Financial Performance - Net sales for the three months ended March 31, 2025, decreased by $78 million, or 2%, compared to the same period in 2024, totaling $3,333 million[138]. - Gross profit for the three months ended March 31, 2025, was $654 million, representing a gross margin of 19.6%, down from 20.3% in 2024[128]. - Operating income increased to $313 million, or 9.4% of net sales, compared to $307 million, or 9.0% of net sales, in the prior year[138]. - Net income attributable to Amcor plc rose by $9 million, or 5%, to $196 million for the three months ended March 31, 2025[139]. - Net sales decreased by $178 million, or 2%, for the nine months ended March 31, 2025, with a remaining decrease of approximately $30 million reflecting higher sales volumes of 1%[151]. - Net income attributable to Amcor plc increased by $77 million, or 16%, for the nine months ended March 31, 2025, mainly due to lower selling, general, and administrative expenses and higher other income[152]. - For the three months ended March 31, 2025, net income attributable to Amcor plc was $196 million, an increase of 4.8% compared to $187 million in the same period of 2024[166]. - Adjusted EBIT for the nine months ended March 31, 2025, was $1,112 million, slightly up from $1,106 million in the prior year, reflecting a growth of 0.5%[166]. Segment Performance - The Flexibles Segment reported net sales of $2,605 million, a slight increase of $7 million, while the Rigid Packaging Segment saw a decrease of $85 million, totaling $728 million[141][143]. - Adjusted EBIT for the Flexibles Segment increased by $16 million, or 2%, for the nine months ended March 31, 2025, reflecting favorable volumes of approximately 8%[155]. - Adjusted EBIT for the Rigid Packaging Segment decreased by $13 million, or 7%, for the nine months ended March 31, 2025, primarily due to unfavorable volumes of approximately 7%[157]. Expenses and Costs - Gross profit decreased by $38 million, or 5%, for the three months ended March 31, 2025, with gross profit as a percentage of net sales declining to 19.6%[145]. - Selling, general, and administrative expenses decreased by $27 million for the three months ended March 31, 2025, primarily due to cost reduction initiatives and restructuring benefits[146]. - The company incurred $99 million in employee-related expenses and $34 million in fixed asset-related expenses as part of its restructuring plan[133]. - Adjusted EBIT decreased by $16 million, or 22%, for the three months ended March 31, 2025, compared to the same period in 2024, driven by unfavorable volumes of 8% and unfavorable price/mix impacts of approximately 11%[144]. Cash Flow and Debt - Net cash provided by operating activities decreased by $102 million to $276 million for the nine months ended March 31, 2025, compared to $378 million in the same period of 2024[187]. - Total debt as of March 31, 2025, was $8,797 million, an increase from $6,699 million as of June 30, 2024, representing a growth of 31.3%[168]. - Net debt increased to $6,752 million as of March 31, 2025, compared to $6,111 million as of June 30, 2024, indicating a rise of 10.5%[168]. - Net cash provided by financing activities increased by $1,654 million for the nine months ended March 31, 2025, compared to the same period in 2024[190]. - The company had cash outflows of $47 million for the purchase of its own shares during the nine months ended March 31, 2025[203]. Mergers and Restructuring - The company completed the merger with Berry Global Group, Inc. on April 30, 2025, issuing approximately 846 million ordinary shares and paying $2.2 billion to extinguish certain Berry indebtedness[130]. - The company expects to realize an annualized pre-tax benefit of approximately $50 million from restructuring actions related to the Russian business by the end of fiscal year 2025[133]. Tax and Other Income - The effective income tax rate increased by 2.0 percentage points to 20.2% for the nine months ended March 31, 2025, primarily due to the tax impact of the divestiture of Bericap[162]. - Other income, net changed by $95 million for the nine months ended March 31, 2025, primarily driven by lower negative impacts of highly inflationary accounting for subsidiaries in Argentina[161]. Assets and Liabilities - The company’s current assets increased to $1,991 million as of March 31, 2025, compared to $1,325 million as of June 30, 2024, reflecting a growth of 50.3%[181]. - Current liabilities decreased to $1,809 million as of March 31, 2025, from $2,375 million as of June 30, 2024, a reduction of 24.0%[181]. Financing Activities - On March 17, 2025, the company issued additional guaranteed senior notes totaling $2.2 billion, including $725 million due 2028, $725 million due 2030, and $750 million due 2035[193][194]. - As of March 31, 2025, the revolving senior bank debt facility had an aggregate limit of $3.75 billion, with $1.21 billion drawn[199]. - The company declared and paid a cash dividend of $0.1275 per ordinary share during the three months ended March 31, 2025[200]. - The company had an undrawn committed credit facility available amounting to $2.54 billion as of March 31, 2025[198]. - The company maintained a leverage ratio not higher than 3.9 times, in compliance with all applicable covenants under its bank debt facilities as of March 31, 2025[196]. - The company entered into an interest rate swap contract for a notional amount of $400 million, paying a fixed rate of 4.30%[192]. - The company paid a commitment fee of $11 million on the Bridge Facility in the three months ended December 31, 2024[199].

