Amcor(US:AMCR)2025-05-01 10:09Financial 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].