Amcor(US:AMCR)2025-11-06 21:17Financial Performance - Net sales for the three months ended September 30, 2025, increased by $2,392 million, or 71%, compared to the same period in 2024, reaching $5,745 million[139]. - Gross profit for the same period was $1,124 million, representing a gross margin of 19.6%[129]. - Net income attributable to Amcor plc increased by $71 million, or 37%, to $262 million for the three months ended September 30, 2025[140]. - Adjusted net income for the three months ended September 30, 2025, was $448 million, compared to $234 million in the same period of 2024[159]. - Diluted earnings per share decreased by $0.019, or 14%, to $0.113 due to a 60% increase in the diluted weighted average number of shares outstanding[141]. Segment Performance - The Global Flexible Packaging Solutions segment reported net sales of $3,257 million, a 28% increase compared to the prior year, with adjusted EBIT of $426 million[142]. - The Global Rigid Packaging Solutions segment saw net sales rise by $1,687 million, or 211%, with adjusted EBIT increasing by $233 million, or 377%[144]. Expenses and Costs - SG&A expenses rose to $435 million, up $159 million from $276 million in the prior year, with SG&A as a percentage of net sales decreasing to 7.6% from 8.2%[147]. - Amortization of acquired intangible assets increased by $94 million, or 241%, reaching $133 million compared to $39 million in the previous year, representing 2.3% of net sales[148]. - Research and development expenses increased by $18 million, or 64%, totaling $46 million, maintaining a consistent 0.8% of net sales[149]. - Restructuring, transaction, and integration expenses rose by $69 million to $75 million, with net expenses as a percentage of net sales increasing to 1.3% from 0.2%[150]. - Interest expense surged by $82 million to $168 million, accounting for 2.9% of net sales, up from 2.6%[153]. Strategic Initiatives - The merger with Berry Global Group, completed on April 30, 2025, involved a purchase consideration of $10.4 billion, excluding assumed debt of approximately $5.2 billion[131]. - The Berry Plan aims to achieve approximately $530 million in pre-tax synergies by the end of fiscal year 2028, with an estimated total pre-tax cash cost of $280 million[132]. - The company is reviewing strategic alternatives for businesses with combined sales of $2.5 billion to maximize portfolio value[134]. Market Conditions - Market conditions remain challenging, with softer consumer demand and higher costs impacting financial results[135]. Cash Flow and Debt - Net cash used in operating activities decreased by $136 million to $(133) million for the three months ended September 30, 2025, compared to $(269) million for the same period in 2024[177]. - Net cash used in investing activities increased by $71 million to $(226) million for the three months ended September 30, 2025, primarily due to higher net purchases of property, plant, and equipment[178]. - Net cash provided by financing activities increased by $121 million to $358 million for the three months ended September 30, 2025, driven by higher net borrowings of commercial paper[179]. - As of September 30, 2025, the company's net debt was $14.0 billion, an increase from $13.3 billion as of June 30, 2025[184]. Dividend Information - The company declared and paid a cash dividend of $0.1275 per ordinary share during the three months ended September 30, 2025[186]. Obligor Group Performance - Obligor Group 1 reported total net sales of $443 million for the three months ended September 30, 2025, while Obligor Group 2 reported $202 million, and Obligor Group 3 also reported $443 million[169]. - Gross profit for Obligor Group 1 was $100 million, Obligor Group 2 was $42 million, and Obligor Group 3 was $100 million for the same period[169]. - Net income attributable to Obligor Group was $183 million for Group 1, $152 million for Group 2, and $183 million for Group 3[169]. - Total assets for Obligor Group 1 were $18,085 million, Group 2 was $3,086 million, and Group 3 was $18,085 million as of September 30, 2025[170]. - Total liabilities for Obligor Group 1 were $28,166 million, Group 2 was $10,400 million, and Group 3 was $27,126 million as of September 30, 2025[170].