Packaging firm Amcor misses sales estimates on tepid demand
Aug 15 (Reuters) -Packaging company Amcor 485.F, AMCR.N reported a more-than-expected decline in fourth-quarter sales on Thursday, hurt by weaker demand for its containers and cartons.
Volumes for the company's products in rigid packaging fell due to persistent destocking in healthcare categories in North America — a major revenue-generating region.
Sales were also hurt by lower volumes in North American beverage business through the quarter ended June 30.
Quarterly sales at Amcor — which counts Cadbury parent Mondelez International MDLZ.O and beverage maker PepsiCo PEP.O as its customers — dropped 4% to $3.54 billion. Analysts on average estimated 1% decline to $3.64 billion, according to LSEG data.
Peer International Paper IP.N also saw a slowdown in demand for its corrugated packaging containers in the latest quarter.
Amcor's adjusted earnings for the fourth quarter were at 21.1 cents per share, edging past analysts' estimate of 20 cents, aided by easing raw material costs.
The company expects adjusted earnings per share for fiscal 2025 to be between 72 and 76 cents, the midpoint of which was in line with analysts' estimate of 74 cents.
It posted adjusted profit of 70.2 cents per share for fiscal 2024.
Reporting by Anuja Bharat Mistry in Bengaluru; Editing by Shilpi Majumdar
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