Company Overview - Amcor plc (AMCR) and Berry Global Group, Inc. (BERY) are set to merge, with the deal clearing significant regulatory hurdles, including antitrust approvals from China and Brazil [1][2] - The merger is expected to close in mid-2025, pending additional closing conditions [2] Merger Details - The merger will create a global leader in consumer packaging solutions, combining Amcor's global flexibles and regional containers with Berry Global's regional flexibles and global containers and closures [3] - The combined entity will offer a broader range of flexible film and converted film products, focusing on sustainability and reducing carbon footprint, with flexibles accounting for approximately 60% of the business [4] Financial Profile - Upon closing, Berry Global's shareholders will receive 7.25 Amcor shares for each BERY share held, resulting in Amcor holding about 63% of the combined company [5] - The merger will result in combined revenues of $24 billion and adjusted EBITDA of $4.3 billion, with projected annual cash flow exceeding $3 billion [6] Synergies and Benefits - Amcor estimates $650 million in benefits from identified costs, growth, and financial synergies by the end of the third year post-closing, along with an additional $280 million in one-time cash benefits from working capital efficiencies [7] - The deal is expected to provide a 35% adjusted cash earnings per share accretion and a double-digit return on investments [7] Leverage and Financial Strategy - Amcor anticipates a net leverage of 3.3X at the closure of the transaction, with plans to reduce it below 3.0X during the first full year [8] Industry Context - The merger is part of a broader trend of consolidation in the packaging industry, which has seen significant activity, including the merger between Novolex and Pactiv Evergreen Inc. [9] - The Novolex and Pactiv Evergreen combination will create a leading manufacturer in food, beverage, and specialty packaging products, expected to close by mid-2025 [10]

ZURICH, March 13, 2025 /PRNewswire/ -- Amcor plc (NYSE:AMCR; ASX:AMC) ("Amcor") announced today that Amcor Flexibles North America, Inc. ("AFNA"), a wholly-owned subsidiary of Amcor, has priced a private offering (the "Offering") of guaranteed senior notes in an aggregate principal amount of $2.2 billion (collectively, the "Notes"). The Notes consist of (i) US$725,000,000 principal amount of 4.800% Guaranteed Senior Notes due 2028, (ii) US$725,000,000 principal amount of 5.100% Guaranteed Senior Notes due 2 ...

Core Viewpoint - Amcor plc and Berry Global Group, Inc. have received U.S. antitrust clearance for their proposed combination, with expectations to close the transaction in mid-calendar year 2025 [1][2][3] Group 1: Regulatory Approvals - The expiration of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act satisfies a closing condition for the merger [1] - Additional regulatory approvals have been received from authorities in China and Brazil, indicating progress in the approval process [2] Group 2: Company Profiles - Amcor is a global leader in responsible packaging solutions, generating $13.6 billion in annual sales with operations in 40 countries and a workforce of 41,000 [4] - Berry Global is also a leader in innovative packaging solutions, employing over 34,000 people across more than 200 locations, focusing on sustainability and the circular economy [5]

Group 1 - Amcor plc and Berry Global Group, Inc. have made significant progress on their merger deal, with shareholder approval and an expected closing date in mid-2025, subject to closing conditions [1][2] - The merger aims to combine Amcor's global flexibles and regional containers businesses with Berry Global's regional flexibles and global containers and closures businesses, creating a global leader in consumer packaging solutions [2][3] - The merged entity will enhance offerings in flexible film and converted film, providing more sustainable solutions and a unique global healthcare portfolio, while strengthening positions in high-growth categories such as Healthcare, Protein, and Food Service [3][4] Group 2 - Amcor estimates $650 million in benefits from identified costs, growth, and financial synergies by the end of the third year post-closing, along with an additional $280 million in one-time cash benefits from working capital efficiencies [4] - Upon closing, Berry Global's shareholders will receive 7.25 Amcor shares for each share held, resulting in Amcor owning approximately 63% of the combined company, which will have combined revenues of $24 billion and adjusted EBITDA of $4.3 billion [5] - The combined company will service customers in over 140 countries through around 400 production facilities [5] Group 3 - Amcor's stock has gained 15.8% over the past year, outperforming the industry growth of 12% [6] - Amcor currently holds a Zacks Rank of 3 (Hold), while competitors Applied Industrial Technologies, Inc. and RBC Bearings Incorporated have a Zacks Rank of 2 (Buy) [8]

