ZURICH, May 4, 2021
/PRNewswire/ --
Highlights - Nine Months Ended March
31, 2021
- GAAP Net Income of $684 million,
up 58%; GAAP earnings per share (EPS) of 43.8 cents per share, up 63%;
- Adjusted EPS of 51.5 cents per
share, up 16% on a comparable constant currency basis;
- Adjusted EBIT of $1,144 million,
up 9% on a comparable constant currency basis;
- $55 million Bemis cost synergies
year to date; expect approximately $70
million in FY21 and well positioned to deliver at least
$180 million by end of fiscal
2022;
- Quarterly dividend higher than this quarter last year at
11.75 cents per share;
- Approximately 2% of outstanding shares repurchased year to
date; and
- Fiscal 2021 outlook for adjusted EPS growth raised to 14-15% in
constant currency terms (previously 10-14%).
Strong result and continued momentum drive
increased guidance for Fiscal 2021
Amcor's CEO Ron Delia said:
"Amcor is maintaining momentum and executing well in the face of a
dynamic operating environment. As a result, we delivered strong
year-to-date performance and we are raising our full year adjusted
EPS growth outlook to 14-15% in constant currency terms."
"The business delivered strong adjusted EBIT growth of 9% on a
year to date basis and organic growth has continued to strengthen
as we progress through the fiscal 2021 year. Delivery of cost
synergies related to the Bemis acquisition continues to progress
ahead of original expectations leaving us well positioned to exceed
the original target with at least $180
million of pre-tax benefits by the end of fiscal 2022."
"Amcor has a clearly defined, consistent capital allocation
framework which starts with strong annual Free Cash Flow in excess
of $1 billion and growing. We
are actively investing in the future, expanding capacity in higher
value segments and higher growth markets and increasingly using
open innovation and now corporate venturing to identify new avenues
of growth. Growth investments like these, along with continued
strong execution, will enable continued momentum and reinforce our
belief that the Amcor investment case has never been stronger."
Key
Financials(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended
March 31,
|
GAAP
results
|
|
|
|
|
|
2020 $
million
|
|
2021 $
million
|
Net sales
|
|
|
|
|
|
9,325
|
|
9,407
|
Net income
|
|
|
|
|
|
433
|
|
684
|
EPS (diluted US
cents)
|
|
|
|
|
|
26.9
|
|
43.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended
March 31,
|
|
Reported
∆%
|
|
Adjusted non-GAAP
results
|
|
2020 $
million
|
|
2021 $
million
|
|
|
Comparable
constant
currency ∆%
|
Net
sales(2)
|
|
9,325
|
|
9,407
|
|
|
1
|
|
|
2
|
|
EBITDA
|
|
1,378
|
|
1,455
|
|
|
6
|
|
|
6
|
|
EBIT
|
|
1,059
|
|
1,144
|
|
|
8
|
|
|
9
|
|
Net income
|
|
719
|
|
805
|
|
|
12
|
|
|
13
|
|
EPS (diluted US
cents)
|
|
44.7
|
|
51.5
|
|
|
15
|
|
|
16
|
|
Free Cash
Flow
|
|
367
|
|
360
|
|
|
(2)
|
|
|
|
(1) Adjusted
non-GAAP results exclude items which management considers as not
representative of ongoing operations. Comparable constant
currency ∆% excludes the impact of movements in foreign exchange
rates and disposed businesses. Further details related to
non-GAAP measures and reconciliations to GAAP measures can be found
under "Presentation of non-GAAP information" and in the tables
included in this release.
|
(2) Comparable
constant currency ∆% for net sales excludes a 1% unfavorable impact
from the pass through of raw material costs, a 1% unfavorable
impact from disposed businesses and a 1% favorable currency
impact.
|
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.
|
Bemis cost synergies
The Bemis flexible packaging business was acquired through an
all-stock transaction in June
2019.
Amcor has continued to execute well against overhead,
procurement and footprint initiatives and has delivered
approximately $55 million (pre-tax)
of incremental cost synergies year to date. Of this amount,
approximately $45 million was
recognized in the Flexibles segment and $10
million in Other.
Amcor expects incremental cost synergy benefits of approximately
$70 million (pre-tax) in fiscal 2021
which is unchanged from previous guidance. Combined with the
$80 million delivered in fiscal 2020,
this will result in cumulative cost synergies of approximately
$150 million (pre-tax) by the end of
fiscal 2021 and leaves the business well positioned to deliver at
least $180 million (original target)
by the end of fiscal 2022.
