Amcor Half Year Financial Report 2008
Financial Performance
Consolidated Income Statement
| A$ million | Jul/Dec 2006 | Jul/Dec 2007 |
| Net sales | 5,472.1 | 4,739.2 |
| PBITDA | 580.6 | 537.5 |
| – Depreciation and amortisation | (230.0) | (203.7) |
| Profit before interest and tax | 350.6 | 333.8 |
| – Net interest (ex PACRS) | (94.6) | (91.7) |
| – PACRS interest | (9.9) | – |
| Profit before tax | 246.1 | 242.1 |
| – Income tax | (52.9) | (51.7) |
| – Minority interests | (8.2) | (5.4) |
| Profit after tax and before significant items | 185.0 | 185.0 |
Consolidated Balance Sheet
| A$ million | Dec 2006 | Dec 2007 |
| Current assets | 3,110.2 | 2,655.7 |
| Property, plant and equipment | 4,185.3 | 3,713.1 |
| Intangibles | 1,785.1 | 1,437.9 |
| Investments and other assets | 535.0 | 549.4 |
| Total assets | 9,615.6 | 8,356.1 |
| Short term debt | 975.1 | 619.2 |
| Long term debt | 1,928.0 | 1,749.3 |
| Creditors and provisions | 2,971.6 | 2,558.7 |
| Convertible notes | 219.8 | – |
| Shareholders’ equity | 3,521.1 | 3,428.9 |
| Total liabilities and shareholders’ equity | 9,615.6 | 8,356.1 |
Consolidated Cash Flow Statement
| A$ million | Jul/Dec 2006 | Jul/Dec 2007 |
| PBITDA | 580.6 | 537.5 |
| Interest | (94.1) | (88.4) |
| Tax | (34.5) | (27.4) |
| Cash significant items | (79.2) | (56.1) |
| Base capital expenditure | (155.2) | (99.7) |
Movement in working capital |
(66.9) | (154.1) |
| Other | (26.1) | (18.9) |
| Operating cash flow | 124.6 | 92.9 |
| Dividends | (156.6) | (154.8) |
| Free cash flow | (32.0) | (61.9) |
| Divestments | 39.0 | 970.5 |
| Growth capital/acquisitions | (58.2) | (78.5) |
| Proceeds from share issues | (123.3) | (158.5) |
| Foreign exchange rate changes | (0.7) | (11.8) |
| Movement in net debt | (175.2) | 659.8 |
| 1) Movement in working capital relates to continuing operations. | ||
Segmental Analysis (Before Significant Items)
| Sales A$ million |
Jul/Dec 2006 PBIT A$ million |
ROAFE % |
Sales A$ million |
Jul/Dec 2007 PBIT A$ million |
ROAFE % |
|
| Amcor PET Packaging | 1,530.5 | 95.4 | 9.1 | 1,456.0 | 99.3 | 10.6 |
| Amcor Australasia | 1,171.9 | 108.5 | 12.4 | 1,133.8 | 112.9 | 12.9 |
| Amcor Flexibles | 1,498.0 | 85.1 | 11.1 | 1,440.9 | 83.1 | 11.5 |
| Amcor Sunclipse | 651.6 | 36.3 | 21.8 | 572.3 | 36.3 | 30.4 |
| Amcor Asia | 62.9 | 16.6 | 9.4 | 58.4 | 19.4 | 11.2 |
| Investments/other | – | (27.1) | – | – | (24.9) | – |
| Intersegmental | (4.8) | – | – | (4.7) | – | – |
| Continuing operations | 4,910.1 | 314.8 | 10.4 | 4,656.7 | 326.1 | 11.7 |
| Amcor PET Packaging |
440.0 | 22.5 | 10.9 | – | – | – |
Amcor Australasia |
132.9 | 13.3 | 21.1 | 96.2 | 7.7 | 18.3 |
| Intersegmental | (10.9) | – | – | (13.7) | – | |
| Discontinued operations | 562.0 | 35.8 | 13.3 | 82.5 | 7.7 | 18.3 |
| Total | 5,472.1 | 350.6 | 10.7 | 4,739.2 | 333.8 | 11.8 |
| (1) European PET Packaging (2) Australasian Food Can and Aerosols business |
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Segmentals
During the year, the consolidated entity did not change its reportable business segments. However, the comparative information for the half year ending 31 December 2007 and 30 June 2007, has been restated to report discontinued operations for the divestments of the European PET packaging business in PET Packaging and the Australasian Food Can and Aerosols business.
During the half year, a detailed review of the corporate costs of the consolidated entity was undertaken and it was identified that $17.0 million (2006/07: $16.7 million) of the total of $41.9 million (2006/07: $43.9 million) was properly attributable to the results of the operating segments and as such, has been allocated based on relevant cost and service drivers.
