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Amcor(AMCR) - 2025 Q2 - Quarterly Report
AMCRAmcor(AMCR)2025-02-05 11:07

Financial Performance - Net sales for the three months ended December 31, 2024, were 3,241million,adecreaseof3,241 million, a decrease of 10 million compared to 3,251millioninthesameperiodof2023[129]−Grossprofitforthesameperiodincreasedto3,251 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 621millionand19.1621 million and 19.1% in 2023[129] - Operating income rose to 297 million, or 9.2% of net sales, up from 242millionand7.4242 million and 7.4% in the prior year[140] - Net income attributable to Amcor plc increased by 29 million, or 22%, reaching 163millionforthethreemonthsendedDecember31,2024[141]−Dilutedearningspershareincreasedby163 million for the three months ended December 31, 2024[141] - Diluted earnings per share increased by 0.021, or 23%, to 0.113forthethreemonthsendedDecember31,2024[142]−AdjustedEBITincreasedby0.113 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 5million,or15 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,or230.046, 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 2,511million,anincreaseof2,511 million, an increase of 30 million, or 1%, compared to 2,481millionin2023[143]−TheRigidPackagingSegmentexperiencedanetsalesdeclineof2,481 million in 2023[143] - The Rigid Packaging Segment experienced a net sales decline of 40 million, or 5%, with sales of 730millionforthethreemonthsendedDecember31,2024[145]−FlexiblesSegmentnetsalesincreasedby730 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 17million,or317 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 2million,or22 million, or 2%[156][157] Cash Flow and Debt - Net cash provided by operating activities decreased by 69 million to 159millionforthesixmonthsendedDecember31,2024[187][188]−Netcashusedininvestingactivitiesdecreasedby159 million for the six months ended December 31, 2024[187][188] - Net cash used in investing activities decreased by 122 million to 134millionforthesixmonthsendedDecember31,2024,primarilyduetoproceedsfromthesaleofBericap[189]−NetdebtasofDecember31,2024,was134 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 6.1billionasofJune30,2024[195]−TotalassetsasofDecember31,2024,were6.1 billion as of June 30, 2024[195] - Total assets as of December 31, 2024, were 15.5 billion, compared to 15.3billionasofJune30,2024[180]−TotalliabilitiesasofDecember31,2024,were15.3 billion as of June 30, 2024[180] - Total liabilities as of December 31, 2024, were 20.4 billion, an increase from 20.0billionasofJune30,2024[180]−Thecompanyhasundrawncommittedcreditfacilitiesavailableamountingto20.0 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 3.0billionseniorunsecuredbridgeloanfacilitywasenteredintotofundtherepaymentofcertainoutstandingdebtofBerryupontheclosingoftheMerger[198]−AsofDecember31,2024,theCompanyhadnooutstandingborrowingsontheBridgeFacility,asthecommitmenthadnotbeenconverted[199]MergersandRestructuring−AmergeragreementwithBerryGlobalGroup,Inc.wasapproved,withthetransactionexpectedtocloseinmid−2025,subjecttoshareholderandregulatoryapprovals[131]−Thecompanyexpectstorealizeanannualizedpre−taxbenefitofapproximately3.0 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 9millionforthethreemonthsendedDecember31,2024,primarilyduetotransactioncostsrelatedtothependingmergerwithBerryGlobalGroup,Inc.[148]MarketConditions−Thecompanycontinuestofacechallengesfromsofterconsumerdemandandhighercosts,buthasseenoverallvolumegrowthinthefirsthalfoffiscalyear2025[134]−Otherincome/(expenses),netchangedby9 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 100million,or1100 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 0.1275perordinarysharewasdeclaredandpaidduringthethreemonthsendedDecember31,2024[200]−A0.1275 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 39millionremainingasofFebruary6,2024,butnoshareswererepurchasedduringthesixmonthsendedDecember31,2024[202]−Cashoutflowsforthepurchaseoftreasuryshareswere39 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 48millionduringthesixmonthsendedDecember31,2024,and2023,respectively[203]−AsofDecember31,2024,theCompanyheldtreasurysharesatacostof48 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]