Amcor(US:AMCR)2025-02-05 11:07Financial 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]