Cash Flow By Business Group – All Operations Jul/Dec 2007
| A$ million | PET | Australasia | Flexibles | Sunclipse | Asia | Corporate | Consolidated |
| PBITDA | 179.0 | 184.5 | 133.4 | 43.3 | 21.4 | (24.1) | 537.5 |
| Interest | – | – | – | – | – | (88.4) | (88.4) |
| Tax | – | – | – | – | – | (27.4) | (27.4) |
| Base capital expenditure | (62.8) | (9.7) | (52.0) | 29.2 | (2.4) | (2.0) | (99.7) |
| Cash significant items | – | (33.7) | (22.4) | – | – | – | (56.1) |
| (Increase)/decrease in working capital | (16.3) | (96.1) | (26.2) | (15.1) | (1.1) | 0.7 | (154.1) |
| Other items | – | – | – | – | (10.3) | (8.6) | (18.9) |
| Operating cash flow | 99.9 | 45.0 | 32.8 | 57.4 | 7.6 | (149.8) | 92.9 |
| Dividends paid | (3.6) | (0.9) | – | – | – | (150.3) | (154.8) |
| Free cash flow | 96.3 | 44.1 | 32.8 | 57.4 | 7.6 | (300.1) | (61.9) |
| Divestments | 823.1 | 145.7 | 1.7 | – | – | – | 970.5 |
| Growth capital expenditure/ acquisitions |
(41.2) | – | (21.5) | (0.1) | (15.7) | – | (78.5) |
| Net proceeds from share issues | 7.2 | (3.5) | – | – | – | (162.2) | (158.5) |
| Foreign exchange rate changes | – | – | – | – | – | (11.8) | |
| Net cash generated | 885.4 | 186.3 | 13.0 | 57.3 | (8.1) | (474.1) | 659.8 |
| Decrease in net debt | 659.8 | ||||||
| * Divestments include the return of $112 million of the $177 million in cash (as disclosed in the Full Year accounts) that the European PET Packaging business held on disposal. This cash was returned to Amcor via the repayment of inter– company loans in the period to closing. | |||||||
Significant Items
| A$ million | Jul/Dec 2006 | Jul/Dec 2007 |
| Consolidated significant items | ||
| Significant items before related income tax expense | ||
| Income | ||
| Closures business gain on disposal and impairment | 6.8 | – |
| Gains arising from associate’s equity issue | – | 2.2 |
| Disposal of Australasian Food Can and Aerosols business | – | 11.7 |
| Expense | ||
| PET business integration and restructure | (6.1) | – |
| Australasian restructuring | (67.4) | (4.1) |
| Flexibles market sector rationalisation | (31.3) | (58.8) |
| Significant items before related income tax expense | (98.0) | (49.0) |
| Income tax on significant items | 30.7 | 18.0 |
| Significant items after related income tax expense | (67.3) | (31.0) |
| Significant items attributable to: | ||
| Members of Amcor Limited | (67.3) | (31.0) |
| Minority interest |
Details of Consolidated Significant Items Before Income Tax Jul/Dec 2007
| A$ million | Redundancy | Plant Closure |
Disposal of Controlled Entities |
Other |
Asset Impairments |
Total |
| PET | – | – | – | – | – | – |
| Australasia | (7.6) | (9.3) | 11.7 | 12.8 | – | 7.6 |
| Flexibles | (28.6) | (14.3) | – | (5.6) | (10.3) | (58.8) |
| Sunclipse | – | – | – | – | – | – |
| Asia | – | – | – | 2.2 | – | 2.2 |
| Closures | – | – | – | – | – | – |
| Total | (36.2) | (23.6) | 11.7 | 9.4 | (10.3) | (49.0) |
| (a) Includes the gain on property disposals in Australasia. | ||||||
Significant Items
Significant items after tax for the six months ended 31 December 2007 was a loss of $31.0 million, compared to a loss of $67.3 million for the corresponding period last year.
Significant items after tax comprised the profit on the sale of the Australasian Food Can and Aerosol business of $11.2 million, the gain arising from the equity issue by AMVIG of $2.2 million, net restructuring gain in Australasia, which primarily relates to the Fibre Packaging turnaround plan, of $1.9 million and the Flexibles market sector rationalisation expense of $46.3 million.
Final Dividend
The Directors declared an unfranked interim dividend of 17 cents per share. This compares with an unfranked interim dividend of 17 cents per share for the first half of 2006/07. 75% of the interim dividend is sourced from the Conduit Foreign Income Account for the benefit of foreign shareholders. The record date is 3 March 2008 and payment date will be 31 March 2008.