Amcor closes Berry Global merger, reports third quarter result and updates fiscal 2025 outlook

• Adjusted EPS of 72-74 cents per share;  Adjusted Free Cash Flow of $900-1,000 million.

ZURICH, April 30, 2025 /PRNewswire/ --

Shareholder returns

Dividend

The Amcor Board of Directors today declared a quarterly cash dividend of 12.75 cents per share (compared with 12.5 cents per share in the same quarter last year). The dividend will be paid in US dollars to holders of Amcor's ordinary shares trading on the NYSE. Holders of CDIs trading on the ASX will receive an unfranked dividend of 19.97 Australian cents per share, which reflects the quarterly dividend of 12.75 cents per share converted at an AUD:USD average exchange rate of 0.6385 over the five trading days ended April 28, 2025.

The ex-dividend date will be May 21, 2025 for holders of CDIs trading on the ASX and May 22, 2025 for holders of shares trading on the NYSE.  For all shareholders, the record date will be May 22, 2025 and the payment date will be June 10, 2025. 

Financial results - Nine Months Ended March 31, 2025

Segment information

Nine months ended March 31, 2025:

Net sales of $9,927 million were 2% lower than last year on a reported basis, including an unfavorable impact of approximately 1% related to movements in foreign exchange rates and an unfavorable impact of approximately 1% related to items affecting comparability.  The pass through of lower raw material costs had no material impact on net sales.  

Volumes were up 1% compared with the same nine month period last year.  Price/mix had an unfavorable impact of approximately 1%, primarily due to expected lower volumes in high value healthcare categories in the first half of the year.  On a comparable constant currency basis, net sales were in line with last year.

Adjusted EBIT of $1,112 million was 3% higher than last year on a comparable constant currency basis reflecting higher volumes and strong cost performance, partly offset by unfavorable impacts from price/mix.  Adjusted EBIT margin improved to 11.2%, a 30 basis point increase over the prior year.

March 2025 quarter:

Net sales of $3,333 million were 2% lower than last year on a reported basis, including an unfavorable impact of approximately 2% related to movements in foreign exchange rates, an unfavorable impact from items affecting comparability of approximately 1% and a favorable impact of approximately 1% related to the pass through of higher raw material costs of approximately $45 million.

Volumes were in line with last year with weak consumer demand offset by modest share gains.  By region, volumes generally softened sequentially in North America, including in the North America beverage business.    Across all other regions, volume growth in the Flexibles and Rigid Packaging segments remained in the low to mid single digit range.  Price/mix had a marginally favorable impact on net sales, reflecting improved volume growth in high value healthcare categories as expected. On a comparable constant currency basis, net sales were 0.4% higher than last year.

Adjusted EBIT of $384 million was 0.4% higher than last year on a comparable constant currency basis with benefits from continued strong cost performance partly offset by unfavorable earnings impacts from price/mix.  Adjusted EBIT margin of 11.5% was in line with last year.

Net sales of $2,605 million were up modestly compared with last year on a reported basis, including an unfavorable impact of approximately 2% related to movements in foreign exchange rates and a favorable impact of approximately 2% related to the pass through of higher raw material costs. 

Volumes were up approximately 1% compared with the prior year with modest share gains in several categories including healthcare and protein partly offset by weaker consumer demand primarily in North America.  Volumes generally softened sequentially in North America while volume growth across all other key regions remained in the low to mid single digit range.  As expected, destocking in healthcare categories is essentially complete and March quarter volumes increased compared with last year.  Price/mix had a favorable impact on net sales of approximately 1%, reflecting improved growth in high value healthcare categories, as expected.  On a comparable constant currency basis net sales were 1.4% higher than last year.

In North America, net sales declined at low single digit rates on a comparable constant currency basis driven by lower volumes.  Volumes were higher across categories including healthcare, fresh and frozen foods, meat and liquids. This was more than offset by lower volumes in categories including home & personal care, beverage overwrap and confectionary.

In Europe, net sales grew at mid single digit rates on a comparable constant currency basis driven by low single digit volume growth and favorable price/mix.  Volumes were higher in the pet care, medical, single serve coffee, home & personal care and dairy end markets and this was partly offset by lower volumes in snacks & confectionary.

Across Asia, net sales grew at mid single digit rates on a comparable constant currency basis primarily driven by continued mid to high single digit volume growth in China and India.  In Latin America, net sales grew at low single digit rates on a comparable constant currency basis primarily driven by volume growth in Peru and Chile.

Adjusted EBIT of $357 million was 2% higher than last year on a comparable constant currency basis, driven by higher volumes and strong cost performance, partly offset by unfavorable earnings impacts from price/mix.  Adjusted EBIT margin of 13.7% was in line with last year.

Net sales of $7,667 million were up modestly compared with last year on a reported basis.  Unfavorable movements in foreign exchange rates and favorable impacts related to the pass through of higher raw material costs each had an offsetting impact on net sales of approximately 1%. 

Volumes were up approximately 2% compared with the prior year with growth delivered across all key regions. Price/mix had an unfavorable impact on net sales of less than 2%, primarily due to lower volumes in high value healthcare categories in the first half of the year.  On a comparable constant currency basis net sales grew by less than 1% compared with last year.

In North America, net sales were in line with last year on a comparable constant currency basis, with low single digit volume growth offset by unfavorable price/mix. 

In Europe, net sales grew low single digit compared with last year on a comparable constant currency basis, driven by mid single digit volume growth offset by unfavorable price/mix.

