Financial Data and Key Metrics Changes - Adjusted EPS for Q1 2026 was $0.193, an 18% increase compared to the previous year, exceeding the midpoint of guidance [6][10] - EBIT for the quarter was $687 million, up approximately 4% on a comparable basis, with an EBIT margin of 12%, which is 110 basis points higher than last year [11][10] - Free cash outflow for Q1 was $343 million, representing a year-over-year improvement of over $160 million prior to acquisition-related costs [20] Business Line Data and Key Metrics Changes - In the global flexible packaging solutions segment, net sales increased by 25% on a constant currency basis, primarily due to the Berry acquisition, but were down 2% on a comparable basis [16] - Adjusted EBIT for the flexible packaging segment rose 28% on a constant currency basis to $426 million, driven by acquired earnings [17] - In the global rigid packaging solutions segment, net sales increased by 205% on a constant currency basis, with adjusted EBIT of $295 million, a 365% increase [19] Market Data and Key Metrics Changes - Emerging markets performed better than developed markets, with solid growth in Asia, while volumes in developed markets were down low single digits [10][16] - Demand in North America and Europe was down low single digits, with specific weakness noted in the unconverted film category in Europe [16][35] Company Strategy and Development Direction - The company is focused on delivering core business execution, integrating Berry, realizing synergies, and optimizing its portfolio [7][9] - The board approved an increase in the quarterly dividend to $0.13 per share, reflecting a commitment to shareholder returns [9][30] - Strategic initiatives include defining the core portfolio, exploring alternatives for non-core assets, and leveraging combined capabilities for growth [25][26] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in delivering at least $260 million in synergies in Fiscal 2026, independent of macroeconomic improvements [9][30] - The company anticipates strong earnings and cash flow growth, with EPS growth guidance reaffirmed at 12%-17% for the fiscal year [22][30] - Management acknowledged challenges in consumer affordability impacting certain categories, particularly in Europe [35][42] Other Important Information - The company has identified opportunities for improvement in safety metrics, with 89% of combined sites injury-free in Q1 [7] - The transition of CFO Michael Casamento to an advisory role was noted, with Steve Sugar set to join as the new CFO [13][14] Q&A Session Summary Question: Concerns about volume decline in flexible business - Management noted that volumes were expected to be similar to Q4, with specific weakness in the unconverted film category in Europe due to general market softness [35][36] Question: Update on North American beverage business - Management reported good operational progress, with profitability increased sequentially despite volume softness, and ongoing exploration of strategic alternatives for the non-core business [38][39] Question: Volume performance in high-growth categories - Focus categories generally performed better than the overall business, with strong growth in pet care and dairy, while some categories like meat faced challenges [41][42] Question: Synergy benefits from combining businesses - Management highlighted strong synergy delivery and confidence in achieving at least $260 million in synergies, with ongoing momentum in the pipeline [51][52] Question: Update on private label exposure - Management acknowledged underrepresentation in private label markets and identified it as a focus area for future growth [75][76] Question: Prospects for healthcare business - Management expressed optimism for continued improvement in the healthcare segment, particularly in North America, while noting flat performance in Europe [80]

Financial Data and Key Metrics Changes - Adjusted EPS for Q1 2026 was $0.193, an 18% increase compared to the previous year, exceeding the midpoint of guidance [5][10] - EBIT for the quarter was $687 million, up approximately 4% on a comparable basis, with an EBIT margin of 12%, which is 110 basis points higher than last year [11][10] - Free cash outflow for Q1 was $343 million, representing a year-over-year improvement of over $160 million before acquisition-related costs [19] Business Line Data and Key Metrics Changes - In the global flexible packaging solutions segment, net sales increased by 25% on a constant currency basis, primarily due to the Berry acquisition, but were down 2% on a comparable basis [16] - Adjusted EBIT for the flexible packaging segment rose 28% on a constant currency basis to $426 million, driven by acquired earnings [17] - In the global rigid packaging solutions segment, net sales increased by 205% on a constant currency basis, but were lower than the prior