Shareholder returns
Dividend
The Amcor Board of Directors today declared a quarterly cash
dividend of 11.75 cents per share
(compared with 11.50 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 15.12 Australian cents per share, which
reflects the quarterly dividend of 11.75
cents per share converted at an AUD:USD average exchange
rate of 0.7769 over the five trading days ended April 29, 2021.
The ex-dividend date will be May 25,
2021, the record date will be May 26,
2021 and the payment date will be June 15, 2021.
Share repurchases
Amcor repurchased 26.7 million shares (1.7% of outstanding
shares) during the nine months ended March
31, 2021 for a total cost of $308
million. The Company expects to complete the previously
approved $350 million repurchase of
ordinary shares and CDIs in fiscal 2021.
Financial results - Nine Months Ended March 31, 2021
Segment information
|
Nine Months Ended
March 31, 2020
|
Nine Months Ended
March 31, 2021
|
Adjusted non-GAAP
results(1)
|
Net
sales
$
million
|
EBIT
$
million
|
EBIT / Sales
%
|
EBIT / Average
funds employed %(2)
|
Net sales $
million
|
EBIT
$
million
|
EBIT /
Sales %
|
EBIT / Average
funds employed %(2)
|
Flexibles
|
7,280
|
|
919
|
|
12.6
|
%
|
|
7,350
|
|
1,005
|
|
13.7
|
%
|
|
Rigid
Packaging
|
2,047
|
|
197
|
|
9.6
|
%
|
|
2,059
|
|
209
|
|
10.1
|
%
|
|
Other
|
(2)
|
|
(57)
|
|
|
|
(2)
|
|
(70)
|
|
|
|
Total
Amcor
|
9,325
|
|
1,059
|
|
11.4
|
%
|
13.7
|
%
|
9,407
|
|
1,144
|
|
12.2
|
%
|
15.1
|
%
|
(1) Adjusted
non-GAAP measures exclude items which management considers as not
representative of ongoing operations. Further details related to
non-GAAP measures and reconciliations to GAAP measures can be found
under "Presentation of non-GAAP financial information" and in the
tables included in this release.
|
(2) Average funds
employed includes shareholders equity and net debt, calculated
using a four quarter average and LTM adjusted EBIT.
|
Year to date net sales for the Amcor Group of $9,407
million were 2% higher than the same period last year on a
comparable constant currency basis. Overall year to date volumes
were 2% higher than the same period last year and price/mix had no
material impact on net sales.
Flexibles
|
|
|
|
|
|
|
|
Comparable
constant currency ∆%
|
|
|
Nine Months Ended
March 31,
|
|
Reported
∆%
|
|
Adjusted non-GAAP
results
|
|
2020 $
million
|
|
2021 $
million
|
|
|
Net
sales(1)
|
|
7,280
|
|
|
7,350
|
|
|
1
|
%
|
|
1
|
%
|
Adjusted
EBIT
|
|
919
|
|
|
1,005
|
|
|
9
|
%
|
|
9
|
%
|
Adjusted EBIT / Sales
%
|
|
12.6
|
|
|
13.7
|
|
|
|
|
|
(1) Comparable
constant currency ∆% for Net sales excludes a 1% favorable currency
impact and a combined 1% unfavorable impact from disposed
businesses and the pass through of raw material
costs. There was no material impact from disposed businesses
on comparable constant currency ∆% for Adjusted EBIT
growth.
|
Year to date net sales were 1% higher than the prior period
driven by higher volumes. There was no material impact from
price/mix.
Year to date segment volume growth of 1% reflects strength
across a broad range of end markets, partially offset by an
unfavorable impact from lower volumes in certain healthcare end
markets driven by fewer elective surgeries and lower prescription
trends during the COVID-19 pandemic.
In North America, year to date
volume growth in the low single digit range was mainly driven by
strength in the meat, frozen food, pet food, condiments and fresh
food end markets as well as specialty folding cartons. This was
partly offset by lower healthcare, home and personal care and
confectionary volumes.
In Europe, year to date volumes
were in line with the same period last year with higher volumes in
cheese, coffee and ready meal end markets offset by lower
yogurt and healthcare volumes.
Year to date volumes grew at mid single digit rates across the
Asian emerging markets, with double digit growth in both
China and India, partly offset by lower volumes in South
East Asia. In Latin America, year to date volumes grew at low
single digit rates compared with the prior period.
Year to date adjusted EBIT of $1,005
million was 9% higher than the prior period on a comparable
constant currency basis. This includes 4% organic growth
primarily reflecting higher volumes and strong operating cost
performance and management. The remaining 5% earnings growth
reflects $45 million of cost synergy
benefits related to the Bemis acquisition.