Across Asia, net sales on a comparable constant currency basis and volumes increased at mid single digit rates with growth in China and India partly offset by lower volumes in South East Asia.  In Latin America, net sales on a comparable constant currency basis and volumes increased at low to mid single digit rates, largely driven by growth in Peru, Brazil and Chile.

Adjusted EBIT of $1,008 million was approximately 3% higher than last year on a comparable constant currency basis.  The positive impact of higher volumes, favorable cost performance and benefits from restructuring initiatives was partly offset by unfavorable price/mix.  Adjusted EBIT margin of 13.1% was broadly in line with last year.

Net sales of $728 million were 10% lower than last year on a reported basis, including an unfavorable impact of 2% related to movements in foreign exchange rates, a favorable impact of approximately 1% related to the pass through of higher raw material costs of approximately $5 million and an unfavorable impact of approximately 6% related to the divestment of Amcor's 50% interest in the Bericap Joint Venture in December 2024.  

On a comparable constant currency basis, net sales were approximately 3% lower than last year reflecting approximately 2% lower volumes and an unfavorable price/mix impact of approximately 1%.

Consumer and customer demand generally softened sequentially in the North America beverage business, and comparable net sales were lower than the prior year, reflecting volume declines at high single digit rates and modestly unfavorable price/mix.  In Latin America, net sales were up high single digits on a comparable constant currency basis reflecting mid single digit volume growth and favorable price/mix.   Volumes in the Specialty Containers business were higher than last year.

Adjusted EBIT of $55 million was 12% lower than last year on a comparable constant currency basis, reflecting lower volumes and unfavorable price/mix, partly offset by cost benefits net of sequentially higher labor costs.

Net sales of $2,260 million were 8% lower than last year on a reported basis, including an unfavorable impact of approximately 2% related to movements in foreign exchange rates, an unfavorable impact of approximately 1% related to the pass through of lower raw material costs of approximately $35 million and an unfavorable impact of approximately 2% related to the divestment of Amcor's 50% interest in the Bericap Joint Venture in December 2024.  

On a comparable constant currency basis, net sales were approximately 3% lower than last year reflecting approximately 2% lower volumes and an unfavorable price/mix impact of approximately 1%. 

North America beverage comparable constant currency net sales and volumes declined in the high single digit range and price/mix was modestly unfavorable.  In Latin America, net sales on a comparable constant currency basis were up mid single digits, primarily reflecting favorable price/mix benefits.  Across the balance of the Rigid Packaging business volumes were higher than last year.

Adjusted EBIT of $171 million was approximately 1% lower than last year on a comparable constant currency basis, with the impact of lower volumes and unfavorable price/mix partly offset by favorable cost performance.  Adjusted EBIT margin of 7.6% was 10 basis points higher than last year.

Net interest and income tax expense

For the nine months ended March 31, 2025, GAAP net interest expense of $222 million compares with $232 million last year.  Adjusted net interest expense for the nine months ended March 31, 2025 of $218 million compares with $232 million last year.   GAAP income tax expense was $141 million compared with $107 million last year. Adjusted tax expense for the nine months ended March 31, 2025 of $159 million compared with $158 million last year. Adjusted tax expense for the nine months ended March 31, 2025 represents an effective tax rate of 17.8%, compared with 18.1% in the prior year.

Adjusted Free Cash Flow

For the nine months ended March 31, 2025, adjusted free cash outflow was $17 million and compares with an inflow of $115 million last year.  Cash flow was unfavorably impacted by higher inventories, which reflects weaker sales volumes in the March quarter.

Net debt was $6,752 million at March 31, 2025 and leverage, measured as net debt divided by adjusted trailing twelve month EBITDA, was 3.5 times.  Movements in exchange rates toward the end of the quarter had an adverse impact on net debt and increased leverage by approximately 0.1 times compared with the company's expectations. The expected near term impact of the merger on leverage remains unchanged, and the company now expects leverage to be ~3.4 times at June 30, 2025.

Fiscal 2025 Guidance

For the twelve month period ending June 30, 2025, inclusive of merger related impacts in May and June of the fourth quarter:

• Adjusted EPS range narrowed to approximately 72 to 74 cents per share; and
• Adjusted Free Cash Flow of approximately $900 million to $1,000 million.

Amcor's guidance contemplates a range of factors which create a degree of uncertainty and complexity when estimating future financial results. Further information can be found under 'Cautionary Statement Regarding Forward-Looking Statements' in this release.  Reconciliations of the fiscal 2025 projected non-GAAP measures are not included herein because the individual components are not known with certainty as individual financial statements for fiscal 2025 have not been completed. 

Conference Call

Amcor is hosting a conference call with investors and analysts to discuss these results on Wednesday April 30, 2025 at 5:30pm US Eastern Standard Time / Thursday May 1, 2025 at 7:30am Australian Eastern Standard Time. Investors are invited to listen to a live webcast of the conference call at our website, www.amcor.com, in the "Investors" section.

Those wishing to access the call should use the following toll-free numbers, with the Conference ID: 2990465

• USA: 800 715 9871 (toll free)
• USA: 646 307 1963 (local)
• Australia: 1800 519 630 (toll free), 02 9133 7103 (local)
• United Kingdom: 0800 358 0970 (toll free), 020 3433 3846 (local)
• Singapore: +65 3159 5133 (local)
• Hong Kong: +852 3002 3410 (local)

From all other countries, the call can be accessed by dialing +1 646 307 1963 (toll).

A replay of the webcast will also be available in the 'Investors" section at www.amcor.com following the call.