Financial Data and Key Metrics Changes - The company expects adjusted EPS growth of 12% to 17% in fiscal 2026, with free cash flow anticipated to double to €1.8 to €1.9 billion [6][30] - Annual adjusted free cash flow for fiscal 2025 was $926 million, with capital expenditures of $580 million, up from the previous year [26][27] - Leverage was 3.5 times at the end of the quarter, expected to decrease to approximately 3.1 to 3.2 times over the next twelve months [27][28] Business Line Data and Key Metrics Changes - In the Global Flexible Packaging Solutions segment, combined volumes were down approximately 1.5%, with North America experiencing low single-digit declines [22] - The Global Rigid Packaging Solutions segment saw net sales increase by 121% on a constant currency basis, with overall volumes down approximately 2% [24] - Adjusted EBIT for Global Flexible Packaging was £450 million, up 11% on a constant currency basis, while adjusted EBIT for Global Rigid Packaging was £400 million, up 173% [23][25] Market Data and Key Metrics Changes - North American beverage business volumes were below expectations, with operating challenges leading to elevated costs [25][72] - Volume performance outside North America was broadly flat, with growth in Latin America and Asia offsetting modest declines in Europe [22][43] - The company identified several businesses with combined annual sales of approximately $2.5 billion that are less aligned with the core portfolio and will explore alternatives to maximize value [18][19] Company Strategy and Development Direction - The company is focused on integrating the Berry acquisition and capturing synergies, with a target of $650 million in total synergies through fiscal 2028 [10][31] - A strategic portfolio review has been conducted to define the core portfolio, with plans to explore alternatives for businesses less aligned with core operations [10][18] - The company aims to enhance focus on attractive nutrition and health markets, contributing to long-term shareholder value [31][19] Management's Comments on Operating Environment and Future Outlook - Management noted that the current macroeconomic environment is challenging, with no meaningful rebound in consumer demand anticipated [28][30] - The company is confident in delivering significant synergies from the Berry acquisition and expects to stabilize the North American beverage business before considering divestment [31][85] - Management emphasized the importance of customer support in any strategic decisions regarding non-core businesses [86] Other Important Information - The company has already taken steps to reduce headcount by more than 200 and has identified sites for closure to improve efficiency [15][66] - The integration of the Berry and Amcor businesses is progressing well, with positive feedback from customers and early business wins [14][16] Q&A Session All Questions and Answers Question: Impact of potential beverage strategic considerations on procurement synergies - Management believes that the potential divestment of the North American Beverage business will not materially impact procurement savings, which are expected to remain at $650 million [38] Question: Top line trends and volume performance - Management indicated that weakness in North America drove softer volume performance, with overall consumer sentiment affecting buying behaviors [44][45] Question: Details on the $1 billion under review - The review includes 10 businesses distributed between the legacy Amcor and Berry portfolios, assessed based on growth, margin profiles, and market structure [49][50] Question: Market share shifts and destocking - Management clarified that market share shifts are not the primary issue, and destocking has not been a significant factor in recent performance [56][57] Question: Context for the $260 million in synergies - Management reaffirmed the $260 million in synergies for fiscal 2026, with expectations for 40% of total synergies to be realized in the first year [64][66] Question: Operational issues within the North American beverage business - Management acknowledged dissatisfaction with the North American beverage business performance, attributing challenges to service issues and elevated costs [71][72] Question: Volume growth embedded in EPS forecast - Management anticipates flat volumes for fiscal 2026, with EPS guidance reflecting subdued demand conditions [78][80] Question: Process for divesting the North American beverage business - Management plans to stabilize the North American beverage business before assessing divestment options, emphasizing customer support in the process [85][86] Question: Timing of growth investments or share buybacks - Management is focused on reducing leverage to the target range of 2.5 to 3 times before considering share buybacks or growth investments [90][93] Question: Accretion from the Berry deal - Management indicated that the Berry combination contributed approximately half to 1 cent to EPS, with expectations for continued accretion from synergy delivery [95][97]