Adjusted EBIT margin of 13.7% compares with 12.6% for the prior
period.
Rigid
Packaging
|
|
|
|
|
|
|
|
Comparable
constant currency ∆%
|
|
|
|
Nine Months Ended
March 31,
|
|
Reported
∆%
|
|
|
Adjusted non-GAAP
results
|
|
2020 $
million
|
|
2021 $
million
|
|
|
|
Net
sales(1)
|
|
2,047
|
|
|
2,059
|
|
|
1
|
%
|
|
7
|
%
|
|
Adjusted
EBIT
|
|
197
|
|
|
209
|
|
|
6
|
%
|
|
9
|
%
|
|
Adjusted EBIT / Sales
%
|
|
9.6
|
|
|
10.1
|
|
|
|
|
|
|
(1) Comparable
constant currency ∆% for Net sales excludes a 5% unfavorable impact
from the pass through of raw material costs and a 2%
unfavorable currency impact.
|
Year to date net sales were 7% higher than the prior
period. Overall year to date volumes were 4% higher than the
prior period with growth in both North
America and Latin America,
and price/mix had a 3% favorable impact which includes pricing to
recover cost inflation in Latin
America.
In North America, year to date
beverage volumes were 7% higher than the prior period with hot fill
container volumes up 13%. Consumer demand has continued to be
strong, particularly in hot fill juices, hot fill ready to drink
tea and hot fill sports drinks. Strong consumer demand
reflects higher at home consumption of packaged beverages supported
by higher retail sales in multi-pack formats across a range of
product categories. Growth was also driven by brand extensions
and the introduction of new health and wellness oriented products
in PET containers. Specialty container volumes were also
higher than the prior period with growth in certain categories
including spirits, personal care and home cleaning.
In Latin America, year to date
volumes were 2% higher than the prior period with trends continuing
to improve through the nine month period. Year to date volumes
were higher in Brazil,
Central America and Argentina, partly offset by lower volumes
across the rest of the region.
Year to date adjusted EBIT of $209
million was 9% higher than the prior period in constant
currency terms, reflecting positive mix across the business and
higher volumes.
Other
|
|
|
|
|
Nine Months Ended
March 31,
|
Adjusted
EBIT
|
|
2020 $
million
|
|
2021 $
million
|
AMVIG (equity
accounted investment, net of tax) (1)
|
|
8
|
|
|
3
|
|
Corporate
expenses
|
|
(65)
|
|
|
(73)
|
|
Total
Other
|
|
(57)
|
|
|
(70)
|
|
(1) As announced on
24 September 2020, Amcor sold its investment in AMVIG. As a
result no further earnings will be recognized in relation to this
investment.
|
Net interest and income tax expense
Combined year to date net interest and adjusted tax expense was
in line with last year. Net interest expense for the nine
months ended March 31, 2021 was
$103 million compared with
$140 million in the same period last
year, with the decrease primarily driven by lower interest rates on
floating rate debt. Offsetting this, tax expense for the nine
months ended March 31, 2021 (adjusted
to exclude amounts related to non-GAAP adjustments) was
$229 million compared with
$194 million in the same period last
year. Adjusted tax expense represents an effective tax rate of
22.0% in the current period (21.1% in the same period last
year).
Free Cash Flow
Adjusted year to date Free Cash Flow was $360 million. Excluding an unfavorable
impact of approximately $50 million
related to timing of cash tax payments in the US which were
deferred from the fourth quarter of fiscal 2020, year to date
adjusted Free Cash Flow exceeded the same period last year by
approximately 10%.
Balance sheet
Net debt was $5,914 million at
March 31, 2021. Leverage,
measured as net debt divided by adjusted trailing twelve month
EBITDA, was 3.0 times, in line with Amcor's expectations given the
seasonality of cash flows.
Fiscal 2021 guidance
For the twelve month period ending June
30, 2021, the Company expects:
- Adjusted constant currency EPS growth of approximately 14 to
15% (previously 10 to 14%), compared with Adjusted EPS of 64.2 US
cents per share in fiscal 2020. This is inclusive of:
-
- an unfavorable EPS impact from disposed businesses of
approximately 1%;
- pre-tax synergy benefits associated with the Bemis acquisition
of approximately $70 million;
- Assuming current exchange rates prevail for the remainder of
the year, it is estimated that currency would have no material
impact on reported EPS.
- Adjusted free cash flow of approximately $1.0 to $1.1
billion.
Amcor's guidance contemplates a range of factors, including the
COVID-19 pandemic which creates a higher degree of uncertainty and
additional complexity when estimating future financial results.
