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Reporting season 2022: Why shares in Amcor fell and Centuria rose

Posted: 2 February 2022 11:45 am
News
Woman checking financial trading data with smartphone in city

Reporting season is underway with investors gaining a snapshot as to how their investments are performing.

Reporting season kicked off yesterday with investors getting their biannual opportunity to see how their investments are going.

It was a slower day in terms of announcements with the only major one being Amcor.

The world's largest consumer packaging goods company had mixed results, with profits rising but inflation and supply chain issues likely to impact the company.

Amcor

Amcor confirmed strong half-yearly results, but the market appeared troubled about the company's future, falling on its results.

The business has confirmed another strong half-yearly result and points to a strong future in its latest market announcement.

Amcor, which currently trades on both the Australian Securities Exchange (ASX) and the New York Stock Exchange (NYSE), notes that its net sales rose 12% to US$6.9 billion in the first 6 months, while adjusted earnings before interest and taxes (EBIT) was up 5% to US$769 million.

The company does not expect any changes to its full-year guidance, forecasting earnings per share (EPS) growth of between 7 and 11%.

Amcor will pay its shareholders a quarterly dividend of US$12 cents, while an additional US$200 million was set aside for share repurchasing.

The company has set aside $600 million in total buying its own shares.

The global packaging company notes the challenge of current supply chain issues throughout its statement, but notes they will overcome this concern.

"While the external environment will continue to evolve, we remain focused on executing our strategy for long-term value creation from the strong foundation established over the last several years," CEO Ron Della said.

"The Amcor investment case has never been stronger and we are increasing investments in premium segments like healthcare and protein, in emerging markets and in our innovation capabilities to drive growth and margin expansion."

When the market opened Amcor declined 1.6% to $16.69 after reporting its first-half results.

Recap of yesterday's results

Yesterday saw reporting season begin, with Credit Corp Group and Centuria Industrial REIT revealing their financials to the market.

Credit Corp Group showed strong results, increasing its net profits by 8%.

As such, the share price went up 4.96% to $35.57 during yesterday's trading.

However, investors took the opportunity to cash in on the higher price with the share down 3% during today's trading.

Centuria Industrial REIT also had a strong result based on yesterday's figures.

The largest domestic pure-play industrial property trust generated $53.9 million in funds from its operation.

Investors agreed, with the market continuing to buy today, with the REIT up 1.08% at the time of writing.

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