Packaging giant Amcor has reported soft demand for consumer packaging in its December quarter results. According to Investors Mutual portfolio manager Daniel Moore, sales and volumes were down 2 per cent due to weaker consumer demand for end products. Amcor is a global leader in developing and manufacturing responsible packaging solutions for food, beverage, pharmaceutical, medical, home, and personal care products. The company operates across the world, providing packaging solutions to various industries.
Despite the downturn, Amcor has reiterated its full-year guidance for earnings per share of between US$4 to US$4.15. This implies a seasonally strong second half of the 2025-26 financial year. Moore noted positive signs from one of Amcor’s key customers, Pepsi. Pepsi indicated it would be more price-competitive with its products, potentially improving the volume outlook for Amcor’s business.
Amcor’s strategic moves include the acquisition of smaller rival Berry in a $13 billion deal a year ago. This acquisition expanded Amcor’s network within the United States. However, not all segments are performing equally well.
Jefferies analyst Ramoun Lazar pointed out that Amcor’s December quarter EBITDA was 2 per cent lower than market consensus. This shortfall was attributed to ongoing weakness in the non-core beverages segment, highlighting specific areas of concern within Amcor’s overall performance.
