Amcor says price increases will continue as profit slides 11pc

afr.com:

Amcor, the world’s largest consumer packaging company, says the $US1.1 billion ($1.7 billion) in price rises pushed through to customers in the past 12 months are unlikely to be topped this year, but warned inflation has not been tamed.

The company’s chief executive, Ron Delia, said while inflation in raw materials such as resin and aluminium was starting to slow, there was no indication that prices would start to come down, and the company would keep lifting prices to claw back cost increases.

Amcor is the largest consumer goods packaging company in the world, with food, beverages and personal care products manufacturers among its customer base.  Bloomberg

He also said that while inflation rates were starting to trend down generally, the stickiness would need to be managed carefully.

“I wouldn’t be betting that central banks are done,” Mr Delia said on Thursday from the United States. “But we are probably closer to the end.”

Amcor operates 218 factories in 43 countries making bottles, plastic pouches, wrappers and containers for food, beverages and healthcare products. The group suffered an 11 per cent slide in net profit after tax to $US1.089 billion ($1.69 billion) for the 12 months ended June 30 in a softening consumer environment. Revenues were flat at $US14.7 billion.

More shoppers are buying bulk packs as they chase value, and are also shifting to supermarket home brands.

“There’s a bit of value hunting going on by consumers around the world,” Mr Delia said, adding that he expected profit growth to resume in the second half of the financial year after a “soft patch” brought on by higher costs and as consumers cut spending in response to interest rate rises.

Mr Delia said Amcor was still “pricing to compensate for