Core Points - Amcor, a global leader in responsible packaging solutions, will present at the Bank of America 2025 Global Agriculture and Materials Conference on February 26, 2025 [1] - The presentation will feature CEO Peter Konieczny and CFO Michael Casamento in a fireside chat scheduled for 1.15pm Eastern time [1] - A replay of the presentation will be available on Amcor's investor relations website [2] Company Overview - Amcor specializes in developing and producing responsible packaging solutions across various materials for food, beverage, pharmaceutical, medical, home and personal-care products [2] - The company collaborates with leading global companies to protect products, differentiate brands, and enhance supply chains [2] - In fiscal year 2024, Amcor generated $13.6 billion in annual sales with a workforce of 41,000 across 212 locations in 40 countries [2]

Group 1 - Samuel Smith has extensive experience in dividend stock research and investment, having served as lead analyst and Vice President at several firms, and also runs a dividend investing YouTube channel [1] - Samuel leads the High Yield Investor investing group, collaborating with Jussi Askola and Paul R. Drake to balance safety, growth, yield, and value in investment strategies [2] - The High Yield Investor service provides real-money portfolios for core, retirement, and international investments, along with trade alerts, educational content, and a community chat room for investors [2]

Industry Overview - The Zacks Containers - Paper and Packaging industry is experiencing weak demand due to lower consumer spending amid inflation, but pricing actions are helping to offset supply-chain disruptions and elevated costs [1][6] - The industry is expected to benefit from rising e-commerce activities and increasing demand for sustainable packaging options due to environmental concerns [1][11] Market Dynamics - The industry has seen volume declines as customers reduce inventory, impacting top-line performance [6][7] - Supply-chain disruptions and rising costs for materials, labor, and transportation have led companies to implement cost-reduction measures [7] - E-commerce accounted for over 19% of global retail sales in 2023, with revenues projected to reach $4,324 billion by 2025, growing at a CAGR of 8% from 2025 to 2029 [8][9] Demand Trends - The industry has significant exposure (over 60%) to consumer-oriented markets such as food, beverages, and healthcare, ensuring stable demand across economic cycles [10] - There is a growing preference for eco-friendly packaging materials, driven by increased consumer awareness of environmental issues [11] Industry Performance - The Zacks Containers - Paper and Packaging industry currently ranks 176 out of 248 Zacks industries, placing it in the bottom 29% [12][13] - Over the past year, the industry has gained 9.6%, underperforming the S&P 500's growth of 21.8% but outperforming the Industrial Products sector's 6.9% increase [14] Valuation Metrics - The industry is trading at a forward 12-month EV/EBITDA ratio of 17.97, compared to the S&P 500's 13.96 and the Industrial Products sector's 19.85 [15] Company Highlights - **Sonoco Products Company**: Benefiting from the acquisition of Ball Metalpack, implementing price actions to counter inflation, and expects to achieve an annual EBITDA of $1 billion by 2026 [16][18] - **Packaging Corporation of America**: Reported year-over-year growth in Q4 2024, driven by higher volumes and pricing, with strong demand expected to continue in 2025 [19][20] - **Amcor plc**: Focused on expanding capacity in high-growth segments and has entered a merger agreement with Berry Global Group, expected to yield $650 million in benefits [22][23] - **AptarGroup**: Achieved growth in Q4 2024, particularly in the pharma and closures segments, with a focus on innovative products and acquisitions to drive future growth [25][26]

