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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
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CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 |
Date of Report (Date of earliest event reported): October 31, 2024
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AMCOR PLC |
(Exact name of registrant as specified in its charter) |
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Jersey | 001-38932 | 98-1455367 |
(State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) |
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83 Tower Road North | |
Warmley, Bristol | |
United Kingdom | BS30 8XP |
(Address of principal executive offices) | (Zip Code) |
+44 117 9753200
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(Registrant’s telephone number, including area code) |
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Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions: | | | | | |
☐ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
☐ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
☐ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
☐ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Securities registered pursuant to Section 12(b) of the Act: | | | | | | | | | | | | | | |
Title of each class | Trading symbol(s) | Name of each exchange on which registered | | |
Ordinary Shares, par value $0.01 per share | AMCR | New York Stock Exchange | | |
1.125% Guaranteed Senior Notes Due 2027 | AUKF/27 | New York Stock Exchange | | |
5.450% Guaranteed Senior Notes Due 2029 | AMCR/29 | New York Stock Exchange | | |
3.950% Guaranteed Senior Notes Due 2032 | AMCR/32 | New York Stock Exchange | | |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02. Results of Operations and Financial Condition.
On October 31, 2024, Amcor plc (the “Company”) issued a press release regarding financial results for the first quarter of fiscal year 2025. The press release is furnished as Exhibit 99.1 hereto. The Company is also furnishing an investor presentation relating to the first quarter of fiscal year 2025 (the “Presentation”), which will be used by management for presentations to investors and others. A copy of the Presentation is attached hereto as Exhibit 99.2 and incorporated into this Item 2.02 by reference. The Presentation is also available on the Company’s website at https://www.amcor.com/investors. The Company is not including the information contained on its website as part of, or incorporating it by reference into, this Current Report on Form 8-K.
The information in this Current Report on Form 8-K shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or incorporated by reference in any filing under the Securities Act of 1933, as amended (the “Securities Act”), or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.
Item 9.01. Financial Statements and Exhibits.
Exhibit Index | | | | | |
Exhibit No. | Description |
99.1 | |
99.2 | |
104 | Cover Page Interactive Data File. The cover page XBRL tags are embedded within the inline XBRL document |
Cautionary Statement Regarding Forward-Looking Statements
This Current Report on Form 8-K (including the Exhibits hereto) contains certain statements that are “forward-looking statements” within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act. The Company has identified some of these forward-looking statements with words like “believe,” “target,” “project,” “may,” “could,” “would,” “approximately,” “possible,” “will,” “should,” “expect,” “intend,” “plan,” “anticipate,” “commit,” “estimate,” “potential,” “ambitions,” “outlook” or “continue,” the negative of these words, other terms of similar meaning or the use of future dates. Such statements are based on the current expectations of the management of the Company, and are qualified by the inherent risks and uncertainties surrounding future expectations generally. Actual results could differ materially from those currently anticipated due to a number of risks and uncertainties. None of the Company or any of its respective directors, executive officers, or advisors, provide any representation, assurance or guarantee that the occurrence of the events expressed or implied in any forward-looking statements will actually occur. Risks and uncertainties that could cause results to differ from expectations include, but are not limited to, those discussed in the Company’s disclosures described under Part I, "Item 1A - Risk Factors" in the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2024. Forward looking statements included herein are made only as of the date hereof and the Company does not undertake any obligation to update any forward-looking statements, or any other information in this Current Report on Form 8-K, as a result of new information, future developments or otherwise, or to correct any inaccuracies or omissions in them which become apparent. All forward-looking statements in this Current Report on Form 8-K are qualified in their entirety by this cautionary statement.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
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| | AMCOR PLC | |
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Date | October 31, 2024 | /s/ Damien Clayton | |
| | Name: | Damien Clayton |
| | Title: | Company Secretary |
Amcor reports first quarter result and reaffirms outlook for fiscal 2025
Highlights - Three Months Ended September 30, 2024
•Third consecutive quarter of sequential improvement in volume growth;
•Net sales of $3,353 million;
•GAAP Net income of $191 million; GAAP diluted earnings per share (EPS) of 13.2 cps;
•Adjusted EBIT of $365 million, up 3% on a comparable constant currency basis;
•Adjusted EPS of 16.2 cps, up 5% on a comparable constant currency basis; and
•Quarterly dividend increased to 12.75 cents per share.
Fiscal 2025 outlook reaffirmed
•Adjusted EPS of 72-76 cents per share; Adjusted Free Cash Flow of $900-1,000 million.
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Amcor delivers another quarter of solid earnings and volume growth; Reaffirms FY25 guidance Amcor CEO Peter Konieczny said: “Amcor started fiscal 2025 well, with volume growth and customer demand dynamics continuing to improve. Adjusted EPS was up 5%, and our Flexibles and Rigid Packaging businesses each contributed to this solid growth through sequential volume improvement and by maintaining an unwavering focus on managing costs and margin quality. These results are aligned with the expectations we set out in August, which gives us the confidence to reaffirm our guidance for the fiscal year." “I am pleased with the overall performance trajectory of the business and I am excited about the significant opportunities we have ahead of us to enhance our profitable organic growth profile, continue to build earnings momentum and evolve into an even stronger company than we are today. We have already taken a number of concrete actions to further leverage Amcor’s market leading positions and capabilities and strengthen our ability to generate attractive, sustainable shareholder returns. We also remain committed to disciplined execution against our capital allocation framework and strategy for growth, and will continue to invest in the business, pursue M&A opportunities or repurchase shares, and return cash to shareholders through a compelling and growing dividend.” |
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Key Financials | | | | | | Three Months Ended September 30, |
GAAP results | | | | | | 2023 $ million | | 2024 $ million |
Net sales | | | | | | 3,443 | | | 3,353 | |
Net income attributable to Amcor plc | | | | | | 152 | | | 191 | |
EPS (diluted US cents) | | | | | | 10.5 | | | 13.2 | |
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| | | | | | | | Comparable constant currency ∆% |
| | Three Months Ended September 30, | | Reported ∆% | |
Adjusted non-GAAP results(1) | | 2023 $ million | | 2024 $ million | | |
Net sales | | 3,443 | | | 3,353 | | | (3) | | | (2) |
EBITDA | | 459 | | | 466 | | | 2 | | | 3 |
EBIT | | 358 | | | 365 | | | 2 | | | 3 |
Net income | | 226 | | | 234 | | | 3 | | | 5 |
EPS (diluted US cents) | | 15.6 | | | 16.2 | | | 3 | | | 5 |
Free Cash Flow | | (227) | | | (395) | | | | | |
(1) Adjusted non-GAAP results exclude items which are not considered representative of ongoing operations. Comparable constant currency ∆% excludes the impact of movements in foreign exchange rates and items affecting comparability. Further details related to non-GAAP measures and reconciliations to GAAP measures can be found under "Presentation of non-GAAP information” in this release.