Core Insights - Amcor reported $3.33 billion in revenue for the quarter ended March 2025, reflecting a year-over-year decline of 2.3% [1] - The EPS for the same period was $0.18, unchanged from a year ago, with no EPS surprise against the consensus estimate [1] - The reported revenue was a surprise of -4.37% compared to the Zacks Consensus Estimate of $3.49 billion [1] Financial Performance Metrics - Rigid Packaging net sales were $728 million, falling short of the $795.13 million average estimate, representing a year-over-year decline of 10.5% [4] - Flexible net sales reached $2.61 billion, slightly below the $2.67 billion estimate, with a year-over-year increase of 0.3% [4] - Adjusted EBIT for Flexibles was $357 million, compared to the average estimate of $372.48 million [4] - Adjusted EBIT for Corporate expenses was -$28 million, better than the average estimate of -$31.37 million [4] - Adjusted EBIT for Rigid Packaging was $55 million, below the average estimate of $69.01 million [4] Stock Performance - Amcor shares have returned -4.9% over the past month, contrasting with the Zacks S&P 500 composite's -0.2% change [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the broader market in the near term [3]

Financial Performance - Amcor reported quarterly earnings of $0.18 per share, matching the Zacks Consensus Estimate, and consistent with earnings from the previous year [1] - The company posted revenues of $3.33 billion for the quarter ended March 2025, missing the Zacks Consensus Estimate by 4.37%, and down from $3.41 billion a year ago [2] - Over the last four quarters, Amcor has not surpassed consensus EPS or revenue estimates [2][3] Market Performance - Amcor shares have declined approximately 0.9% since the beginning of the year, while the S&P 500 has decreased by 5.5% [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating expected underperformance in the near future [6] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $0.22 on revenues of $3.65 billion, and for the current fiscal year, it is $0.73 on revenues of $13.77 billion [7] - The Containers - Paper and Packaging industry is ranked in the bottom 17% of over 250 Zacks industries, which may negatively impact Amcor's stock performance [8]

Financial Data and Key Metrics Changes - Amcor reported net sales of CHF 3.3 billion and EBIT of CHF 384 million, both marginally higher than the previous year [13] - Adjusted EPS grew by 5% on a comparable basis, benefiting from cost management and improved healthcare volumes [14] - The company expects adjusted EPS for fiscal 2025 to be in the range of $0.72 to $0.74 per share [24] Business Line Data and Key Metrics Changes - In the Flexibles segment, volumes increased by 1%, with modest share gains in healthcare and protein, but offset by weaker consumer demand in North America [15] - The Rigid Packaging segment faced challenges, with net sales approximately 3% lower than last year due to a 2% decline in volumes and unfavorable price mix [19] - Adjusted EBIT for the Rigid Packaging segment was £55 million, impacted by lower volumes and price mix headwinds [20] Market Data and Key Metrics Changes - North American volumes declined by low single digits, particularly in the Beverage sector, while Europe, Asia Pacific, and Latin America saw low to mid single-digit growth [16] - Healthcare volumes improved, with medical volumes up in the high single digits, indicating a recovery in pharmaceutical packaging demand [17] - The overall demand environment in North America became more variable and uncertain, affecting consumer demand [23] Company Strategy and Development Direction - The merger with Berry Global is expected to deliver significant synergies, with an identified total of €650 million over three years, leading to an estimated EPS accretion of over 35% [11] - The company aims to refine its portfolio mix to focus on higher value, faster-growing end markets, enhancing growth rates and margins [10] - Amcor is committed to maintaining a strong investment-grade balance sheet while increasing long-term EPS growth and shareholder value [12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving synergies despite a challenging macroeconomic environment, with a clear visibility to significant EPS growth driven by synergies alone [25] - The company anticipates muted overall demand in Q4, aligning with the current macroeconomic conditions and uncertainty around tariff impacts [23] - Management highlighted the importance of understanding consumer behavior changes, particularly in response to inflation and economic uncertainty [70] Other Important Information - The company has returned £550 million in cash to shareholders through a growing dividend, with a declared dividend of $12.75 per share, a 2% increase from the previous year [22] - Amcor's R&D investment is approximately €180 million annually, with over 1,500 R&D professionals dedicated to addressing complex challenges in functionality and sustainability [10] Q&A Session Summary Question: Insights on North American volume decline - Management noted that North American Beverage business saw high single-digit volume declines, primarily due to weak consumer demand and inflationary pressures [31][32] Question: Synergy-driven EPS growth assumptions - Management confirmed that the €260 million in synergies expected for fiscal 2026 is achievable even in a challenging macro environment, with confidence in delivering these synergies [41][42] Question: Breakdown of procurement synergies - Management indicated that procurement synergies will be a major contributor, with initial focus on SG&A, followed by procurement and operations [47][50] Question: Impact of consumer behavior on growth outlook - Management acknowledged that consumer demand has weakened, leading to changes in purchasing behavior, which affects customer forecasts [70][72] Question: Structural issues in North American Beverage business - Management clarified that the current volume decline is not deemed structural, and improvements are expected as volumes recover [80][82]