Amcor's business has demonstrated resilience given that it plays an
important role in the supply of essential consumer goods. While
this is expected to continue, the level of earnings and Free Cash
Flow generated across the business could be impacted by COVID-19
related factors such as the extent and nature of any future
operational disruptions across the supply chain, government imposed
restrictions on consumer mobility and the pace of macroeconomic
recovery in key global economies. The ultimate magnitude and
duration of the pandemic's future impact on the business remains
uncertain at this time.
Conference Call
Amcor is hosting a conference call with investors and analysts
to discuss these results on Tuesday May 4,
2021 at 5:30pm US Eastern
Daylight Time / Wednesday May 5,
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 9628874:
- US & Canada – 866 211
4133
- Australia – 1800 287 011
- United Kingdom – 0800 051
7107
- Singapore – 800 852 6506
- Hong Kong – 800 901 563
From all other countries, the call can be accessed by dialling +1 647 689 6614 (toll).
A replay of the webcast will also be available in the Investors
section on www.amcor.com following the call.
About Amcor
Amcor is a global leader in developing and producing responsible
packaging for food, beverage, pharmaceutical, medical, home and
personal-care, and other products. Amcor works with leading
companies around the world to protect their products and the people
who rely on them, differentiate brands, and improve supply chains
through a range of flexible and rigid packaging, specialty cartons,
closures, and services. The company is focused on making packaging
that uses less materials, is increasingly recyclable and reusable,
and is made with more recycled content. Around 47,000 Amcor people
generate $12.5 billion in annual
sales from operations that span about 230 locations in 40-plus
countries. NYSE: AMCR; ASX: AMC
www.amcor.com I LinkedIn I Facebook
I Twitter I YouTube
Contact Information
Investors
|
|
|
|
|
Tracey
Whitehead
|
|
Damien
Bird
|
|
|
Global Head of
Investor Relations, Amcor
|
|
Vice President
Investor Relations, Amcor
|
|
|
+61 3 9226 9028 / +1
224 478 5790
|
|
+61 3 9226
9070
|
|
|
tracey.whitehead@amcor.com
|
|
damien.bird@amcor.com
|
|
|
|
|
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|
Media -
Australia
|
|
Media -
Europe
|
|
Media - North
America
|
James
Strong
|
|
Ernesto
Duran
|
|
Daniel
Yunger
|
Citadel-MAGNUS
|
|
Head of Global
Communications, Amcor
|
|
Kekst CNC
|
+61 448 881
174
|
|
+41 78 698 69
40
|
|
+1 212 521
4879
|
jstrong@citadelmagnus.com
|
|
ernesto.duran@amcor.com
|
|
daniel.yunger@kekstcnc.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," "estimate," "potential," "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. None of Amcor 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 actual
results to differ from expectations include, but are not limited
to: the continued financial and operational impacts of the
COVID-19 pandemic on Amcor and its customers, suppliers, employees
and the geographic markets in which it and its customers operate;
fluctuations in consumer demand patterns; the loss of key customers
or a reduction in production requirements of key customers;
significant competition in the industries and regions in which
Amcor operates; failure to successfully integrate acquisitions in
the expected time frame; failure by Amcor to expand its business;
the potential loss of intellectual property rights; various risks
that could affect our business operations and financial results due
to our international operations; price fluctuations or shortages in
the availability of raw materials, energy and other inputs;
disruptions to production, supply and commercial risks, including
counterparty credit risks, which may be exacerbated in times of
economic downturn; a failure in our information technology systems;
the possibility of labor disputes; fluctuations in our credit
ratings; disruptions to the financial or capital markets; and other
risks and uncertainties identified from time to time in Amcor's
filings with the U.S. Securities and Exchange Commission (the
"SEC"), including without limitation, those described under Item
1A. "Risk Factors" of Amcor's annual report on Form 10-K for the
fiscal year ended June 30, 2020 and
any subsequent 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 EBIT (calculated as earnings before
interest and tax), adjusted net income, adjusted earnings per
share, adjusted free cash flow, and net debt and comparable
constant currency growth. 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. 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
the restructuring plan;
- sales and earnings from disposed businesses and any associated
profit or loss on sale of businesses or subsidiaries;
- consummated and identifiable divestitures agreed to with
certain regulatory agencies as a condition of approval for Amcor's
acquisition of Bemis;
- 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
combinations;
- payments or settlements related to legal claims; and
- impacts from hyperinflation accounting
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 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 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 deduct the difference between sales or
earnings in the current period and the prior period related to
disposed operations. Comparable constant currency net sales
performance also excludes the impact from passing through movements
in raw material costs. 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 May 25, 2021 to May 26,
2021 inclusive.