Note: All amounts referenced throughout this document are in US dollars unless otherwise indicated and numbers may not add up precisely to the totals provided due to rounding.
Shareholder returns
Amcor generates significant annual cash flow and is committed to an investment grade credit rating. We believe that the Company's strong annual cash flow and balance sheet provides capacity to reinvest in the business for organic growth, pursue acquisitions or share repurchases and return cash to shareholders through a compelling and growing dividend.
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 19.19 Australian cents per share, which reflects the quarterly dividend of 12.75 cents per share converted at an AUD:USD average exchange rate of 0.6645 over the five trading days ended October 28, 2024.
The ex-dividend date will be November 20, 2024 for holders of CDIs trading on the ASX and November 21, 2024 for holders of shares trading on the NYSE. For all shareholders the record date will be November 21, 2024 and the payment date will be December 11, 2024.
Financial results - Three Months Ended September 30, 2024
Segment information | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Three Months Ended September 30, 2023 | Three Months Ended September 30, 2024 |
Adjusted non-GAAP results | Net sales $ million | EBIT $ million | EBIT / Sales % | EBIT / Average funds employed %(1) | Net sales $ million | EBIT $ million | EBIT / Sales % | EBIT / Average funds employed %(1) |
Flexibles | 2,568 | | 322 | | 12.5 | | 2,552 | | 329 | | 12.9 | |
Rigid Packaging | 875 | | 62 | | 7.1 | | 801 | | 62 | | 7.7 | |
Other(2) | — | | (26) | | | | — | | (26) | | | |
Total Amcor | 3,443 | | 358 | | 10.4 | 15.0 | | 3,353 | | 365 | | 10.9 | 14.8 |
(1) Return on average funds employed includes shareholders' equity and net debt, calculated using a four quarter average and last twelve months adjusted EBIT.
(2) Represents corporate expenses.
Net sales of $3,353 million were 3% lower than last year on a reported basis, including an unfavorable impact of 1% related to the pass through of lower raw material costs of approximately $20 million. Movements in foreign exchange rates had an unfavorable impact on net sales of less than 1% for the quarter.
Volumes were up approximately 2% compared with the same quarter last year, which represents a sequential improvement of 1 percentage point when compared to year over year volume growth in the quarter ended June 30, 2024. As expected, volumes remained soft in healthcare categories and in the North America beverage business, unfavorably impacting overall volumes by approximately 2%. Across the balance of the business, overall volumes were approximately 4% higher than the prior year. Price/mix had an unfavorable impact of approximately 3%, primarily due to lower volumes in high value healthcare categories. On a comparable constant currency basis, net sales were down less than 2% compared with last year.
Adjusted EBIT of $365 million was approximately 3% higher than last year on a comparable constant currency basis. Unfavorable impacts from price/mix were more than offset by higher volumes, continued strong cost performance and benefits from restructuring initiatives. As a result, adjusted EBIT margin also improved to 10.9%, a 50 basis point increase over the prior year.
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Flexibles segment | | Three Months Ended September 30, | | Reported ∆% | | Comparable constant currency ∆% |
| | 2023 $ million | 2024 $ million | | |
Net sales | | 2,568 | | 2,552 | | | (1) | | | (1) |
Adjusted EBIT | | 322 | | 329 | | | 2 | | | 3 |
Adjusted EBIT / Sales % | | 12.5 | 12.9 | | | | |
Net sales of $2,552 million were 1% lower than 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 less than 1%.
Volumes improved sequentially and were up approximately 3% compared with the prior year with continued growth across most geographies. As expected, destocking continued in healthcare categories and volumes remained soft, unfavorably impacting overall segment volumes for the quarter by approximately 2%. Across the balance of the Flexibles business, overall volumes were approximately 5% higher than the prior year. Price/mix had an unfavorable impact on net sales of approximately 4%, primarily due to lower volumes in high value healthcare categories. On a comparable constant currency basis net sales were approximately 1% lower than last year.
In North America, net sales declined at low single digit rates driven by unfavorable price/mix, partly offset by low single digit volume growth. Volumes were higher in categories including meat, liquids and fresh & frozen foods categories and this was partly offset by lower volumes in categories including healthcare and home & personal care.
In Europe, net sales declined at low single digit rates driven by unfavorable price/mix, partly offset by mid single digit volume growth. Volumes were higher in the dairy, single serve coffee, meat, home & personal care and ready meal end markets and this was partly offset by lower volumes in categories including healthcare and snacks & confectionary.
Across the Asian region, sales and volumes increased at low single digit rates with growth in India and China, partly offset by lower volumes in the Philippines. In Latin America, net sales and volumes increased at mid single digit rates, largely driven by growth in Brazil and Peru.
Adjusted EBIT of $329 million was 3% higher than last year on a comparable constant currency basis. The positive impact of higher volumes, benefits from restructuring initiatives and continued strong cost performance was partly offset by unfavorable price/mix. Adjusted EBIT margin of 12.9% was 40 basis points higher than the September quarter last year.
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Rigid Packaging segment | | Three Months Ended September 30, | | Reported ∆% | | Comparable constant currency ∆% |
| | 2023 $ million | 2024 $ million | | |
Net sales | | 875 | | 801 | | | (8) | | | (4) |
Adjusted EBIT | | 62 | | 62 | | | — | | | 2 |
Adjusted EBIT / Sales % | | 7.1 | 7.7 | | | | |
Net sales of $801 million were 8% 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 3% related to the pass through of lower raw material costs of approximately $25 million.
On a comparable constant currency basis, net sales were approximately 4% lower than last year reflecting lower volumes.
In North America, beverage volumes declined at high single digit rates as a result of continued soft consumer and customer demand which was expected. In Latin America, volumes declined at mid single digit rates primarily reflecting lower volumes in Argentina and Colombia, partly offset by growth in Mexico. Across the balance of the Rigid Packaging business volumes were in line with last year.
