Packaging giant Amcor expects higher earnings this financial year despite global economic uncertainty and volatile markets.
Amcor says it performed very well in the first six months of 2015/16 even though the business environment is volatile and low-growth.
Chief executive Ron Delia says Amcor's primary focus is on packaging for consumer staples such as food, healthcare, personal care and pharmaceuticals, which are resilient markets.
"We're not expecting significant improvement in general economic conditions anywhere," he told reporters on Monday.
"I would characterise the economies that we operate in as subdued and volatile, but I would just point to the defensiveness and the resilience of our business in contrast."
Mr Delia said Amcor had substantial opportunities to grow.
"The full-year outlook is for higher earnings than the 2014/15 year, expressed in constant currency terms," he said.
Amcor on Monday reported a 4.9 per cent dip in net profit for the six months to December 31 to $US305.5 million.
The impact of the higher US dollar wiped $US37 million off the bottom line.
Sixty per cent of Amcor's earnings are in foreign currencies that are translated to US dollars.
But on a constant currency basis, Amcor's net profit rose 6.6 per to $US342.6 million.
Mr Delia said Amcor had delivered an outstanding result, with stronger-than-expected growth in the rigid plastics and tobacco packaging businesses.
Amcor also benefited from recent acquisitions in the US, South Africa, Brazil, China and India and is building three new manufacturing plants in the Philippines, Indonesia and the US.
Mr Delia said the tobacco packaging business benefited from strong volumes in Europe.
Pending tax increases on tobacco in eastern Europe, particularly in Russia and Turkey, were prompting Amcor's customers to build up stocks.
Also, in western Europe, regulations on tobacco packaging are set to change in May, so customers there were also stock piling.
Mr Delia said the impact of the pending changes would ease in the second half as customers destocked.
Amcor's rigid plastics business was boosted by strong demand from the beverages business in North America, where there was a warm start to summer and growing demand for recyclable PET bottles.
Shares in Amcor were $1.17, or 9.57 per cent, higher at $13.40.
IG market strategist Evan Lucas said Amcor was one of the stocks on the share market most heavily exposed to foreign exchange fluctuations and had clearly been affected by it.
But investors may have liked the result in constant currency terms and the company's forward guidance, he said.
AMCOR RESULTS IMPACTED BY CURRENCY MOVEMENTS
* Net profit down 4.9pct to $US303.5m, but up 6.6pct in constant currency terms
* Revenue down 5.4pct to $US4.5b, but up 3.3pct in constant currency terms
* Interim dividend of 19 US cents per share, unchanged
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