Core Viewpoint - The article discusses seven low-beta dividend stocks that yield between 5% and 14.1%, emphasizing their stability and lower volatility compared to the overall market [1][2][4]. Group 1: Low-Beta Dividend Stocks Overview - Low-beta stocks are characterized by their lower volatility, with betas below one, indicating they move less than the overall market [2][3]. - The focus is on dividend stocks that provide consistent payouts rather than dramatic price movements [2][4]. Group 2: Consumer Staples - Flowers Foods (FLO) has a yield of 5.0% and a five-year beta of 0.37, indicating it is less volatile than the market, although it faced challenges in 2023 due to legal settlements [5][6]. - ConAgra (CAG) offers a 5.6% yield with a five-year beta of 0.27, but has seen declining profits over the past three years, with 2024's net income significantly lower than in 2021 [8][10]. Group 3: Niche Dividend Stocks - Universal Corp. (UVV) operates in the tobacco supply sector, with one- and five-year betas of 0.14 and 0.78, respectively, indicating low volatility [12][14]. - The company is currently under scrutiny due to an internal investigation, which has delayed its quarterly earnings report [15]. Group 4: Healthcare Sector - Omega Healthcare Investors (OHI) has a yield of 7.1% and a one-year beta of 0.20, reflecting its stability in the healthcare real estate sector [20][21]. - The stock has recently pulled back amid broader real estate declines, but its valuation has improved, trading at 13 times next year's FFO estimates [22]. Group 5: Energy Sector - Chord Energy (CHRD) yields 9.1% with one- and five-year betas of 0.74 and 0.84, respectively, despite experiencing a significant drop in share price over the past year [23][24]. - The company maintains a strong balance sheet and generates substantial free cash flow, with a return of capital set at 75% of FCF [24][25]. Group 6: Shipping Sector - International Seaways (INSW) boasts a high yield of 14.1% with one- and five-year betas of -0.11 and 0.14, respectively, although its dividend is highly variable and dependent on business conditions [26][27]. - The stock's fundamentals are solid, with low capital expenditures and a low cash-flow breakeven, making it attractive if shipping rates rebound [29].

Financial Performance - Net sales for the three months ended December 31, 2024, were $3,241 million, a decrease of $10 million compared to $3,251 million in the same period of 2023[129] - Gross profit for the same period increased to $626 million, representing a gross margin of 19.3%, compared to $621 million and 19.1% in 2023[129] - Operating income rose to $297 million, or 9.2% of net sales, up from $242 million and 7.4% in the prior year[140] - Net income attributable to Amcor plc increased by $29 million, or 22%, reaching $163 million for the three months ended December 31, 2024[141] - Diluted earnings per share increased by $0.021, or 23%, to $0.113 for the three months ended December 31, 2024[142] - Adjusted EBIT increased by $2 million, or 5%, for the three months ended December 31, 2024, compared to the same period in 2023, with a 10% increase excluding negative currency impacts[146] - Gross profit increased by $5 million, or 1%, for the three months ended December 31, 2024, driven by cost savings initiatives and increased sales volumes, resulting in a gross profit margin of 19.3%[147] - Net income attributable to Amcor plc increased by $68 million, or 24%, for the six months ended December 31, 2024, driven by an increase in gross profit and lower restructuring expenses[152] - Diluted earnings per share increased by $0.046, or 23%, for the six months ended December 31, 2024, reflecting a 24% increase in net income available to ordinary shareholders[153] - Gross profit increased by $19 million, or 2%, for the six months ended December 31, 2024, resulting in a gross profit margin of 19.5%[158] Segment Performance - The Flexibles Segment reported net sales of $2,511 million, an increase of $30 million, or 1%, compared to $2,481 million in 2023[143] - The Rigid Packaging Segment experienced a net sales decline of $40 million, or 5%, with sales of $730 million for the three months ended December 31, 2024[145] - Flexibles Segment net sales increased by $13 million for the six months ended December 31, 2024, with adjusted EBIT rising by $17 million, or 3%[154][155] - Rigid Packaging Segment net sales decreased by $113 million, or 7%, for the six months ended December 31, 2024, with adjusted EBIT increasing by $2 million, or 2%[156][157] Cash Flow and Debt - Net cash provided by operating activities decreased by $69 million to $159 million for the six months ended December 31, 2024[187][188] - Net cash used in investing activities decreased by $122 million to $134 million for the six months ended December 31, 2024, primarily due to proceeds from the sale of Bericap[189] - Net debt as of December 31, 2024, was $6.5 billion, an increase from $6.1 billion as of June 30, 2024[195] - Total assets as of December 31, 2024, were $15.5 billion, compared to $15.3 billion as of June 30, 2024[180] - Total liabilities as of December 31, 2024, were $20.4 billion, an increase from $20.0 billion as of June 30, 2024[180] - The company has undrawn committed credit facilities available amounting to $2.1 billion as of December 31, 2024[196] - A commitment letter for a $3.0 billion senior unsecured bridge loan facility was entered into to fund the repayment of certain outstanding debt of Berry upon the closing of the Merger[198] - As of December 31, 2024, the Company had no outstanding borrowings on the Bridge Facility, as the commitment had not been converted[199] Mergers and Restructuring - A merger agreement with Berry Global Group, Inc. was approved, with the transaction expected to close in mid-2025, subject to shareholder and regulatory approvals[131] - The company expects to realize an annualized pre-tax benefit of approximately $50 million from restructuring actions related to the 2023 Restructuring Plan by the end of fiscal year 2025[136] - Restructuring and other activities, net increased by $9 million for the three months ended December 31, 2024, primarily due to transaction costs related to the pending merger with Berry Global Group, Inc.[148] Market Conditions - The company continues to face challenges from softer consumer demand and higher costs, but has seen overall volume growth in the first half of fiscal year 2025[134] - Other income/(expenses), net changed by $54 million for the three months ended December 31, 2024, mainly due to lower negative impacts from inflationary accounting in Argentina and a gain on the sale of a 50% equity interest in Bericap North America[149] - Net sales decreased by $100 million, or 1%, for the six months ended December 31, 2024, with an unfavorable price/mix impact of approximately 3% partially offset by higher sales volumes of approximately 2%[151] Shareholder Returns - A cash dividend of $0.1250 per ordinary share was declared and paid during the three months ended September 30, 2024, and a cash dividend of $0.1275 per ordinary share was declared and paid during the three months ended December 31, 2024[200] - A $100 million buyback of ordinary shares and/or CHESS Depositary Instruments was approved, with $39 million remaining as of February 6, 2024, but no shares were repurchased during the six months ended December 31, 2024[202] - Cash outflows for the purchase of treasury shares were $47 million and $48 million during the six months ended December 31, 2024, and 2023, respectively[203] - As of December 31, 2024, the Company held treasury shares at a cost of $10 million, representing approximately 1 million shares[203] Risk Management - There have been no material changes in market risk during the three months ended December 31, 2024[204] - The Company has received investment grade credit ratings from two internationally recognized credit rating agencies, which facilitate issuing debt at favorable interest rates[201] - The Company entered into an interest rate swap contract for a notional amount of $400 million, paying a fixed rate of 4.30%[192]