Adjusted EBIT of $62 million was 2% higher than last year on a comparable constant currency basis, with the impact of lower volumes more than offset by favorable price/mix and benefits from continued cost actions. Adjusted EBIT margin of 7.7% was 60 basis points higher than the September quarter last year.
Net interest and income tax expense
For the three months ended September 30, 2024, net interest expense of $75 million was in line with last year. GAAP income tax expense was $43 million compared with $39 million last year. Adjusted tax expense for the three months
ended September 30, 2024 of $54 million was in line with last year. Adjusted tax expense for the three months ended September 30, 2024 represents an effective tax rate of 18.6%, compared with 19.1% in the prior year.
Adjusted Free Cash Flow
For the three months ended September 30, 2024, adjusted free cash outflow was $395 million, compared with an outflow of $227 million last year. The increased outflow mainly reflects the impact of higher inventories to service improving volumes and an expected increase in capital expenditure.
Net debt was $6,872 million at September 30, 2024 and leverage, measured as net debt divided by adjusted trailing twelve month EBITDA, was 3.5 times. Movements in spot exchange rates had an adverse impact of approximately 0.1 times on leverage at quarter end. Leverage is expected to be at or below 3.0x at June 30, 2025.
Fiscal 2025 Guidance reaffirmed
For the twelve month period ending June 30, 2025, the Company continues to expect:
•Adjusted EPS of approximately 72 to 76 cents per share, which represents comparable constant currency growth of 3% to 8% (includes approximately 4% headwind related to normalization of incentive compensation payments) compared with 70.2 cents per share in fiscal 2024.
•Assuming current exchange rates prevail through fiscal 2025, movements in exchange rates are not expected to have a material impact on reported EPS.
•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.
Conference Call
Amcor is hosting a conference call with investors and analysts to discuss these results on Thursday October 31, 2024 at 5:30pm US Eastern Daylight Time / Friday November 1, 2024 at 8:30am Australian Eastern Daylight 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.
About Amcor
Amcor is a global leader in developing and producing responsible packaging solutions across a variety of materials for food, beverage, pharmaceutical, medical, home and personal-care, and other products. Amcor works with leading companies around the world to protect products, differentiate brands, and improve supply chains. The Company offers a range of innovative, differentiating flexible and rigid packaging, specialty cartons, closures and services. The company is focused on making packaging that is increasingly recyclable, reusable, lighter weight and made using an increasing amount of recycled content. In fiscal year 2024, 41,000 Amcor people generated $13.6 billion in annual sales from operations that span 212 locations in 40 countries. NYSE: AMCR; ASX: AMC
www.amcor.com I LinkedIn I YouTube
Contact Information | | | | | | | | | | | | | | |
Investors | | | | |
Tracey Whitehead | | Damien Bird | | Damon Wright |
Global Head of Investor Relations | | Vice President Investor Relations Asia Pacific | | Vice President Investor Relations North America |
Amcor | | Amcor | | Amcor |
+61 408 037 590 | | +61 481 900 499 | | +1 224 313 7141 |
tracey.whitehead@amcor.com | | damien.bird@amcor.com | | damon.wright@amcor.com |
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Media - Australia | | Media - Europe | | Media - North America |
James Strong | | Ernesto Duran | | Julie Liedtke |
Managing Director | | Head of Global Communications | | Director, Media Relations |
Sodali & Co | | Amcor | | Amcor |
+61 448 881 174 | | +41 78 698 69 40 | | +1 847 204 2319 |
james.strong@sodali.com | | ernesto.duran@amcor.com | | julie.liedtke@amcor.com |
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Amcor plc UK Establishment Address: 83 Tower Road North, Warmley, Bristol, England, BS30 8XP, United Kingdom
UK Overseas Company Number: BR020803
Registered Office: 3rd Floor, 44 Esplanade, St Helier, JE4 9WG, Jersey
Jersey Registered Company Number: 126984, Australian Registered Body Number (ARBN): 630 385 278
Cautionary Statement Regarding Forward-Looking Statements
This document contains certain statements that are “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements are generally identified with words like “believe,” “expect,” “target,” “project,” “may,” “could,” “would,” “approximately,” “possible,” “will,” “should,” “intend,” “plan,” “anticipate,” "commit," “estimate,” “potential,” "ambitions," “outlook,” or “continue,” the negative of these words, other terms of similar meaning, or the use of future dates. Such statements are based on the current expectations of the management of Amcor and are qualified by the inherent risks and uncertainties surrounding future expectations generally. Actual results could differ materially from those currently anticipated due to a number of risks and uncertainties. Neither Amcor nor any of its respective directors, executive officers, or advisors, provide any representation, assurance, or guarantee that the occurrence of the events expressed or implied in any forward-looking statements will actually occur. Risks and uncertainties that could cause actual results to differ from expectations include, but are not limited to: changes in consumer demand patterns and customer requirements in numerous industries; the loss of key customers, a reduction in their production requirements, or consolidation among key customers; significant competition in the industries and regions in which we operate; an inability to expand our current business effectively through either organic growth, including product innovation, investments, or acquisitions; challenging global economic conditions; impacts of operating internationally; price fluctuations or shortages in the availability of raw materials, energy, and other inputs which could adversely affect our business; production, supply, and other commercial risks, including counterparty credit risks, which may be exacerbated in times of economic volatility; pandemics, epidemics, or other disease outbreaks; an inability to attract and retain our global executive team and skilled workforce and manage key transitions; labor disputes and an inability to renew collective bargaining agreements at acceptable terms; physical impacts of climate change; cybersecurity risks, which could disrupt our operations or risk of loss of our sensitive business information; failures or disruptions in our information technology systems which could disrupt our operations, compromise customer, employee, supplier, and other data; a significant increase in our indebtedness or a downgrade in our credit rating could reduce our operating flexibility and increase our borrowing costs and negatively affect our financial condition and results of operations; rising interest rates that increase our borrowing costs on our variable rate indebtedness and could have other negative impacts; foreign exchange rate risk; a significant write-down of goodwill and/or other intangible assets; a failure to maintain an effective system of internal control over financial reporting; an inability of our insurance policies, including our use of a captive insurance company, to provide adequate protection against all of the risks we face; an inability to defend our intellectual property rights or intellectual property infringement claims against us; litigation, including product liability claims or litigation related to Environmental, Social, and Governance ("ESG"), matters or regulatory developments; increasing scrutiny and changing expectations from investors, customers, suppliers, and governments with respect to our ESG practices and commitments resulting in additional costs or exposure to additional risks; changing ESG government regulations including climate-related rules; changing environmental, health, and safety laws; changes in tax laws or changes in our geographic mix of earnings; and other risks and uncertainties are supplemented by those identified from time to time in our filings with the Securities and Exchange Commission (the “SEC”), including without limitation, those described under Part I, "Item 1A - Risk Factors” in our Annual Report on Form 10-K for the fiscal year ended June 30, 2024 and as updated by our quarterly reports on Form 10-Q. You can obtain copies of Amcor’s filings with the SEC for free at the SEC’s website (www.sec.gov). Forward-looking statements included herein are made only as of the date hereof and Amcor does not undertake any obligation to update any forward-looking statements, or any other information in this communication, as a result of new information, future developments or otherwise, or to correct any inaccuracies or omissions in them which become apparent, except as expressly required by law. All forward-looking statements in this communication are qualified in their entirety by this cautionary statement.