year on a comparable basis, reflecting a 1% volume decline [18][19] Market Data and Key Metrics Changes - Emerging markets performed better than developed markets, with solid growth in Asia, while developed markets in North America and Europe saw low single-digit declines in demand [10][16] - Volumes in focus categories such as pet care and dairy showed good growth, while broader nutrition categories experienced weakness [17][42] Company Strategy and Development Direction - The company is focused on delivering core business execution, integrating Berry, realizing synergies, and optimizing its portfolio [6][9] - The board approved an increase in the quarterly dividend to $0.13 per share, reflecting a commitment to returning value to shareholders [9][29] - The company aims to achieve at least $260 million in synergies in Fiscal 2026, with a total of $650 million expected through Fiscal 2028 [12][30] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in delivering strong earnings and free cash flow growth, with EPS growth guidance of 12%-17% for Fiscal 2026 [5][21] - The company is well-positioned to achieve its financial objectives without relying on improvements in the macroeconomic environment [9][30] - Management acknowledged challenges in consumer affordability and market softness, particularly in Europe, affecting flexible packaging demand [34][35] Other Important Information - The company has identified opportunities for improvement in safety metrics, with 89% of combined sites remaining injury-free in Q1 [6] - The company is exploring strategic alternatives for non-core assets and has entered agreements to sell two businesses for approximately $100 million [8][9] Q&A Session Summary Question: What is driving the recent decline in flexible business volumes? - Management noted that the decline is primarily due to weakness in the unconverted film category in Europe, reflecting general market softness [34][35] Question: Any updates on the North American beverage business? - Management reported good operational progress and increased profitability, while exploring strategic alternatives for the non-core beverage business [37][39] Question: How are the focus categories performing? - Focus categories generally performed better than the overall business, with strong growth in pet care and dairy, while healthcare showed mixed results [41][42] Question: Can you elaborate on synergy benefits from the Berry acquisition? - Management highlighted that synergies are coming through and are expected to build, with a strong pipeline for revenue synergies [50][51] Question: What is the outlook for healthcare in 2026? - Management expects continued improvement in healthcare performance, particularly in North America, while European performance remains flat [74][75]

Core Insights - Amcor's acquisition of Berry Global is expected to significantly enhance its value creation capabilities for customers and shareholders, with projected adjusted EPS growth of 12-17% and free cash flow of $1.8 to $1.9 billion for fiscal 2026 [1][8][44] Financial Performance - For the three months ended June 30, 2025, Amcor reported net sales of $5,082 million, a 43% increase compared to the previous year, while net income was a loss of $39 million due to acquisition-related costs [3][5] - Adjusted EBITDA for the same period was $789 million, up 43%, and adjusted EBIT was $611 million, up 34% [5][20] - For the twelve months ended June 30, 2025, net sales reached $15,009 million, an 11% increase, with adjusted net income of $1,136 million, reflecting a 13% growth [5][24] Segment Performance - The Global Flexible Packaging Solutions segment saw net sales of $3,205 million, a 19% increase, while the Global Rigid Packaging Solutions segment reported net sales of $1,877 million, a 121% increase [25][33] - Adjusted EBIT for the Flexible Packaging segment was $450 million, up 12%, and for the Rigid Packaging segment, it was $204 million, up 173% [29][35] Synergy and Integration - Amcor anticipates achieving $650 million in total pre-tax synergy benefits from the Berry Global acquisition by the end of fiscal 2028, with $260 million expected in fiscal 2026 [10][44] - Integration efforts have been progressing well, with positive customer feedback leading to business wins linked to the acquisition [2][10] Portfolio Optimization - Amcor has identified a $20 billion core portfolio focused on consumer packaging and dispensing solutions for nutrition and health, aiming to enhance growth in attractive categories [11][12] - The company is exploring alternatives for approximately $2.5 billion in annual sales from businesses less aligned with the core portfolio [12][13] Shareholder Returns - The Board of Directors declared a quarterly cash dividend of 12.75 cents per share, increasing the annual dividend for fiscal 2025 to 51.0 cents per share [14][15]