Amcor chairman Chris Roberts has said that he expects targeted growth opportunities within the existing business will deliver improved earnings and increased cash flow, according to a report from Asia Pulse.
Roberts said a critical part of continued growth is the strength of leadership and management of the company.
Amcor has 218 plants in 36 countries with businesses that include flexible, fibre and tobacco packaging and PET and closures operations. Amcor is the world leader in PET containers with around 12 per cent global share. It recently extended its European PET manufacturing capabilities with the purchase of German PET specialist Schmalbach-Lubeca."There are numerous growth opportunities within the existing business operations that will deliver not only improved earnings growth but also increased cash flows," Roberts said.
He added that a critical component for continued growth is the strength of leadership and management built from within the company. Amcor has developed something of a reputation within the industry for its ability to identify openings in niche packaging markets, so any future moves will be keenly observed by the industry. "Amcor has a clear strategy for the future and a focus on delivering consistent earnings growth while also observing closely its corporate governance responsibilities," he said.
Chief executive Russell Jones said that as the packaging industry continues to consolidate, Amcor will target specific market segments rather than try to offer a broad product offering.
He said the target markets for growth include flexible packaging and PET bottles and jars for the food and beverage industries. He said Amcor has more than 90 per cent of its sales in the food and beverage industries in its global business.
"This geographic spread of businesses and sales in the defensive food and beverage sectors helps reduce the volatility of earnings growth and maintains acceptable returns for our shareholders," he said.