Presentation of non-GAAP information
Included in this release are measures of financial performance that are not calculated in accordance with U.S. GAAP. These measures include adjusted EBITDA and EBITDA (calculated as earnings before interest and tax and depreciation and amortization), adjusted EBIT and EBIT (calculated as earnings before interest and tax), adjusted net income, adjusted earnings per share, adjusted free cash flow and net debt. In arriving at these non-GAAP measures, we exclude items that either have a non-recurring impact on the income statement or which, in the judgment of our management, are items that, either as a result of their nature or size, could, were they not singled out, potentially cause investors to extrapolate future performance from an improper base. Note that while amortization of acquired intangible assets is excluded from non-GAAP adjusted financial measures, the revenue of the acquired entities and all other expenses unless otherwise stated, are reflected in our non-GAAP financial performance earnings measures. While not all inclusive, examples of these items include: material restructuring programs, including associated costs such as employee severance, pension and related benefits, impairment of property and equipment and other assets, accelerated depreciation, termination payments for contracts and leases, contractual obligations, and any other qualifying costs related to restructuring plans; material sales and earnings from disposed or ceased operations and any associated profit or loss on sale of businesses or subsidiaries; changes in the fair value of economic hedging instruments on commercial paper and contingent purchase consideration; significant pension settlements; impairments in goodwill and equity method investments; material acquisition compensation and transaction costs such as due diligence expenses, professional and legal fees, and integration costs; material purchase accounting adjustments for inventory; amortization of acquired intangible assets from business combination; gains or losses on significant property and divestitures and significant property and other impairments, net of insurance recovery; certain regulatory and legal matters; impacts from highly inflationary accounting; expenses related to the Company's Chief Executive Officer transition; and impacts related to the Russia-Ukraine conflict.
Amcor also evaluates performance on a comparable constant currency basis, which measures financial results assuming constant foreign currency exchange rates used for translation based on the average rates in effect for the comparable prior year period. In order to compute comparable constant currency results, we multiply or divide, as appropriate, current-year U.S. dollar results by the current year average foreign exchange rates and then multiply or divide, as appropriate, those amounts by the prior-year average foreign exchange rates. We then adjust for other items affecting comparability. While not all inclusive, examples of items affecting comparability include the difference between sales or earnings in the current period and the prior period related to disposed, or ceased operations. Comparable constant currency net sales performance also excludes the impact from passing through movements in raw material costs.
Management has used and uses these measures internally for planning, forecasting and evaluating the performance of the Company’s reporting segments and certain of the measures are used as a component of Amcor’s Board of Directors’ measurement of Amcor’s performance for incentive compensation purposes. Amcor believes that these non-GAAP measures are useful to enable investors to perform comparisons of current and historical performance of the Company. For each of these non-GAAP financial measures, a reconciliation to the most directly comparable U.S. GAAP financial measure has been provided herein. These non-GAAP financial measures should not be construed as an alternative to results determined in accordance with U.S. GAAP. The Company provides guidance on a non-GAAP basis as we are unable to predict with reasonable certainty the ultimate outcome and timing of certain significant forward-looking items without unreasonable effort. These items include but are not limited to the impact of foreign exchange translation, restructuring program costs, asset impairments, possible gains and losses on the sale of assets, and certain tax related events. These items are uncertain, depend on various factors, and could have a material impact on U.S. GAAP earnings and cash flow measures for the guidance period.
Dividends
Amcor has received a waiver from the ASX’s settlement operating rules, which will allow the Company to defer processing conversions between its ordinary share and CDI registers from November 20, 2024 to November 21, 2024 inclusive.
U.S. GAAP Condensed Consolidated Statements of Income (Unaudited) | | | | | | | | | | | | | | | | | |
| | Three Months Ended September 30, | |
($ million) | | 2023 | | 2024 | | | |
Net sales | | 3,443 | | | 3,353 | | | | |
Cost of sales | | (2,798) | | | (2,694) | | | | |
Gross profit | | 645 | | | 659 | | | | |
Selling, general, and administrative expenses | | (302) | | | (315) | | | | |
Research and development expenses | | (27) | | | (28) | | | | |
Restructuring and related expenses, net | | (28) | | | (6) | | | | |
Other income/(expenses), net | | (18) | | | 2 | | | | |
Operating income | | 270 | | | 312 | | | | |
Interest expense, net | | (75) | | | (75) | | | | |
Other non-operating expenses, net | | (1) | | | (1) | | | | |
Income before income taxes and equity in loss of affiliated companies | | 194 | | | 236 | | | | |
Income tax expense | | (39) | | | (43) | | | | |
Equity in loss of affiliated companies, net of tax | | (1) | | | — | | | | |
Net income | | 154 | | | 193 | | | | |
Net income attributable to non-controlling interests | | (2) | | | (2) | | | | |
Net income attributable to Amcor plc | | 152 | | | 191 | | | | |
USD:EUR average FX rate | | 0.9189 | | | 0.9105 | | | | |
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Basic earnings per share attributable to Amcor | | 0.105 | | | 0.132 | | | | |
Diluted earnings per share attributable to Amcor | | 0.105 | | | 0.132 | | | | |
Weighted average number of shares outstanding – Basic | | 1,439 | | | 1,440 | | | | |
Weighted average number of shares outstanding – Diluted | | 1,439 | | | 1,444 | | | | |