U.S. GAAP
Condensed Consolidated Statements of Income
(Unaudited)
|
|
|
|
|
|
|
|
Three Months Ended
March 31,
|
|
Nine Months Ended
March 31,
|
($
million)
|
|
2020
|
|
2021
|
|
2020
|
|
2021
|
Net sales
|
|
3,141
|
|
|
3,207
|
|
|
9,325
|
|
|
9,407
|
|
Cost of
sales
|
|
(2,489)
|
|
|
(2,525)
|
|
|
(7,509)
|
|
|
(7,420)
|
|
Gross
profit
|
|
652
|
|
|
682
|
|
|
1,816
|
|
|
1,987
|
|
Selling, general and
administrative expenses
|
|
(354)
|
|
|
(325)
|
|
|
(1,034)
|
|
|
(962)
|
|
Research and
development expenses
|
|
(25)
|
|
|
(25)
|
|
|
(74)
|
|
|
(74)
|
|
Restructuring and
related expenses, net
|
|
(20)
|
|
|
24
|
|
|
(62)
|
|
|
(22)
|
|
Other income,
net
|
|
18
|
|
|
17
|
|
|
38
|
|
|
27
|
|
Operating
income
|
|
271
|
|
|
373
|
|
|
684
|
|
|
956
|
|
Interest expense,
net
|
|
(41)
|
|
|
(33)
|
|
|
(140)
|
|
|
(103)
|
|
Other non-operating
income, net
|
|
6
|
|
|
1
|
|
|
18
|
|
|
7
|
|
Income from
continuing operations before income taxes and equity in income
(loss) of affiliated companies
|
|
236
|
|
|
341
|
|
|
562
|
|
|
860
|
|
Income tax
expense
|
|
(56)
|
|
|
(71)
|
|
|
(123)
|
|
|
(187)
|
|
Equity in income of
affiliated companies, net of tax
|
|
3
|
|
|
—
|
|
|
8
|
|
|
19
|
|
Income from
continuing operations
|
|
183
|
|
|
270
|
|
|
447
|
|
|
692
|
|
Loss from
discontinued operations, net of tax(1)
|
|
—
|
|
|
—
|
|
|
(8)
|
|
|
—
|
|
Net income
|
|
183
|
|
|
270
|
|
|
439
|
|
|
692
|
|
Net income
attributable to non-controlling interests
|
|
(2)
|
|
|
(3)
|
|
|
(6)
|
|
|
(8)
|
|
Net income
attributable to Amcor plc
|
|
181
|
|
|
267
|
|
|
433
|
|
|
684
|
|
USD:EUR FX
rate
|
|
0.9070
|
|
|
0.8295
|
|
|
0.9032
|
|
|
0.8414
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per
share attributable to Amcor
|
|
0.114
|
|
|
0.173
|
|
|
0.269
|
|
|
0.439
|
|
Diluted earnings per
share attributable to Amcor
|
|
0.114
|
|
|
0.173
|
|
|
0.269
|
|
|
0.438
|
|
Weighted average
number of shares outstanding – Basic
|
|
1,594
|
|
|
1,549
|
|
|
1,610
|
|
|
1,556
|
|
Weighted average
number of shares outstanding - Diluted
|
|
1,595
|
|
|
1,550
|
|
|
1,611
|
|
|
1,562
|
|
(1) Represents
income/(loss) generated from three former Bemis plants located in
the United Kingdom and Ireland from July 1, 2019 to August 8,
2019. Amcor announced the disposal of these assets to
Kohlberg & Company on June 25, 2019. This divestment was
required by the European Commission at the time of approving
Amcor's acquisition of Bemis on February 11, 2019.
