Amcor Delivers Strong Q1 Performance Despite Volatile Inflationary Environment
Amcor, a leading global packaging company, has reported strong operating results for the first quarter of 2027, despite navigating a volatile inflationary environment. The company's progress in improving safety performance and delivering industry-leading performance in this area is particularly noteworthy.
In a recent conference call, Peter Konieczny, Chief Executive Officer, highlighted the company's solid operating results, citing broad-based positive 1% organic volume growth led by 3% volume growth in focus categories. Adjusted EPS of $0.95 was flat to prior year on a constant currency basis as expected, after adjusting for the impact of divestitures.
"We are pleased with the progress we have made in improving the safety performance of the combined organization," Konieczny said. "We remain focused on delivering industry-leading performance as we work to build on our strong track record in safety."
Amcor's success in managing inflationary pressures was also a key highlight, with the company passing through higher resin costs totaling $435 million in the quarter and taking swift action to ensure continuity of supply for customers. The company has also seen an acceleration in non-raw material input costs such as energy and distribution costs, particularly in September.
"We took swift action to ensure continuity of supply for our customers while responsibly managing cost and pricing to counter these inflationary pressures," Konieczny said.
The company's focus on growth categories was also a significant theme, with Amcor delivering strong performance in pet food, driven by innovative sustainable barrier packaging solutions, as well as positive volumes in beauty and wellness, liquids, and healthcare. Growth in emerging markets was led by China, where the company has a broad product portfolio across food, healthcare, and beauty, and strong engagement with customers.
"We are adding to our manufacturing capacity, which will help us maintain proximity to demand and drive growth," Konieczny said. "We are also enhancing our focus on targeted customer relationships, including global accounts, where we delivered solid growth this quarter."
Amcor's board has approved a modest increase in the quarterly dividend to $0.66 per share, reflecting ongoing confidence in business momentum and disciplined approach to capital allocation. The company has updated its adjusted EPS outlook for the transition period to a range of $1.70-$1.80 per share from its previous expectation of $1.80-$1.90 per share.
"We remain confident in delivering the $130 million target for the transition period and $650 million over the three-year period," Konieczny said.
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