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U.S. GAAP Condensed Consolidated Statements of Cash Flows (Unaudited) | | | | | | | | | | | | | | |
| | Three Months Ended September 30, |
($ million) | | 2023 | | 2024 |
Net income | | 154 | | | 193 | |
Depreciation, amortization and impairment | | 149 | | | 141 | |
| | | | |
Changes in operating assets and liabilities, excluding effect of acquisitions, divestitures, and currency | | (490) | | | (631) | |
Other non-cash items | | 52 | | | 28 | |
Net cash used in operating activities | | (135) | | | (269) | |
Purchase of property, plant and equipment and other intangible assets | | (124) | | | (145) | |
Proceeds from sales of property, plant and equipment and other intangible assets | | 4 | | | 1 | |
Business acquisitions and investments in affiliated companies, and other | | (22) | | | (11) | |
| | | | |
Net debt proceeds | | 396 | | | 454 | |
Dividends paid | | (176) | | | (180) | |
Share buyback/cancellations | | (30) | | | — | |
Purchase of treasury shares, proceeds from issuance of shares and tax withholdings for share-based incentive plans | | (46) | | | (34) | |
| | | | |
Other, including effect of exchange rate on cash and cash equivalents | | (32) | | | 28 | |
Net decrease in cash and cash equivalents | | (165) | | | (156) | |
Cash and cash equivalents balance at beginning of the year | | 689 | | | 588 | |
Cash and cash equivalents balance at end of the period | | 524 | | | 432 | |
U.S. GAAP Condensed Consolidated Balance Sheets (Unaudited) | | | | | | | | | | | | | | |
($ million) | | June 30, 2024 | | September 30, 2024 |
Cash and cash equivalents | | 588 | | | 432 | |
Trade receivables, net | | 1,846 | | | 1,973 | |
Inventories, net | | 2,031 | | | 2,228 | |
Property, plant, and equipment, net | | 3,763 | | | 3,854 | |
Goodwill and other intangible assets, net | | 6,736 | | | 6,753 | |
Other assets | | 1,560 | | | 1,670 | |
Total assets | | 16,524 | | | 16,910 | |
Trade payables | | 2,580 | | | 2,380 | |
Short-term debt and current portion of long-term debt | | 96 | | | 128 | |
Long-term debt, less current portion | | 6,603 | | | 7,176 | |
Accruals and other liabilities | | 3,292 | | | 3,233 | |
Shareholders' equity | | 3,953 | | | 3,993 | |
Total liabilities and shareholders' equity | | 16,524 | | | 16,910 | |
| | | | |
| | | | |
Components of Fiscal 2025 Net Sales growth
| | | | | | | | | | | | | | | | | | |
| Three Months Ended September 30, | | | |
($ million) | Flexibles | Rigid Packaging | Total | | | | | | | |
Net sales fiscal 2025 | 2,552 | | 801 | | 3,353 | | | | | | | | |
Net sales fiscal 2024 | 2,568 | | 875 | | 3,443 | | | | | | | | |
Reported Growth % | (1) | | (8) | | (3) | | | | | | | | |
FX % | — | | (1) | | — | | | | | | | | |
Constant Currency Growth % | (1) | | (7) | | (3) | | | | | | | | |
RM Pass Through % | — | | (3) | | (1) | | | | | | | | |
Items affecting comparability % | — | | — | | — | | | | | | | | |
Comparable Constant Currency Growth % | (1) | | (4) | | (2) | | | | | | | | |
Acquired operations % | — | | — | | — | | | | | | | | |
Organic Growth % | (1) | | (4) | | (2) | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
Volume % | 3 | | (4) | | 2 | | | | | | | | |
Price/Mix % | (4) | | — | | (3) | | | | | | | | |
Reconciliation of Non-GAAP Measures
Reconciliation of adjusted Earnings before interest, tax, depreciation, and amortization (EBITDA), Earnings before interest and tax (EBIT), Net income, Earnings per share (EPS) and Adjusted Free Cash Flow
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Three Months Ended September 30, 2023 | | Three Months Ended September 30, 2024 |
($ million) | | EBITDA | | EBIT | | Net Income | | EPS (Diluted US cents)(1) | | EBITDA | | EBIT | | Net Income | | EPS (Diluted US cents)(1) |
Net income attributable to Amcor | | 152 | | | 152 | | | 152 | | | 10.5 | | | 191 | | | 191 | | | 191 | | | 13.2 | |
Net income attributable to non-controlling interests | | 2 | | | 2 | | | | | | | 2 | | | 2 | | | | | |
Tax expense | | 39 | | | 39 | | | | | | | 43 | | | 43 | | | | | |
Interest expense, net | | 75 | | | 75 | | | | | | | 75 | | | 75 | | | | | |
Depreciation and amortization | | 142 | | | | | | | | | 140 | | | | | | | |
EBITDA, EBIT, Net income, and EPS | | 410 | | | 268 | | | 152 | | | 10.5 | | | 451 | | | 311 | | | 191 | | | 13.2 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Impact of highly inflationary accounting | | 17 | | | 17 | | | 17 | | | 1.2 | | | 2 | | | 2 | | | 2 | | | 0.1 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Restructuring and related expenses, net(2) | | 28 | | | 28 | | | 28 | | | 1.9 | | | 6 | | | 6 | | | 6 | | | 0.4 | |
Other | | 4 | | | 4 | | | 4 | | | 0.2 | | | 7 | | | 7 | | | 7 | | | 0.4 | |
Amortization of acquired intangibles(3) | | | | 41 | | | 41 | | | 2.8 | | | | | 39 | | | 39 | | | 2.8 | |
Tax effect of above items | | | | | | (16) | | | (1.1) | | | | | | | (11) | | | (0.7) | |
Adjusted EBITDA, EBIT, Net income and EPS | | 459 | | | 358 | | | 226 | | | 15.6 | | | 466 | | | 365 | | | 234 | | | 16.2 | |
Reconciliation of adjusted growth to comparable constant currency growth | | | | | | | | | | |
% growth - Adjusted EBITDA, EBIT, Net income, and EPS | | | | | | | | 2 | | | 2 | | | 3 | | | 3 | |
% items affecting comparability | | | | | | | | | | — | | | — | | | — | | | — | |
% currency impact | | | | | | | | | | 1 | | | 1 | | | 2 | | | 2 | |
% comparable constant currency growth | | | | | | | | | | 3 | | | 3 | | | 5 | | | 5 | |
Adjusted EBITDA | | 459 | | | | | | | | | 466 | | | | | | | |
Interest paid, net | | (47) | | | | | | | | | (36) | | | | | | | |
Income tax paid | | (53) | | | | | | | | | (75) | | | | | | | |
Purchase of property, plant and equipment and other intangible assets | | (124) | | | | | | | | | (145) | | | | | | | |
Proceeds from sales of property, plant and equipment and other intangible assets | | 4 | | | | | | | | | 1 | | | | | | | |
Movement in working capital | | (459) | | | | | | | | | (586) | | | | | | | |
Other | | (7) | | | | | | | | | (20) | | | | | | | |
Adjusted Free Cash Flow | | (227) | | | | | | | | | (395) | | | | | | | |
(1) Calculation of diluted EPS for the three months ended September 30, 2024 excludes net income attributable to shares to be repurchased under forward contracts of $1 million. Calculation of diluted EPS for the three months ended September 30, 2023 excludes net income attributable to shares to be repurchased under forward contracts of $1 million.