Financial Data and Key Metrics Changes - The company reported net sales of CHF 3.3 billion and EBIT of CHF 384 million, both marginally higher than the previous year [14] - Adjusted EPS grew by 5% on a comparable basis, benefiting from cost management and improved healthcare volumes [15] - The company expects adjusted EPS for fiscal 2025 to be in the range of $0.72 to $0.74 per share, reflecting two months of earnings from the legacy Berry business [25] Business Line Data and Key Metrics Changes - In the Flexibles segment, volumes were up 1% year-over-year, with modest share gains in healthcare and protein, offset by weaker consumer demand in North America [16] - The Rigid Packaging segment faced challenges, with net sales approximately 3% lower than last year due to a 2% decline in overall volumes and unfavorable price mix impacts [20] - Adjusted EBIT for the Rigid Packaging segment was £55 million, impacted by lower volumes and price mix headwinds [21] Market Data and Key Metrics Changes - North American volumes were down low single digits, particularly in the Beverage sector, which saw a high single-digit decline [17][32] - Europe, Asia Pacific, and Latin America achieved low to mid single-digit volume growth, with China and India showing mid to high single-digit growth [16][17] - The healthcare market continued to improve, with medical volumes up in the high single digits, indicating strong demand for pharmaceutical packaging [18] Company Strategy and Development Direction - The company aims to deliver identified synergies and accelerate earnings growth following the merger with Berry Global, with a synergy run rate expected to start strong in fiscal 2026 [8][12] - The combined entity will focus on higher value, faster-growing end markets, optimizing R&D investments to address complex functionality and sustainability challenges [11] - The company plans to prune its portfolio to enhance growth rates, margins, and cash generation across remaining segments [11][56] Management's Comments on Operating Environment and Future Outlook - Management noted a variable and uncertain demand environment, particularly in North America, driven by consumer affordability issues and inflation [32][34] - The company remains confident in achieving significant EPS growth through synergies, independent of macroeconomic conditions [26][41] - Management anticipates muted overall demand in Q4, aligning with current macroeconomic conditions, but expects to maintain earnings within original guidance [25] Other Important Information - The company has returned £550 million in cash to shareholders through dividends, with a 2% increase in the March dividend compared to the previous year [24] - The integration teams have already identified €650 million in synergies, with €260 million expected to benefit fiscal 2026 earnings [12][26] Q&A Session Summary Question: Insights on North American volume decline - Management indicated that North American Beverage business saw high single-digit declines due to weak consumer demand, particularly in discretionary categories [32][34] Question: Synergy-driven EPS growth assumptions - Management confirmed that the €260 million in synergies for fiscal 2026 is expected to provide a 12% EPS uplift, independent of organic growth assumptions [36][41] Question: Breakdown of synergies, particularly procurement - Management stated that procurement will be a major contributor to synergies, with initial focus on SG&A, followed by procurement and operations [46][49] Question: Portfolio pruning timing and strategy - Management emphasized the importance of dynamic portfolio management and indicated that the assessment of businesses will continue, but timing for execution remains uncertain [55][56] Question: Procurement synergies and supplier engagement - Management highlighted the importance of harmonizing supplier terms and leveraging the combined entity's purchasing power to achieve procurement synergies [95][96]

