ZURICH, Aug. 17, 2021 /PRNewswire/ --
2021 Fiscal Year Highlights
- GAAP Net Income of $939 million,
up 53%; GAAP earnings per share (EPS) of 60.2 cps, up 58%;
- Adjusted EPS of 74.4 cps, up 16% on a comparable constant
currency basis, above guidance range;
- Adjusted Free Cash Flow of $1.1
billion, at upper end of guidance range;
- Bemis integration completed - financial targets exceeded and
stronger foundation for growth: approximately $75 million of cost synergies in FY21 and expect
total to exceed original $180 million
target by at least 10%;
- Strong cash returns to shareholders: annual dividend increased
to 47.0 cents per share, including
11.75 cents per share declared today.
$350 million shares repurchased in
FY21 (approximately 2% of outstanding shares);
- Accelerating sustainability agenda and delivery of responsible
packaging solutions; and
- Fiscal 2022 outlook: Adjusted EPS growth of 7-11% on a
comparable constant currency basis and Adjusted Free Cash Flow of
$1.1-$1.2
billion. Allocating approximately $400 million of cash towards share
repurchases.
An outstanding
year, exceeding expectations
|
Amcor's CEO Mr. Ron
Delia said: "Amcor delivered record full year earnings in 2021, as
our teams successfully executed against our strategy, delivered
growth and increased EBIT margins while managing exceptionally well
through steep raw material cost increases and supply
constraints. EPS was 16% higher than last year, ahead of our
upgraded guidance and we generated Free Cash Flow of $1.1 billion
while increasing capital investments to generate future growth in
our most attractive segments. The strong cash flow also enabled
significant cash returns to shareholders through a higher annual
dividend and the repurchase of shares. Across the business we
ended the year with good momentum and we expect another strong year
in fiscal 2022."
"In the two years
following our transformational acquisition of Bemis, we have
strengthened our financial profile and consistently built earnings
momentum. The integration is essentially complete and we will
exceed our original $180 million cost synergy target by at least
10% and Free Cash Flow for fiscal 2022 is expected to be almost
double pre acquisition levels. Amcor is now better positioned
strategically than ever with global scale, strong innovation
capabilities and greater exposure to more attractive, higher growth
end markets like healthcare and protein which offer more potential
for differentiation and growth. This improved foundation will
enable stronger growth and value creation for all stakeholders into
the future."
|
Key Financials(1)
|
|
|
|
|
|
Twelve Months
Ended June 30,
|
GAAP
results
|
|
|
|
|
|
2020 $
million
|
|
2021 $
million
|
Net sales
|
|
|
|
|
|
12,468
|
|
|
12,861
|
|
Net income
|
|
|
|
|
|
612
|
|
|
939
|
|
EPS (diluted US
cents)
|
|
|
|
|
|
38.2
|
|
|
60.2
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve Months
Ended June 30,
|
|
Reported
∆%
|
|
Comparable
constant
currency
∆%
|
Adjusted non-GAAP
results
|
|
2020 $
million
|
|
2021 $
million
|
|
|
Net
sales(2)
|
|
12,468
|
|
|
12,861
|
|
|
3
|
|
|
2
|
|
EBITDA
|
|
1,913
|
|
|
2,028
|
|
|
6
|
|
|
6
|
|
EBIT
|
|
1,497
|
|
|
1,621
|
|
|
8
|
|
|
8
|
|
Net income
|
|
1,028
|
|
|
1,158
|
|
|
13
|
|
|
13
|
|
EPS (diluted US
cents)
|
|
64.2
|
|
|
74.4
|
|
|
16
|
|
|
16
|
|
Free Cash Flow
(before dividends)
|
|
1,220
|
|
|
1,099
|
|
|
|
|
|
|
(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.
|
(2) Comparable
constant currency ∆% for net sales excludes a 2% favorable currency
impact and a 1% unfavorable impact from items affecting
comparability. There was no material impact from the pass through
of raw material costs on comparable constant currency ∆% for net
sales.
|
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 Company was acquired through an all-stock transaction
in June 2019.
Amcor continued to execute well against overhead, procurement
and footprint initiatives and delivered approximately $75 million (pre-tax) of incremental cost
synergies during fiscal 2021. Of this amount, approximately
$65 million was recognized in the
Flexibles segment and approximately $10
million in Other.
Combined with the $80 million
delivered in fiscal 2020, cumulative costs synergies have reached
approximately $155 million.
Amcor expects to exceed the original target of $180 million by the end of fiscal 2022 by at
least 10%.
Cash Returns to Shareholders
Amcor generates significant and growing Free Cash Flow,
maintains strong credit metrics and is committed to an investment
grade credit rating. This annual Free Cash Flow provides
substantial capacity to simultaneously reinvest in the business,
pursue acquisitions and return cash to shareholders through a
compelling and growing dividend as well as share repurchases.
