Amcor (AMCR) Inks Deal to Buy India-Based Phoenix Flexibles
Amcor plc AMCR announced that it inked a deal to acquire the India-based packaging company, Phoenix Flexibles. This deal will allow Amcor to broaden its product offering in attractive high-value segments by enabling local production of a broader range of more sustainable packaging solutions.
The deal is expected to close in the September-end quarter of 2023 , subject to customary closing procedures.
Currently, Amcor has four flexible packaging plants in India. Over the previous three years, the business has generated double-digit organic sales growth per year.
The acquisition will increase Amcor's capabilities in the rapidly growing India market.
Phoenix Flexibles generates annual revenues of around $20 million from the sale of flexible packaging for food, home care and personal care applications. It has a strategically located facility in Gujarat, which will immediately boost Amcor's capacity to meet the ongoing high demand and create significant shareholder returns.
The scalable nature of Phoenix Flexibles' facility, along with the localization of new capabilities, bodes well for Amcor's high-growth market expansion strategy.
Amcor is investing in this acquisition to sustain and improve on the considerable momentum that the packaging business has produced over the last several years.
However, the company anticipates weak demand for the fiscal fourth quarter and a mid-single-digit decline in overall volumes compared with the last year. Fiscal 2023 adjusted EPS is expected to be 72-74 cents. Amcor expects an adjusted comparable constant currency EPS decline of 1-4% for fiscal 2023.
Amcor belongs to the Containers - Paper and Packaging industry, along with AptarGroup, Inc. ATR, Packaging Corporation of America PKG, and Sealed Air Corporation SEE.
AMCR is expected to report fiscal fourth-quarter earnings on Aug 16, after the closing bell.
Let's take a look at its peers' quarterly performance.
AptarGroup reported second-quarter 2023 adjusted earnings per share of $1.23, beating the Zacks Consensus Estimate of $1.13. The bottom line increased 26% year over year from 98 cents.
Total revenues increased 6% year over year to $896 million in the reported quarter. The reported figure was in line with the Zacks Consensus Estimate. ATR has a trailing four-quarter surprise of 8.6%, on average.
Packaging Corp reported adjusted earnings per share of $2.31 in the second quarter of 2023, beating the Zacks Consensus Estimate of $1.95. The reported figure beat the company’s EPS guidance of $1.96 in the quarter under review. However, the bottom line decreased 28% year over year.
Sales in the second quarter fell 12.7% year over year to $1,952 million. The top line missed the Zacks Consensus Estimate of $1,980 million. PKG has a trailing four-quarter surprise of 5.1%, on average.
Sealed Air reported second-quarter 2023 adjusted earnings per share of 80 cents, which surpassed the Zacks Consensus Estimate of 68 cents. The bottom line fell 21% year over year due to lower volumes.
Total revenues were down 2.6% year over year to $1,381 million in the reported quarter. The top line missed the Zacks Consensus Estimate of $1,416 million. SEE has a trailing four-quarter surprise of 5.6%, on average.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Sealed Air Corporation (SEE) : Free Stock Analysis Report
Packaging Corporation of America (PKG) : Free Stock Analysis Report
AptarGroup, Inc. (ATR) : Free Stock Analysis Report
Amcor PLC (AMCR) : Free Stock Analysis Report
