Amcor(US:AMCR)2025-02-04 11:14Financial Performance - Adjusted EPS for fiscal 2025 is projected to be between 72-76 cents per share, with Adjusted Free Cash Flow expected to be $900-1,000 million[2]. - Net sales for the first half of fiscal 2025 were $6,594 million, a 1% decrease compared to the previous year, impacted by foreign exchange rates[11]. - Adjusted EBIT for the first half of fiscal 2025 was $728 million, reflecting a 4% increase on a comparable constant currency basis[13]. - The company reported a GAAP net income of $354 million for the first half of fiscal 2025, with diluted EPS of 24.4 cents[4]. - Overall volume growth for the first half of fiscal 2025 was up 2%, with price/mix having an unfavorable impact of approximately 3%[12]. - On a comparable constant currency basis, net sales were approximately 3% lower than last year, reflecting approximately 2% lower volumes and an unfavorable price/mix impact of approximately 1%[35]. - Adjusted EBIT of $115 million was approximately 6% higher than last year on a comparable constant currency basis, with an adjusted EBIT margin of 7.5%, which is 60 basis points higher than last year[36]. - For the six months ended December 31, 2024, adjusted free cash outflow was $38 million, compared to an inflow of $52 million last year[40]. - The company reported a comparable constant currency growth of -1% for total net sales in the six months ended December 31, 2024[65]. - Adjusted EBITDA for the six months ended December 31, 2024, was $919 million, slightly up from $913 million in 2023, indicating a growth of 0.7%[70]. - Adjusted EBIT for the six months ended December 31, 2024, reached $728 million, compared to $709 million in 2023, reflecting a growth of 2.7%[75]. - The total EBIT for the six months ended December 31, 2024, was $608 million, an increase from $510 million in the same period of 2023, showing a growth of 19.2%[75]. Segment Performance - The Flexibles segment achieved net sales of $5,062 million, with a 3% increase in Adjusted EBIT to $651 million on a comparable constant currency basis[29]. - The Rigid Packaging segment reported net sales of $730 million, a 5% decrease from the previous year, with an Adjusted EBIT of $53 million, up 10% on a comparable constant currency basis[33]. - North America beverage comparable net sales and volumes declined at a mid single digit rate, while Latin America saw comparable net sales up mid single digits due to favorable price/mix benefits[35]. - The adjusted EBIT margin for the Rigid segment was 12.9% for the six months ended December 31, 2024, compared to 12.6% in 2023[75]. Cash Flow and Debt - Net debt was $6,496 million at December 31, 2024, with leverage measured at 3.3 times adjusted trailing twelve month EBITDA, expected to be at or below 3.0x by June 30, 2025[40]. - The net debt increased from $6,111 million as of June 30, 2024, to $6,496 million by December 31, 2024[77]. - The company reported an adjusted free cash flow of $(38) million for the six months ended December 31, 2024, down from $52 million in 2023[70]. Dividends and Shareholder Returns - The company declared a quarterly cash dividend of 12.75 cents per share, an increase from 12.5 cents per share in the same quarter last year[7]. - Basic earnings per share attributable to Amcor for the three months ended December 31, 2024, rose to $0.113, compared to $0.093 for the same period in 2023, marking a growth of 21.5%[60]. - The company reported an adjusted EPS of 24.4 US cents for the six months ended December 31, 2024, up from 19.8 US cents in 2023, marking a 23.2% increase[70]. Strategic Initiatives - The combination with Berry Global is expected to generate $650 million in identified synergies and enhance growth opportunities[3]. - The company continues to expect a range of factors that create uncertainty in estimating future financial results, including the potential impact from the merger with Berry Global[41]. - The company is focused on developing responsible packaging solutions and aims to increase the recyclability and use of recycled content in its products[47]. Miscellaneous - In the December 2024 quarter, net sales were $3,241 million, consistent with the previous year, despite a 1% negative impact from foreign exchange rates[14]. - Amcor's net sales for the three months ended December 31, 2024, were $3,241 million, a decrease of 0.3% compared to $3,251 million in the same period of 2023[60]. - Gross profit for the six months ended December 31, 2024, increased to $1,285 million, up from $1,266 million in the same period of 2023, reflecting a growth of 1.5%[60]. - Operating income for the three months ended December 31, 2024, was $297 million, representing a 22.8% increase from $242 million in the same period of 2023[60]. - Cash and cash equivalents at the end of the period increased to $445 million from $430 million at the end of the previous period[62]. - Amcor's net cash provided by operating activities for the six months ended December 31, 2024, was $159 million, down from $228 million in the same period of 2023[62]. - The company incurred restructuring and related expenses of $29 million in the six months ended December 31, 2024, down from $52 million in 2023[70]. - The impact of highly inflationary accounting was $5 million for the six months ended December 31, 2024, compared to $51 million in 2023[70]. - The conference call to discuss these results is scheduled for February 4, 2025, at 8:00 am US Eastern Standard Time[42].