|
U.S. GAAP
Condensed Consolidated Statements of Cash Flows
(Unaudited)
|
|
|
|
|
|
Nine Months Ended
March 31,
|
($
million)
|
|
2020
|
|
2021
|
Net income
|
|
439
|
|
|
692
|
|
Depreciation,
amortization and impairment
|
|
499
|
|
|
426
|
|
Changes in operating
assets and liabilities
|
|
(441)
|
|
|
(514)
|
|
Other non-cash
items
|
|
(27)
|
|
|
13
|
|
Net cash provided by
operating activities
|
|
470
|
|
|
617
|
|
Purchase of property,
plant and equipment and other intangible assets
|
|
(313)
|
|
|
(335)
|
|
Proceeds from sale of
property, plant and equipment and other intangible
assets
|
|
5
|
|
|
6
|
|
Proceeds from
divestiture
|
|
425
|
|
|
214
|
|
Net debt
proceeds
|
|
468
|
|
|
262
|
|
Dividends
paid
|
|
(574)
|
|
|
(556)
|
|
Share
buy-back/cancellations
|
|
(478)
|
|
|
(308)
|
|
Other, including
effects of exchange rate on cash and cash equivalents
|
|
(67)
|
|
|
47
|
|
Net decrease in cash
and cash equivalents
|
|
(64)
|
|
|
(53)
|
|
Cash and cash
equivalents at the beginning of the period
|
|
602
|
|
|
743
|
|
Cash and cash
equivalents at the end of the period
|
|
538
|
|
|
690
|
|
U.S. GAAP
Condensed Consolidated Balance Sheets (Unaudited)
|
|
($
million)
|
|
June 30,
2020
|
|
March 31,
2021
|
Cash and cash
equivalents
|
|
743
|
|
|
690
|
|
Trade receivables,
net
|
|
1,616
|
|
|
1,775
|
|
Inventories,
net
|
|
1,832
|
|
|
1,876
|
|
Property, plant and
equipment, net
|
|
3,615
|
|
|
3,681
|
|
Goodwill and other
intangible assets, net
|
|
7,333
|
|
|
7,267
|
|
Other
assets
|
|
1,303
|
|
|
1,303
|
|
Total
assets
|
|
16,442
|
|
|
16,592
|
|
Trade
payables
|
|
2,171
|
|
|
1,986
|
|
Short-term debt and
current portion of long-term debt
|
|
206
|
|
|
107
|
|
Long-term debt, less
current portion
|
|
6,028
|
|
|
6,497
|
|
Accruals and other
liabilities
|
|
3,350
|
|
|
3,297
|
|
Shareholders
equity
|
|
4,687
|
|
|
4,705
|
|
Total liabilities and
shareholders equity
|
|
16,442
|
|
|
16,592
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Non-GAAP Measures
|
Reconciliation of
adjusted Earnings before interest, tax, depreciation and
amortization (EBITDA), Earnings before interest
and tax (EBIT), Net income and Earnings per share
(EPS)
|
|
|
|
|
|
|
|
Nine Months Ended
March 31, 2020
|
|
Nine Months Ended
March 31, 2021
|
($
million)
|
|
EBITDA
|
|
EBIT
|
|
Net
Income
|
|
EPS
(Diluted
US
cents)
|
|
EBITDA
|
|
EBIT
|
|
Net
Income
|
|
EPS (Diluted US
cents)
|
Net income
attributable to Amcor
|
|
433
|
|
|
433
|
|
|
433
|
|
|
26.9
|
|
|
684
|
|
|
684
|
|
|
684
|
|
|
43.8
|
|
Net income
attributable to non-controlling interests
|
|
6
|
|
|
6
|
|
|
|
|
|
|
8
|
|
|
8
|
|
|
|
|
|
(Income) loss from
discontinued operations
|
|
8
|
|
|
8
|
|
|
8
|
|
|
0.5
|
|
|
—
|
|
|
—
|
|
|
|
|
|
Tax
expense
|
|
123
|
|
|
123
|
|
|
|
|
|
|
187
|
|
|
187
|
|
|
|
|
|
Interest expense,
net
|
|
140
|
|
|
140
|
|
|
|
|
|
|
103
|
|
|
103
|
|
|
|
|
|
Depreciation and
amortization
|
|
469
|
|
|
|
|
|
|
|
|
432
|
|
|
|
|
|
|
|
EBITDA, EBIT, Net
income and EPS
|
|
1,179
|
|
|
710
|
|
|
441
|
|
|
27.4
|
|
|
1,414
|
|
|
982
|
|
|
684
|
|
|
43.8
|
|
Material
restructuring and related costs(1)
|
|
60
|
|
|
60
|
|
|
60
|
|
|
3.7
|
|
|
16
|
|
|
16
|
|
|
16
|
|
|
1.0
|
|
Net gain on
disposals(2)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(9)
|
|
|
(9)
|
|
|
(9)
|
|
|
(0.6)
|
|
Material transaction
and other costs(3)
|
|
116
|
|
|
116
|
|
|
116
|
|
|
7.2
|
|
|
17
|
|
|
17
|
|
|
17
|
|
|
1.1
|
|
Material impact of
hyperinflation
|
|
23
|
|
|
23
|
|
|
23
|
|
|
