Amcor plc AMCR launched a paper-based refill pack for instant coffee and dry beverage products called the AmFiber Performance Paper stand-up pouch. This move is in line with the growing consumer demand for more sustainable refill packaging.

AMCR’s AmFiber Performance Paper stand-up pouch is designed for recyclability in most European countries due to its 85% fiber content.

The company intends to optimize the presentation and functionality while showcasing ongoing innovation in paper-based solutions and marking a significant step forward in circular refill packaging. The pouch can be used with coffee brands' existing packing machinery and is efficiently distributed due to its compact, lightweight design.

Details on Amcor’s AmFiber Paper Pouch

The AmFiber Performance Paper stand-up pouch specializes in preserving the aroma and taste of coffee products by providing solid seal integrity and barrier.

The AmFiber refill pouch offers a sustainable packaging solution, reducing the carbon footprint of dry beverage packaging by up to 73%. Additionally, the product helps brands minimize Environmental Product Responsibility fees, saving up to 70-90% compared with non-recyclable alternatives.

AMCR’s Focus on Growth

Amcor has been focusing on higher-growth, higher value-added, more packaging-intensive segments like healthcare, protein, pet food, premium coffee and hot fill beverage containers. The company has a leading position in each of these categories, which together generate more than $4 billion in annual revenues. The growth rates in all these segments are higher than the average across broader consumer markets, indicating significant improvement potential.

The company is investing more in these segments to capitalize on the growth prospects.

Amcor’s Q2 Performance

AMCR reported second-quarter fiscal 2025 (ended Dec. 31, 2024) adjusted earnings per share of 16 cents, which met the Zacks Consensus Estimate. The company reported earnings of around 16 cents in the year-ago quarter. Gains from improved volumes, continued strong cost performance and benefits from restructuring initiatives were offset by unfavorable impacts from price/mix.

Amcor’s revenues dipped 0.3% year over year to $3.24 billion. The downside was due to a 1% unfavorable impact of foreign exchange and a 1% impact of pass-through of lower raw material costs. The volume rose 2.3% from the year-ago quarter. Price/mix had an unfavorable impact of approximately 2% due to lower volumes in high-value healthcare categories. The top line missed the Zacks Consensus Estimate of $3.44 billion.

Story Continues

AMCR Stock’s Price Performance

In the past year, the company’s shares have gained 4.4% compared with the industry’s 0.5% growth.Zacks Investment Research

Image Source: Zacks Investment Research

Amcor’s Zacks Rank & Stocks to Consider

AMCR currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks from the Industrial Products sector are Applied Industrial Technologies, Inc. AIT, Enersys ENS and RBC Bearings Incorporated RBC. These three companies have a Zacks Rank #2 (Buy) at present. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

Applied Industrial has an average trailing four-quarter earnings surprise of 5.3%. The Zacks Consensus Estimate for AIT’s 2025 earnings is pinned at $9.90 per share, which indicates year-over-year growth of 1.5%. The company’s shares have gained 15.8% in a year.

The Zacks Consensus Estimate for Enersys’ fiscal 2025 earnings is pegged at $10.00 per share, which indicates year-over-year growth of 19.7%. The company has a trailing four-quarter average earnings surprise of 2.2%. ENS shares have gained 4.9% in a year.

The Zacks Consensus Estimate for RBC Bearings’ fiscal 2025 earnings is pegged at $9.83 per share, which indicates year-over-year growth of 14%. The company has a trailing four-quarter average earnings surprise of 4.9%. RBC shares have gained 25.3% in a year.

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

RBC Bearings Incorporated (RBC):Free Stock Analysis Report

Applied Industrial Technologies, Inc. (AIT):Free Stock Analysis Report

Enersys (ENS):Free Stock Analysis Report

Amcor PLC (AMCR):Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

View Comments