(2) Includes incremental restructuring and related expenses attributable to group wide initiatives to partly offset divested earnings from the Russian business.
(3) Amortization of acquired intangible assets from business combinations.
Reconciliation of adjusted EBIT by reportable segment
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Three Months Ended September 30, 2023 | | Three Months Ended September 30, 2024 |
($ million) | | Flexibles | | Rigid Packaging | | Other | | Total | | Flexibles | | Rigid Packaging | | Other | | Total |
Net income attributable to Amcor | | | | | | | | 152 | | | | | | | | | 191 | |
Net income attributable to non-controlling interests | | | | | | | | 2 | | | | | | | | | 2 | |
Tax expense | | | | | | | | 39 | | | | | | | | | 43 | |
Interest expense, net | | | | | | | | 75 | | | | | | | | | 75 | |
EBIT | | 256 | | | 40 | | | (28) | | | 268 | | | 280 | | | 59 | | | (28) | | | 311 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Impact of highly inflationary accounting | | — | | | 17 | | | — | | | 17 | | | — | | | 2 | | | — | | | 2 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Restructuring and related expenses, net(1) | | 24 | | | 4 | | | — | | | 28 | | | 6 | | | — | | | — | | | 6 | |
Other | | 2 | | | — | | | 2 | | | 4 | | | 6 | | | — | | | 1 | | | 7 | |
Amortization of acquired intangibles(2) | | 40 | | | 1 | | | — | | | 41 | | | 37 | | | 1 | | | 1 | | | 39 | |
Adjusted EBIT | | 322 | | | 62 | | | (26) | | | 358 | | | 329 | | | 62 | | | (26) | | | 365 | |
Adjusted EBIT / sales % | | 12.5 | % | | 7.1 | % | | | | 10.4 | % | | 12.9 | % | | 7.7 | % | | | | 10.9 | % |
Reconciliation of adjusted growth to comparable constant currency growth | | | | | | | | |
% growth - Adjusted EBIT | | | | | | | | | | 2 | | | — | | | — | | | 2 | |
% items affecting comparability | | | | | | | | | | — | | | — | | | — | | | — | |
% currency impact | | | | | | | | | | 1 | | | 2 | | | — | | | 1 | |
% comparable constant currency | | | | | | | | | | 3 | | | 2 | | | — | | | 3 | |
(1) Includes incremental restructuring and related expenses attributable to group wide initiatives to partly offset divested earnings from the Russian business.
(2) Amortization of acquired intangible assets from business combinations.
Reconciliation of net debt | | | | | | | | | | | | | | |
($ million) | | June 30, 2024 | | September 30, 2024 |
Cash and cash equivalents | | (588) | | | (432) | |
Short-term debt | | 84 | | | 115 | |
Current portion of long-term debt | | 12 | | | 13 | |
Long-term debt, less current portion | | 6,603 | | | 7,176 | |
Net debt | | 6,111 | | | 6,872 | |
Fiscal 2025 First Quarter Results (three months ended September 30, 2024) October 31, 2024 US November 1, 2024 Australia Peter Konieczny CEO Michael Casamento CFO
Disclaimers 2 Cautionary Statement Regarding Forward-Looking Statements This document contains certain statements that are “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements are generally identified with words like “believe,” “expect,” “target,” “project,” “may,” “could,” “would,” “approximately,” “possible,” “will,” “should,” “intend,” “plan,” “anticipate,” "commit," “estimate,” “potential,” "ambitions," “outlook,” or “continue,” the negative of these words, other terms of similar meaning, or the use of future dates. Such statements are based on the current expectations of the management of Amcor and are qualified by the inherent risks and uncertainties surrounding future expectations generally. Actual results could differ materially from those currently anticipated due to a number of risks and uncertainties. Neither Amcor nor any of its respective directors, executive officers, or advisors, provide any representation, assurance, or guarantee that the occurrence of the events expressed or implied in any forward-looking statements will actually occur. Risks and uncertainties that could cause actual results to differ from expectations include, but are not limited to: changes in consumer demand patterns and customer requirements in numerous industries; the loss of key customers, a reduction in their production requirements, or consolidation among key customers; significant competition in the industries and regions in which we operate; an inability to expand our current business effectively through either organic growth, including product innovation, investments, or acquisitions; challenging global economic conditions; impacts of operating internationally; price fluctuations or shortages in the availability of raw materials, energy and other inputs, which could adversely affect our business; production, supply, and other commercial risks, including counterparty credit risks, which may be exacerbated in times of economic volatility; pandemics, epidemics, or other disease outbreaks; an inability to attract and retain our global executive team and skilled workforce and manage key transitions; labor disputes and an inability to renew collective bargaining agreements at acceptable terms; physical impacts of climate change; cybersecurity risks, which could disrupt our operations or risk of loss of our sensitive business information; failures or disruptions in our information technology systems which could disrupt our operations, compromise customer, employee, supplier, and other data; a significant increase in our indebtedness or a downgrade in our credit rating could reduce our operating flexibility and increase our borrowing costs and negatively affect our financial condition and results of operations; rising interest rates that increase our borrowing costs on our variable rate indebtedness and could have other negative impacts; foreign exchange rate risk; a significant write-down of goodwill and/or other intangible assets; a failure to maintain an effective system of internal control over financial reporting; an inability of our insurance policies, including our use of a captive insurance company, to provide adequate protection against all of the risks we face; an inability to defend our intellectual property rights or intellectual property infringement claims against us; litigation, including product liability claims or litigation related to Environmental, Social, and Governance (“ESG”) matters, or regulatory developments; increasing scrutiny and changing expectations from investors, customers, suppliers, and governments with respect to our ESG practices and commitments resulting in additional costs or exposure to additional risks; changing ESG government regulations including climate-related rules; changing environmental, health, and safety laws; changes in tax laws or changes in our geographic mix of earnings; and other risks and uncertainties are supplemented by those identified from time to time in our filings with the Securities and Exchange Commission (the “SEC”), including without limitation, those described under Part I, “Item 1A - Risk Factors” in our Annual Report on Form 10-K for the fiscal year ended June 30, 2024 and updated by our quarterly reports on Form 10-Q. You can obtain copies of Amcor’s filings with the SEC for free at the SEC’s website (www.sec.gov). Forward-looking