Consumer Discretionary
Packaging & Containers
$13.58B
41K
Amcor plc develops, produces, and sells packaging products in Europe, North America, Latin America, and the Asia Pacific. The company operates in two segments, Flexibles and Rigid Packaging. The Flexibles segment offers flexible and film packaging products in the food and beverage, medical and pharmaceutical, fresh produce, snack food, personal care, and other industries. The Rigid Packaging segment provides rigid containers for various beverage and food products, including carbonated soft drinks, water, juices, sports drinks, milk-based beverages, spirits and beer, sauces, dressings, spreads, and personal care items; and plastic caps for various applications. It sells its products through its direct sales force. The company was incorporated in 1926 and is headquartered in Zurich, Switzerland.
Key insights and themes extracted from this filing
Net sales decreased from $3,443 million to $3,353 million. Excluding currency impacts and pass-through of lower raw material costs, net sales decreased by $54 million, or 2%, due to unfavorable price/mix.
Net income attributable to Amcor plc increased from $152 million to $191 million. The increase was mainly due to higher gross profit, lower restructuring expenses, higher other income, partially offset by higher selling, general, and administrative expenses, and higher income tax expenses.
Gross profit margin increased from 18.7% to 19.7%. The increase was primarily driven by the impact of cost savings initiatives.
Management expects to realize an annualized pre-tax benefit of approximately $50 million from structural cost reduction actions taken as a result of all Russia related restructuring by the end of fiscal year 2025.
On October 30, 2024, the Company entered into an agreement to sell its 50% consolidated investment in the Bericap North America closures business to its joint venture partner for approximately $122 million. The Company expects the transaction to close by the end of calendar year 2024, with proceeds from the sale used to reduce debt.
On September 27, 2023, the Company completed the acquisition of a small manufacturer of flexible packaging for food, home care, and personal care applications in India for a purchase consideration of $14 million plus the assumption of debt of $10 million.
In the face of softer consumer demand and customer order volatility, management has remained focused on taking price and cost actions to offset inflation and aligning the cost base with market dynamics.
In March 2024, the company announced the retirement of CEO Ron Delia and the appointment of Peter Konieczny as Interim CEO. On September 4, 2024, the Board of Directors of the Company appointed Mr. Konieczny as the Chief Executive Officer of the Company, effective immediately.
The Chief Executive Officer and Chief Financial Officer have concluded that our disclosure controls and procedures were effective as of September 30, 2024.
The company highlights the importance of attracting, developing, and retaining skilled and diverse personnel in its global executive management team and operations, noting that failure to do so may adversely affect the company.
The company continues to be impacted by softer consumer demand and customer order volatility in certain markets, and higher costs in certain areas, such as labor costs. The underlying causes for the market volatility being experienced can be attributed to a variety of factors, such as geopolitical tension and conflicts, inflation in many economies impacting consumption and consumer demand, and customer destocking following a period of supply chain constraints.
The Company has also recorded aggregate accruals of $41 million for potential liabilities for remediation obligations at various worldwide locations that are owned or operated by the Company, or were formerly owned or operated.
We are focused on making packaging that is increasingly recyclable, reusable, lighter weight, and made using an increasing amount of recycled content.
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.
The Company's innovation excellence and global packaging expertise enable the Company to solve packaging challenges around the world every day, producing a range of flexible packaging, rigid packaging, cartons, and closures that are more functional, appealing, and cost effective for its customers and their consumers and importantly, more sustainable for the environment.
The company is implementing various cost savings initiatives to partly offset divested earnings from the Russian business.
As of September 30, 2024, we have initiated restructuring and related projects with an expected net cost of approximately $220 million, of which approximately $130 million is expected to result in net cash expenditures.
In this context, we have remained focused on taking price and cost actions to offset inflation and aligning our cost base with market dynamics.
We offer a range of innovative, differentiating flexible and rigid packaging, specialty cartons, closures, and services.
The Company's innovation excellence and global packaging expertise enable the Company to solve packaging challenges around the world every day, producing a range of flexible packaging, rigid packaging, cartons, and closures that are more functional, appealing, and cost effective for its customers and their consumers and importantly, more sustainable for the environment.
The Company's innovation excellence and global packaging expertise enable the Company to solve packaging challenges around the world every day, producing a range of flexible packaging, rigid packaging, cartons, and closures that are more functional, appealing, and cost effective for its customers and their consumers and importantly, more sustainable for the environment.
On February 7, 2023, our Board of Directors approved a $100 million buyback of ordinary shares and/or CHESS Depositary Instruments ("CDIs") in the following twelve months.
On February 6, 2024, our Board of Directors extended the approval for the remaining $39 million of ordinary shares and CDIs of the $100 million buyback for twelve months.
On October 31, 2024, the Company's Board of Directors declared a quarterly cash dividend of $0.1275 per share to be paid on December 11, 2024 to shareholders of record as of November 21, 2024.
We are focused on making packaging that is increasingly recyclable, reusable, lighter weight, and made using an increasing amount of recycled content.
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
We continue to be impacted by softer consumer demand and customer order volatility in certain markets, and higher costs in certain areas, such as labor costs.
The underlying causes for the market volatility being experienced can be attributed to a variety of factors, such as geopolitical tension and conflicts, inflation in many economies impacting consumption and consumer demand, and customer destocking following a period of supply chain constraints.
The underlying causes for the market volatility being experienced can be attributed to a variety of factors, such as geopolitical tension and conflicts, inflation in many economies impacting consumption and consumer demand, and customer destocking following a period of supply chain constraints.