Core Viewpoint - Amcor Plc reported second-quarter fiscal 2024 adjusted earnings per share (EPS) of 16 cents, meeting the Zacks Consensus Estimate, with revenues slightly declining year over year due to various unfavorable impacts [1][3]. Financial Performance - Adjusted EPS for the quarter was 16 cents, consistent with the previous year [1] - Net earnings per share, including special items, increased to 11 cents from 9 cents in the prior-year quarter [2] - Revenues decreased by 0.3% year over year to $3.24 billion, missing the Zacks Consensus Estimate of $3.44 billion [3] - The cost of sales fell by 0.6% to $2.62 billion, while gross profit rose by 0.8% to $626 million, resulting in a gross margin of 19.3% [4] - Adjusted operating income increased by 3% to $363 million, with an adjusted operating margin of 11.2% [5] Segment Performance - Flexibles segment net sales rose by 1.2% to $2.51 billion, with a volume increase of 3% [6] - Rigid Packaging segment reported a 5% decline in net sales to $730 million, with a volume decrease of 1% [8] Cash Flow and Balance Sheet - Cash and cash equivalents at the end of the fiscal second quarter were $445 million, down from $588 million at the end of fiscal 2024 [10] - Net debt increased to $6.5 billion from $6.11 billion as of June 30, 2024 [10] Dividend and Guidance - The board declared a quarterly cash dividend of 12.75 cents per share, payable on March 18, 2025 [11] - Adjusted EPS guidance for fiscal year 2025 is projected to be between 72-76 cents, with adjusted free cash flow expected to be $900-$1,000 million [12] Strategic Developments - Amcor announced a merger agreement with Berry Global Group, expected to close in mid-2025, aiming to enhance growth by focusing on faster-growing, better-margin categories [13][15] - The merger is anticipated to yield $650 million in benefits from identified costs, growth, and financial synergies by the end of the third year post-closing [15] Stock Performance - Over the past year, Amcor's shares have increased by 3.7%, compared to the industry's growth of 11.3% [16]