statements included herein are made only as of the date hereof and Amcor does not undertake any obligation to update any forward-looking statements, or any other information in this communication, as a result of new information, future developments or otherwise, or to correct any inaccuracies or omissions in them which become apparent, except as expressly required by law. All forward-looking statements in this communication are qualified in their entirety by this cautionary statement. Presentation of non-GAAP information Included in this release are measures of financial performance that are not calculated in accordance with U.S. GAAP. These measures include adjusted EBITDA and EBITDA (calculated as earnings before interest and tax and depreciation and amortization), adjusted EBIT and EBIT (calculated as earnings before interest and tax), adjusted net income, adjusted earnings per share, adjusted free cash flow and net debt. In arriving at these non-GAAP measures, we exclude items that either have a non-recurring impact on the income statement or which, in the judgment of our management, are items that, either as a result of their nature or size, could, were they not singled out, potentially cause investors to extrapolate future performance from an improper base. Note that while amortization of acquired intangible assets is excluded from non-GAAP adjusted financial measures, the revenue of the acquired entities and all other expenses unless otherwise stated, are reflected in our non- GAAP financial performance earnings measures. While not all inclusive, examples of these items include: material restructuring programs, including associated costs such as employee severance, pension and related benefits, impairment of property and equipment and other assets, accelerated depreciation, termination payments for contracts and leases, contractual obligations, and any other qualifying costs related to restructuring plans; material sales and earnings from disposed or ceased operations and any associated profit or loss on sale of businesses or subsidiaries; changes in the fair value of economic hedging instruments on commercial paper and contingent purchase consideration; significant pension settlements; impairments in goodwill and equity method investments; material acquisition compensation and transaction costs such as due diligence expenses, professional and legal fees, and integration costs; material purchase accounting adjustments for inventory; amortization of acquired intangible assets from business combination; gains or losses on significant property and divestitures and significant property and other impairments, net of insurance recovery; certain regulatory and legal matters; impacts from highly inflationary accounting; expenses related to the Company's Chief Executive Officer transition; and impacts related to the Russia-Ukraine conflict. Amcor also evaluates performance on a comparable constant currency basis, which measures financial results assuming constant foreign currency exchange rates used for translation based on the average rates in effect for the comparable prior year period. In order to compute comparable constant currency results, we multiply or divide, as appropriate, current-year U.S. dollar results by the current year average foreign exchange rates and then multiply or divide, as appropriate, those amounts by the prior-year average foreign exchange rates. We then adjust for other items affecting comparability. While not all inclusive, examples of items affecting comparability include the difference between sales or earnings in the current period and the prior period related to disposed or ceased operations. Comparable constant currency net sales performance also excludes the impact from passing through movements in raw material costs. Management has used and uses these measures internally for planning, forecasting and evaluating the performance of the Company’s reporting segments and certain of the measures are used as a component of Amcor’s Board of Directors’ measurement of Amcor’s performance for incentive compensation purposes. Amcor believes that these non-GAAP measures are useful to enable investors to perform comparisons of current and historical performance of the Company. For each of these non-GAAP financial measures, a reconciliation to the most directly comparable U.S. GAAP financial measure has been provided herein. These non-GAAP financial measures should not be construed as an alternative to results determined in accordance with U.S. GAAP. The Company provides guidance on a non-GAAP basis as we are unable to predict with reasonable certainty the ultimate outcome and timing of certain significant forward-looking items without unreasonable effort. These items include but are not limited to the impact of foreign exchange translation, restructuring program costs, asset impairments, possible gains and losses on the sale of assets, and certain tax related events. These items are uncertain, depend on various factors, and could have a material impact on U.S. GAAP earnings and cash flow measures for the guidance period.
Safety 3 Guided by our values. Always our number one priority. Sustained excellence 11.2 4.1 2.0 2.8 1.4 [x.x] Recordable-case frequency rate (per million hours worked) 1Q25 TRIR Includes impact of acquired businesses 201520102005 2020 Notes: Recordable Case Frequency Rate (RCFR) expresses injuries per 1,000,000 hours worked. Graph data shown for a 12 month period ended June 30 unless otherwise indicated. Acquired businesses (including Bemis) are included in 2020 and account for the increase in frequency rate compared with 2015. Total Recordable Incident Rate (TRIR) expresses injuries per 200,000 hours worked. Amcor’s TRIR is equivalent to Amcor’s rate under OSHA (Occupational Safety & Health Administration). Average of North America paper manufacturing, plastic and rubber products manufacturing and printing and related support activities TRIR rate for 2022. Source: US Bureau of Labor Statistics. Amcor Values 2024 • Industry-leading safety performance • 13% reduction in number of injuries • 73% of sites injury free for >12 months 1Q25 North America packaging materials industry average TRIR 2.7 0.3 1.5
4 Further orient portfolio towards faster growing higher margin categories through organic growth and M&A Champion the best substrate solutions to eliminate waste, lower carbon footprint and increase recycling rates Growth oriented customer first mindset and leverage global scale and capabilities Growth: Customer after safety Enhance Commercial Excellence Program and leverage innovation capabilities Growth CapabilitiesCulture, talent and organization 4 Sustainability Actions taken: • Culture change initiative • Newly created Chief Operating Officer role for Global Flexibles Actions taken: • Growth accelerator Value+ 2.0 program Portfolio Actions taken: • Added Dairy and Liquids global growth categories Actions taken: • Newly created Chief Sustainability Officer role Customer