1.5
|
|
|
17
|
|
|
17
|
|
|
17
|
|
|
1.1
|
|
Amortization of
acquired intangibles(4)
|
|
|
|
150
|
|
|
150
|
|
|
9.3
|
|
|
|
|
121
|
|
|
121
|
|
|
7.7
|
|
Tax effect of above
items
|
|
|
|
|
|
(71)
|
|
|
(4.4)
|
|
|
|
|
|
|
(41)
|
|
|
(2.6)
|
|
Adjusted EBITDA,
EBIT, Net income and EPS
|
|
1,378
|
|
|
1,059
|
|
|
719
|
|
|
44.7
|
|
|
1,455
|
|
|
1,144
|
|
|
805
|
|
|
51.5
|
|
Reconciliation of
adjusted growth to comparable constant currency
growth
|
|
|
|
|
|
|
|
|
|
|
% growth -
Adjusted EBITDA, EBIT, Net income and EPS
|
|
|
|
|
|
|
|
6
|
|
|
8
|
|
|
12
|
|
|
15
|
|
% disposed
businesses
|
|
|
|
|
|
|
|
|
|
—
|
|
|
(1)
|
|
|
(1)
|
|
|
(1)
|
|
% currency
impact
|
|
|
|
|
|
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
% comparable
constant currency growth
|
|
|
|
|
|
|
|
|
|
6
|
|
|
9
|
|
|
13
|
|
|
16
|
|
(1) The nine months
ended March 31, 2021 includes a $52 million gain realized upon
disposal of a non-core European hospital supplies business as part
of optimizing its portfolio under the Bemis Integration
restructuring plan.
|
(2) Includes $15
million gain realized upon disposal of AMVIG and losses on disposal
of other non-core businesses.
|
(3) Includes costs
associated with the Bemis acquisition. The nine months ended March
31, 2020 includes $58 million of acquisition related inventory fair
value step-up costs.
|
(4) The nine months
ended March 31, 2020 includes $26 million of sales backlog
amortization related to the Bemis acquisition.
|
Reconciliation of
adjusted EBIT by reporting segment
|
|
|
|
|
|
|
|
Nine Months Ended
March 31, 2020
|
|
Nine Months Ended
March 31, 2021
|
($
million)
|
|
Flexibles
|
|
Rigid
Packaging
|
|
Other(1)
|
|
Total
|
|
Flexibles
|
|
Rigid
Packaging
|
|
Other(1)
|
|
Total
|
Net income
attributable to Amcor
|
|
|
|
|
|
|
|
433
|
|
|
|
|
|
|
|
|
684
|
|
Net income
attributable to non-controlling interests
|
|
|
|
|
|
|
|
6
|
|
|
|
|
|
|
|
|
8
|
|
(Income) loss from
discontinued operations
|
|
|
|
|
|
|
|
8
|
|
|
|
|
|
|
|
|
—
|
|
Tax
expense
|
|
|
|
|
|
|
|
123
|
|
|
|
|
|
|
|
|
187
|
|
Interest expense,
net
|
|
|
|
|
|
|
|
140
|
|
|
|
|
|
|
|
|
103
|
|
EBIT
|
|
655
|
|
|
154
|
|
|
(99)
|
|
|
710
|
|
|
810
|
|
|
174
|
|
|
(2)
|
|
|
982
|
|
Material
restructuring and related costs(2)
|
|
42
|
|
|
14
|
|
|
4
|
|
|
60
|
|
|
63
|
|
|
13
|
|
|
(60)
|
|
|
16
|
|
Net (gain) / loss on
disposals(3)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6
|
|
|
—
|
|
|
(15)
|
|
|
(9)
|
|
Material transaction
and other costs(4)
|
|
76
|
|
|
2
|
|
|
38
|
|
|
116
|
|
|
9
|
|
|
1
|
|
|
7
|
|
|
17
|
|
Material impact of
hyperinflation
|
|
—
|
|
|
23
|
|
|
—
|
|
|
23
|
|
|
—
|
|
|
17
|
|
|
—
|
|
|
17
|
|
Amortization of
acquired intangibles(5)
|
|
146
|
|
|
4
|
|
|
—
|
|
|
150
|
|
|
117
|
|
|
4
|
|
|
—
|
|
|
121
|
|
Adjusted
EBIT(6)
|
|
919
|
|
|
197
|
|
|
(57)
|
|
|
1,059
|
|
|
1,005
|
|
|
209
|
|
|
(70)
|
|
|
1,144
|
|
Adjusted EBIT /
sales %
|
|
12.6
|
%
|
|
9.6
|
%
|
|
|
|
11.4
|
%
|
|
13.7
|
%
|
|
10.1
|
%
|
|
|
|
12.2
|
%
|
Reconciliation of
adjusted growth to comparable constant currency
growth
|
|
|
|
|
|
|
|
|
% growth -
Adjusted EBIT
|
|
|
|
|
|
|
|
|
|
9
|
|
|
6
|
|
|
|
|
8
|
|
% disposed
businesses
|
|
|
|
|
|
|
|
|
|
—
|
|
|
—
|
|
|
|
|
(1)
|
|
% currency
impact
|
|
|
|
|
|
|
|
|
|
—
|
|
|
(3)
|
|
|
|
|
—
|
|
% comparable
constant currency
|
|
|
|
|
|
|
|
|
|
9
|
|
|
9
|
|
|
|
|
9
|
|
(1) Other includes
equity in income (loss) of affiliated companies, net of tax and
general corporate expenses.
