Amcor (AMCR) Expands Its Paper-Based Packaging Product Line
Amcor plc AMCR announced that it is expanding its packaging range, AmFiberTM Performance Paper, in Europe. The modified range will include heat seal sachets for dry culinary and beverage applications, like instant coffee, drink powders, spices, seasonings and dried soups.
The company also announced that it has invested in manufacturing capacity to meet the increasing demand for paper-based packaging.
In order to support the company's global businesses, Amcor has incorporated a cutting-edge production line in its Amcor Flexibles Alzira plant in Spain that can produce both cold and heat-seal AmFiberTM packaging. This production line has airtight seals to provide optimal product protection throughout the supply chain and shelf life.
AmFiberTM Performance Paper was first used in 2022 and is currently available on shop shelves for well-known snacks and confectionery brands. The paper-based packaging provides high-barrier protection against oxygen and moisture.
Amcor is constantly striving to get an edge over the competition and to meet ever-evolving consumer needs through innovation. The company invests around $100 million annually in R&D.
The expansion into culinary and beverage packaging is yet another significant step toward creating recyclable paper packaging for its segments. AMCR has a number of fascinating initiatives in its paper R&D pipeline.
In third-quarter fiscal 2023, the company reported adjusted earnings per share of 18 cents, which came in line with the Zacks Consensus Estimate. The bottom line declined 14% from the prior-year quarter due to lower volumes.
Total revenues for the quarter were $3,667 million, which missed the consensus estimate of $3,705 million. Revenues were down 1% in comparison with the year-ago quarter. Net sales on a comparable constant-currency basis were 1% higher than last year’s quarter, reflecting price/mix benefits of approximately 4%, partly offset by 3% lower volumes.
Price Performance
Over the past year, shares of this Zacks Rank #4 (Sell) company have declined 16% compared with the industry’s fall of 1.2%.
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Stocks to Consider
Some better-ranked stocks from the Industrial Products sector are Hubbell Incorporated HUBB, The Manitowoc Company, Inc. MTW and AptarGroup, Inc. ATR. HUBB and MTW sport a Zacks Rank #1 (Strong Buy) at present, and ATR carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Hubbell has an average trailing four-quarter earnings surprise of 21%. The Zacks Consensus Estimate for HUBB’s fiscal 2023 earnings is pegged at $13.81 per share. The consensus estimate for 2023 earnings has moved 22.5% north in the past 60 days. Its shares have gained 66.9% in the last year.
Manitowoc has an average trailing four-quarter earnings surprise of 38.8%. The Zacks Consensus Estimate for MTW’s 2023 earnings is pegged at 85 cents per share. The consensus estimate for 2023 earnings has moved 63.5% north in the past 60 days. MTW’s shares have gained 49.2% in the last year.
The Zacks Consensus Estimate for AptarGroup’s 2023 earnings per share is pegged at $4.15, up 7.5% in the past 60 days. It has a trailing four-quarter average earnings surprise of 6.4%. ATR has gained 12.6% in the last year.
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