Financial Data and Key Metrics Changes - The acquisition of Berry Global has significantly impacted financial metrics, with adjusted EPS growth expected to be between 12% to 17% in fiscal 2026 and free cash flow anticipated to double to €1.8 to €1.9 billion [5][28] - Annual adjusted free cash flow for fiscal 2025 was reported at $926 million, with capital expenditures for the year at $580 million, expected to rise to $850 million to $900 million in fiscal 2026 [26][27] - Leverage was reported at 3.5 times at the end of the quarter, with expectations to decrease to approximately 3.1 to 3.2 times over the next twelve months [27][28] Business Line Data and Key Metrics Changes - In the Global Flexible Packaging Solutions segment, combined volumes were down approximately 1.5%, with North America experiencing low single-digit declines due to softer demand [21][22] - The Global Rigid Packaging Solutions segment saw net sales increase by 121% on a constant currency basis, but volumes were down approximately 2% overall, reflecting ongoing soft consumer demand [23][24] - The North American Beverage business faced operational challenges leading to elevated costs, with a decline in performance contributing to a $20 million drop compared to the previous year [25][70] Market Data and Key Metrics Changes - Volume performance in North America was a major source of weakness, with overall consumer sentiment affecting buying behaviors [42][43] - Emerging markets, particularly in Latin America and Asia, showed growth that offset modest declines in Europe [21][22] - The company noted that while they are gaining market share in certain categories, overall volume trends remain subdued due to macroeconomic factors [44][55] Company Strategy and Development Direction - The company is focused on integrating the Berry acquisition and optimizing its portfolio, with a strategic review identifying businesses less aligned with core operations [8][17] - A commitment to delivering $650 million in total synergies through fiscal 2028, with $260 million expected in fiscal 2026, reflects the company's integration strategy [15][31] - The company aims to enhance focus on attractive nutrition and health markets while exploring alternatives for non-core businesses [18][31] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving strong earnings and cash flow growth in fiscal 2026, despite not anticipating a meaningful rebound in consumer demand [28][29] - The operational performance of the North American Beverage business is being closely monitored, with plans to stabilize the business before considering divestment [80][82] - Management acknowledged challenges in the North American Beverage segment but remains optimistic about the overall integration and synergy realization [68][102] Other Important Information - The company reported a total recordable incident rate (TRIR) of 0.27 for fiscal 2025, with 68% of sites injury-free [6] - The integration efforts have already led to the closure of one site and the approval of four additional closures to improve operational efficiency [14][15] Q&A Session Summary Question: Impact of potential beverage strategic considerations on procurement synergies - Management indicated that the potential divestment of the North American Beverage business would not materially impact procurement savings, expecting to maintain the estimated $650 million in synergies [38] Question: Top line trends and volume performance - Management noted that the volume performance was weaker than expected, primarily due to North America, while emerging markets showed growth [42][43] Question: Details on the $1 billion under review - Management clarified that the $1 billion comprises ten businesses across both legacy companies, with criteria based on growth potential, industry structure, and market leadership [47][48] Question: Operational issues within the Rigid Beverages business - Management acknowledged dissatisfaction with the North American beverage business performance, attributing challenges to service issues and elevated costs [68][70] Question: EPS forecast and volume growth expectations - Management expects flat volumes for fiscal 2026, with EPS guidance of $0.80 to $0.83, reflecting subdued demand [76][77] Question: Timing of potential growth investments or share buybacks - Management emphasized the focus on reducing leverage to the target range of 2.5 to 3 times before considering share buybacks or growth investments [88][90]

Financial Performance - Q1 2025 revenues reached $354.588 million[73], a nearly flat year-over-year performance compared to pro forma Q1 2024 revenues of $355.1 million[28] - Adjusted EBITDA for Q1 2025 was $92.112 million[73], resulting in an Adjusted EBITDA Margin of 26%[73] - Adjusted Diluted Earnings Per Share for Q1 2025 remained at $0.17[20, 32], consistent with Q1 2024[32] - Adjusted Operating Cash Flow for Q1 2025 was $33.3 million[23, 43, 47], after adjusting for $13.8 million in cash costs related to the Sterling acquisition and integration[23, 43] Synergies and Cost Management - $37 million in run rate synergies were actioned as of March 31, 2025[37] - The company expects to action a total run rate synergy target of $60 million to $70 million within two years[37] - $12 million in acquisition close-to-date synergies were realized as of March 31, 2025[37] Growth Drivers and Retention - Combined new logo, upsell, and cross-sell contributed 9.3% to revenue growth[34] - Retention remained high at 96%[22, 34] Guidance and Outlook - The company reaffirmed its full-year 2025 guidance, projecting total revenues of $1.5 billion to $1.6 billion[18, 50] - Full-year 2025 Adjusted EBITDA is projected to be $410 million to $450 million, with an Adjusted EBITDA Margin of approximately 27% to 28%[50]