Financial Performance - Amcor's Net sales increased by 0.4% to $3,333 million in 3Q25 compared to the prior comparator period[25] - Amcor's EPS increased by 5% to 180 cents in 3Q25 compared to the prior comparator period[25] - Amcor expects approximately 12% adjusted EPS accretion in FY26 through delivery of synergies alone[11,43,45] - Amcor narrowed adjusted EPS range to approximately 72 to 74 cents per share for the year ended June 30, 2025[44] - Amcor expects adjusted Free Cash Flow of approximately $900 million to $1,000 million for the year ended June 30, 2025[44] Merger and Synergies - The merger with Berry Global closed, and integration has commenced earlier than anticipated[11,45] - Amcor expects to deliver $260 million of synergy benefits in fiscal year 2026[21,22] - Amcor has clear visibility to $650 million total synergies expected by year 3[19,22,24] - Amcor anticipates $280 million in one-time cash benefits from working capital efficiencies offsetting costs to achieve synergies[20,24] Segment Performance - Flexibles segment net sales up 1% to $2,605 million in 3Q25[31] - Rigid Packaging segment net sales down 3% to $728 million in 3Q25[36]

Financial Performance - Amcor reported net sales of $9,927 million for the nine months ended March 31, 2025, a decrease of 2% compared to the previous year[9]. - Adjusted EPS for fiscal 2025 is projected to be between 72-74 cents per share, with adjusted free cash flow expected to be $900-1,000 million[1]. - Adjusted EBIT for the nine months ended March 31, 2025, was $1,112 million, reflecting a 3% increase on a comparable constant currency basis[11]. - The Flexibles segment reported net sales of $7,667 million, up 1% compared to the previous year, with an adjusted EBIT margin of 13.1%[21]. - The Rigid Packaging segment experienced a 10% decline in net sales to $728 million, primarily due to the divestment of the Bericap Joint Venture[28]. - Net sales for the nine months ended March 31, 2025, were $9,927 million, an 8% decrease compared to $10,105 million in the prior year, with a 2% unfavorable impact from foreign exchange rates[32]. - Adjusted EBIT for the same period was $171 million, approximately 1% lower than last year, with an adjusted EBIT margin of 7.6%, which is 10 basis points higher than the previous year[35]. - Adjusted free cash outflow for the nine months ended March 31, 2025, was $17 million, a significant decline from an inflow of $115 million in the prior year, primarily due to higher inventories[39]. - The company reported a net income of $557 million for the nine months ended March 31, 2025, compared to $479 million in the prior year[52]. - For the three months ended March 31, 2025, adjusted EBITDA was $477 million, a decrease of 4% compared to the previous year[56]. - Net income attributable to Amcor for the nine months ended March 31, 2025, increased to $550 million, up from $473 million in the same period last year, representing a growth of 16.3%[58]. - Adjusted EPS for the three months ended March 31, 2025, was 13.6 US cents, compared to 12.9 US cents for the same period in 2024, reflecting a growth of 5.4%[56]. - The company reported adjusted free cash flow of $20 million for the three months ended March 31, 2025, down from $63 million in the same period last year[56]. - Adjusted EBIT for the three months ended March 31, 2025, was $384 million, a decrease of 3% from $397 million in the same period last year[61]. - The adjusted EBIT margin for the three months ended March 31, 2025, was 11.5%, compared to 11.6% in the same period last year[61]. Merger and Integration - The merger with Berry Global is expected to deliver $650 million in identified synergies over three years, with $260 million of pre-tax synergies anticipated in fiscal 2026[2]. - The company is positioned for faster integration with Berry Global following the merger closure, enhancing its customer offerings and innovation capabilities[2]. - Amcor completed the merger with Berry Global Group, Inc. on April 30, 2025, which is expected to enhance operational synergies[67]. - Risks associated with the merger include integration challenges, unexpected costs, and potential litigation, which could adversely affect business operations[67]. Cash Flow and Debt - Cash and cash equivalents increased to $2,045 million as of March 31, 2025, up from $457 million at the beginning of the year[53]. - Net debt as of March 31, 2025, was $6,752 million, with leverage at 3.5 times adjusted trailing twelve-month EBITDA, expected to decrease to approximately 3.4 times by June 30, 2025[40]. - Net debt increased from $6,111 million as of June 30, 2024, to $6,752 million as of March 31, 2025[66]. Market and Economic Conditions - North America beverage comparable constant currency net sales and volumes declined in the high single-digit range, while Latin America saw mid-single-digit growth due to favorable price/mix benefits[34]. - Management has indicated that rising interest rates could increase borrowing costs and negatively impact financial condition[68]. - The company faces significant competition and changing consumer demand patterns, which may affect its ability to expand effectively[67]. - The company is exposed to various risks including cybersecurity threats, climate change impacts, and regulatory changes that could affect operations[68]. Tax and Regulatory - For the nine months ended March 31, 2025, GAAP income tax expense was $141 million, compared to $107 million in the prior year, with an effective tax rate of 17.8%[38]. - The company emphasizes the importance of non-GAAP measures such as adjusted EBITDA and adjusted net income for evaluating performance, excluding non-recurring items[69]. - Amcor's guidance is provided on a non-GAAP basis due to uncertainties in predicting certain significant forward-looking items[71]. - The company has received a waiver from ASX's settlement operating rules, allowing deferral of processing conversions between its ordinary share and CDI registers from May 21, 2025, to May 22, 2025[72]. Inflation and Restructuring - The impact of highly inflationary accounting for the nine months ended March 31, 2025, was $8 million, compared to $55 million in the same period last year[58]. - The company incurred restructuring and related expenses of $35 million for the nine months ended March 31, 2025, down from $82 million in the same period last year[58].