|
(2) The nine months
ended March 31, 2021 includes a $52 million net gain realized upon
disposal of a non-core European hospital supplies business as part
of optimizing its portfolio under the Bemis Integration
restructuring plan. A loss of $11 million and a gain of $63
million has been recognized in the Flexibles and Other segments
respectively.
|
(3) Includes $15
million gain realized upon disposal of AMVIG and losses on disposal
of other non-core businesses.
|
(4) Includes costs
associated with the Bemis acquisition. The nine months ended March
31, 2020 includes $58 million of acquisition related inventory fair
value step-up costs.
|
(5) The nine months
ended March 31, 2020 includes $26 million of sales backlog
amortization related to the Bemis acquisition.
|
(6) During the first
quarter of fiscal 2021, the Company reported that it revised the
presentation of the reportable segments adjusted EBIT to include an
allocation of certain research and development and selling, general
and administrative expenses that management previously reflected in
Other. Prior periods have been recast to conform to the new
cost allocation methodology.
|
Reconciliations of
adjusted Free Cash Flow
|
|
|
|
|
|
Nine Months Ended
March 31,
|
($
million)
|
|
2020
|
|
2021
|
Net cash provided
from operating activities
|
|
470
|
|
|
617
|
|
Purchase of property,
plant and equipment and other intangible assets
|
|
(313)
|
|
|
(335)
|
|
Proceeds from sale of
property, plant and equipment and other intangible
assets
|
|
5
|
|
|
6
|
|
Operating cash flow
related to divested operations
|
|
60
|
|
|
—
|
|
Material transaction
and integration related costs(1)
|
|
145
|
|
|
72
|
|
Adjusted Free Cash
Flow(2)
|
|
367
|
|
|
360
|
|
(1) The nine months
ended March 31, 2021 and 2020 includes cash restructuring and
integration costs of approximately $51 million and $69 million
respectively.
|
(2) Adjusted free
cash flow excludes material transaction related costs because these
cash flows are not considered to be directly related to the
underlying business.
|
|
|
|
Nine Months Ended
March 31,
|
($
million)
|
|
2020
|
|
2021
|
Adjusted
EBITDA
|
|
1,378
|
|
|
1,455
|
|
Interest paid,
net
|
|
(116)
|
|
|
(79)
|
|
Income tax
paid(1)
|
|
(131)
|
|
|
(218)
|
|
Purchase of property,
plant and equipment and other intangible assets
|
|
(313)
|
|
|
(335)
|
|
Proceeds from sale of
property, plant and equipment and other intangible
assets
|
|
5
|
|
|
6
|
|
Movement in working
capital
|
|
(428)
|
|
|
(451)
|
|
Other
|
|
(28)
|
|
|
(18)
|
|
Adjusted Free Cash
Flow(2)
|
|
367
|
|
|
360
|
|
(1) The nine months
ended March 31, 2020 excludes tax cash paid of $95 million related
to disposal proceeds from divestments which were required by the
European Commission and the U.S. Department of Justice at the time
of approving Amcor's acquisition of Bemis.
|
(2) Adjusted Free
Cash Flow excludes material transaction related costs because these
cash flows are not considered to be directly related to the
underlying business.
|
Reconciliation of
net debt
|
|
($
million)
|
|
June 30,
2020
|
|
March 31,
2021
|
Cash and cash
equivalents
|
|
(743)
|
|
|
(690)
|
|
Short-term
debt
|
|
195
|
|
|
94
|
|
Current portion of
long-term debt
|
|
11
|
|
|
13
|
|
Long-term debt
excluding current portion of long-term debt
|
|
6,028
|
|
|
6,497
|
|
Net
debt
|
|
5,492
|
|
|
5,914
|
|
View original
content:http://www.prnewswire.com/news-releases/amcor-reports-year-to-date-results-and-raises-outlook-for-fiscal-2021-301282806.html
SOURCE Amcor