5 Established, long-term track record enhanced by higher levels of volume- driven organic growth Consistent delivery of attractive and sustainable value aligned with Amcor’s Shareholder Value Creation Model Partner of choice to solve for sustainability across multiple substrates, driving circularity and decarbonisation Vision The ‘go to’ packaging solutions supplier in our focused end markets for customers big and small across the globe Market leadershipSustainability Compelling value creation Consistent organic growth Packaging partner of choice known for… 5
6 Key messages Another quarter of sequentially improving volume growth First quarter financial result in line with expectations Reaffirming full year guidance Evolving strategic focus to unlock value 6
+5% vs pcp First quarter financial result in line with expectations 7 -2% vs pcp Another quarter of volume growth and sequential improvement $3,353m Net sales +3% vs pcp $365m EBIT EPS 16.2 cents Notes: EBIT and EPS presented on an adjusted basis and growth rates for these and Net sales exclude the impact of currency and items impacting comparability. Adjusted non-GAAP measures exclude items which are not considered representative of ongoing operations. Further details related to non-GAAP measures and reconciliations to U.S. GAAP measures can be found in the appendix section. Definitions ‘pcp’ is ‘prior comparator period’; ‘DPS’ is ‘Dividend per Share’. Volumes up ~2% vs last year • ~1 percentage point further improvement on 4Q24 • Overall net volumes across the balance of the business up ~4% excluding expected weakness in healthcare categories and North America beverage 1Q EBIT growth reflects • Improving volumes • Continued strong cost performance, partly offset by unfavorable price/mix as expected • Earnings growth across both segments EBIT margin up 50 bps to 10.9% +2% vs pcp DPS 12.75 cents
Flexibles segment Notes: CCC refers to Comparable Constant Currency. CCC growth reconciliations can be found in the appendix. Non-GAAP measures exclude items which are not considered representative of ongoing operations. Further details related to non-GAAP measures including Adjusted EBIT and reconciliations to U.S. GAAP measures can be found in the appendix. 8 Solid volume growth and strong cost performance September quarter highlights • Volumes up 3% with growth across most geographies • Volumes up MSD excluding healthcare • As expected, destocking continued in healthcare, which also drives unfavorable price/mix • Adjusted EBIT up 3% reflecting • Volume growth • Strong cost performance • Partly offset by unfavorable price/mix as expected $m 1Q24 1Q25 CCC ∆ Net sales 2,568 2,552 -1% Adjusted EBIT 322 329 +3% Adjusted EBIT margin 12.5% 12.9% New product launch with 30% recycled materials New business win AmPrima™ Plus refill pouch
September quarter highlights • Third quarter of sequential improvement in overall volumes. Volumes down 4%, a ~1% point improvement on 4Q24 • North America beverage volumes down high single digit rates largely reflecting expected soft consumer and customer demand • Adjusted EBIT up 2% reflecting • Strong cost performance • Favorable price/mix • Partly offset by lower volumes • Agreement reached to divest Amcor’s 50% interest in Bericap Joint Venture for $122 million. Expected to close in 2Q25 Rigid Packaging segment Notes: CCC refers to Comparable Constant Currency. CCC growth reconciliations can be found in the appendix. Non-GAAP measures exclude items which are not considered representative of ongoing operations. Further details related to non-GAAP measures including Adjusted EBIT and reconciliations to U.S. GAAP measures can be found in the appendix. 9 Continued focus on cost and further sequential improvement in volumes First one-liter Carbonated Soft Drink stock container with 100% PCR Conversion from glass to PET format with oxygen barrier $m 1Q24 1Q25 CCC ∆ Net sales 875 801 -4% Adjusted EBIT 62 62 +2% Adjusted EBIT margin 7.1% 7.7%
Cash flow and balance sheet 10 Notes: Non-GAAP measures exclude items which are not considered representative of ongoing operations. Further details related to non-GAAP measures including Adjusted EBITDA and Adjusted Free Cash Flow and reconciliations to U.S. GAAP measures can be found in the appendix section. (1) Leverage calculated as Net debt divided by adjusted trailing twelve month EBITDA. Cash flow ($ million) 1Q24 1Q25 Adjusted EBITDA 459 466 Interest and tax payments, net (100) (111) Capital expenditure (124) (145) Movement in working capital (459) (586) Other (3) (19) Adjusted Free Cash Flow (227) (395) Balance sheet(1) September 2024 Net debt ($ million) 6,872 Leverage: Net debt / LTM EBITDA (x) 3.5 September quarter highlights • Working capital impacted by higher inventories to service improving volumes • Increase in capex as expected • Movements in spot exchange rates had an adverse impact of approximately 0.1 times on leverage. • Expect leverage to improve through the year and to exit fiscal 2025 at or below 3.0x • ~$180 million cash returned to shareholders through compelling and growing dividend Reaffirming full year free cash flow guidance and leverage expectations
11 Fiscal 2025 guidance reaffirmed Amcor’s guidance contemplates a range of factors which create a higher degree of uncertainty and additional complexity when estimating future financial results. Refer to slide 2 for further information. 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. • Adjusted EPS of approximately 72 to 76 cents per share, which represents comparable constant currency growth of 3% to 8% (includes approximately 4% headwind related to normalization of incentive compensation payments) compared with 70.2 cents per share in fiscal 2024. • Assuming current exchange rates prevail through fiscal 2025, movements in exchange rates are not expected to have a material impact on reported EPS • Net interest expense is expected to be between $290 to $305 million • Effective tax rate is expected to be between 19% and 20% • Adjusted Free Cash Flow of approximately $900 million to $1,000 million. For the year ended June 30, 2025, the Company continues to expect
12 Key messages Another quarter of sequentially improving volume growth First quarter financial result in line with expectations Reaffirming full year guidance Evolving strategic focus to unlock value 12
Appendix slides Supplementary schedules and reconciliations
FX translation impact 14 EUR 20-30% Other currencies(2) 20-30% USD 45-55% EUR:USD Euro stronger vs USD, Average USD to EUR rate 1Q25 0.9105 vs 1Q24 0.9189 1Q25 USD million impact on Adjusted Net income 1% 1 Other currencies(2):USD Other currencies weighted average vs USD weaker for 1Q25 vs 1Q24 average rates 1Q25 USD million impact on Adjusted Net income (6%) (4) (1) Approximate ranges based on adjusted Net income by currency. (2) Includes all currencies other than USD and EUR Total currency impact $ million Adjusted EBIT (4) Adjusted Net income (3) Combined Net income currency exposures(1) 1Q25 currency impact
Reconciliations of non-GAAP financial measures 15
Reconciliations of non-GAAP financial measures 16
Reconciliations of non-GAAP financial measures 17
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