Core Insights - Amcor has successfully completed its all-stock combination with Berry Global, enhancing its position as a global leader in consumer and healthcare packaging solutions [2][3][4] - The merger is expected to deliver significant synergies, with an estimated $650 million in total synergies by the end of fiscal year 2028, leading to an adjusted EPS accretion of approximately 12% in fiscal year 2026 [1][4] - The company anticipates annual cash flow exceeding $3 billion by fiscal year 2028, providing substantial capacity for organic reinvestment, value-accretive M&A, and shareholder returns through dividends and share repurchases [1][4] Financial Projections - Amcor expects to achieve $260 million in pre-tax synergies in fiscal 2026, contributing to the overall EPS growth [4] - By the end of fiscal 2028, total pre-tax synergy benefits are projected to reach approximately $650 million, along with an additional $280 million in one-time cash benefits from working capital improvements [4] - The expected annual cash flow of over $3 billion by fiscal 2028 will enhance the company's ability to invest in growth and return value to shareholders [1][4] Strategic Positioning - The merger allows Amcor to refine its portfolio, enhance average growth rates, margins, and cash generation, positioning the company to meet evolving customer and consumer needs [2][3][5] - Amcor's CEO emphasized the importance of leveraging the combined company's global footprint and enhanced innovation capabilities to drive consistent growth and improve margins [4][5] - The integration of Amcor and Berry Global is expected to create a stronger company with a broader offering for customers, ultimately driving long-term value creation for shareholders [4][5]

Core Viewpoint - Amcor Plc (AMCR) is set to report its third-quarter fiscal 2025 results on April 30, with revenue expectations of $3.51 billion, reflecting a 2.9% increase year-over-year, and earnings per share estimated at 18 cents, indicating no change from the previous year [1] Financial Estimates - The Zacks Consensus Estimate for AMCR's fiscal third-quarter revenues is $3.51 billion, indicating a 2.9% growth from the year-ago figure [1] - The consensus estimate for earnings is 18 cents per share, which has decreased by 5.3% over the past 60 days [1][2] - The Earnings ESP for AMCR is -2.17%, suggesting a lower likelihood of an earnings beat this quarter [3] Volume and Segment Performance - Amcor's total volume growth was negative for seven consecutive quarters until Q4 of fiscal 2024, where it saw a 1% increase, followed by 2% growth in both Q1 and Q2 of fiscal 2025 [4] - The Flexible segment is projected to achieve a volume growth of 4.9% in Q3, with sales expected to reach $2.68 billion, representing a 3% year-over-year increase [7] - The Rigid Packaging segment is estimated to have a 4.1% rise in volumes, with sales projected at $0.85 billion, indicating a 4% year-over-year growth [8] Market Dynamics - Amcor has been facing supply shortages and price volatility in certain resins and raw materials due to market dynamics and inflation, which are expected to impact Q3 earnings [6] - Overall price/mix benefits are anticipated to be a negative 1.9% for the quarter [5] Recent Developments - The European Commission has approved the merger between Amcor and Berry Global Group, which is set to close on April 30, 2025, pending certain conditions [9] - Over the past year, Amcor's shares have increased by 10.6%, outperforming the industry, which saw a 2.3% decline [10]

ZURICH, April 25, 2025 /PRNewswire/ -- Amcor plc ("Amcor") (NYSE: AMCR, ASX: AMC) will announce its fiscal 2025 third quarter results for the three month period ended March 31, 2025, after the U.S. market closes on Wed., April 30, 2025. A conference call and webcast to discuss Amcor's results will be held at 5.30 p.m. U.S. Eastern Daylight Time on Wed., April 30 / 7.30 a.m. Australian Eastern Standard Time on Thurs., May 1. For those wishing to participate in the call, please use the following dial-in numbe ...