Dividend
The Amcor Board of Directors today declared a quarterly cash
dividend of 11.75 cents per
share. Combined with the last three quarterly dividends, this
increases the annual dividend for fiscal 2021 to 47.0 US cents per
share. The quarterly dividend declared today 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 15.93 Australian cents per share, which
reflects the quarterly dividend of 11.75
cents per share converted at an average AUD:USD exchange
rate of 0.7374 over the five trading days ended August 10, 2021.
The ex-dividend date will be September 7,
2021, the record date will be September 8, 2021 and the payment date will be
September 28, 2021.
Share repurchases
$350 million was used to
repurchase shares in fiscal 2021 which reduced the total number of
shares issued and outstanding by approximately 2%.
Amcor expects to allocate approximately $400 million of cash towards share repurchases in
the 2022 fiscal year.
2021 financial results
Segment Information
|
Twelve Months
Ended June 30, 2020
|
Twelve Months
Ended June 30, 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
|
9,755
|
|
1,296
|
|
13.3
|
|
|
10,040
|
|
1,427
|
|
14.2
|
|
|
Rigid
Packaging
|
2,716
|
|
284
|
|
10.4
|
|
|
2,823
|
|
299
|
|
10.6
|
|
|
Other
|
(3)
|
|
(83)
|
|
|
|
(2)
|
|
(105)
|
|
|
|
Total
Amcor
|
12,468
|
|
1,497
|
|
12.0
|
|
14.0
|
|
12,861
|
|
1,621
|
|
12.6
|
|
15.4
|
|
|
(1) Adjusted
non-GAAP measures exclude items which are not considered
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 Last Twelve Months adjusted
EBIT.
|
Full year net sales for the Amcor Group of $12,861 million
were 2% higher than the prior year on a comparable constant
currency basis. Overall volumes were 2% higher than the prior
year and price/mix had no material impact on net sales.
EBIT margins increase by 60 basis points to 12.6% and return on
average funds employed of 15.4% increased by 140 basis points
compared with the prior year.
Flexibles
|
|
Twelve Months
Ended June 30,
|
|
Reported
∆%
|
|
Comparable
constant
currency
∆%
|
|
|
2020 $
million
|
|
2021 $
million
|
|
|
Net
sales(1)
|
|
9,755
|
|
|
10,040
|
|
|
3
|
|
|
—
|
|
Adjusted
EBIT
|
|
1,296
|
|
|
1,427
|
|
|
10
|
|
|
9
|
|
Adjusted EBIT / Sales
%
|
|
13.3
|
|
|
14.2
|
|
|
|
|
|
|
(1) Comparable
constant currency ∆% for Net sales excludes a 2% favorable currency
impact, a 1% unfavorable impact from items affecting
comparability (disposed businesses) and a 1% favorable impact from
the pass though of raw material costs.
|
Net sales includes more than $100
million of price increases in the fourth quarter ending
30 June 2021, related to the pass
through of higher raw material input costs.
Full year net sales on a comparable constant currency basis were
marginally higher than the prior period with 1% higher volumes
partially offset by price/mix.
Full year segment volume growth of 1% reflects strong growth
across a range of higher value end markets including meat, coffee
and pet food, which was mostly offset by lower volumes in certain
healthcare end markets driven by fewer elective surgeries and
prescriptions trends during the COVID-19 pandemic.
In North America, low single
digit volume growth for fiscal 2021 was mainly driven by strength
in the meat, frozen food and condiments end markets. This was
partly offset by lower healthcare, home and personal care
volumes.
In Europe, full year volumes
were marginally lower than the same period last year with higher
volumes in the pet food, cheese and coffee end markets offset by
lower healthcare and yogurt
volumes.
Full year 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, fiscal 2021 volumes grew at low
single digit rates compared with the prior period.
Adjusted EBIT for fiscal 2021 of $1,427
million was 9% higher than the prior period on a comparable
constant currency basis. This includes 4% organic growth
primarily reflecting higher volumes and outstanding margin
management through the year. The remaining growth reflects
approximately $65 million of cost
synergy benefits related to the Bemis acquisition.
Adjusted EBIT margin expanded by 90 basis points to 14.2%
compared with the prior year.
Rigid
Packaging
|
|
Twelve Months
Ended June 30,
|
|
Reported
∆%
|
|
Comparable
constant
currency
∆%
|
|
|
2020 $
million
|
|
2021 $
million
|
|
|
Net
sales(1)
|
|
2,716
|
|
|
2,823
|
|
|
4
|
|
|
8
|
|
Adjusted
EBIT
|
|
284
|
|
|
299
|
|
|
6
|
|
|
8
|
|
Adjusted EBIT / Sales
%
|
|
10.4
|
|
|
10.6
|
|
|
|
|
|
|
(1) Comparable
constant currency ∆% for Net sales excludes a 3% unfavorable impact
from the pass through of raw material costs and a 1%
unfavorable currency impact.
|
Full year net sales on a comparable constant currency basis were
8% higher than the prior year. Overall volumes were 5% higher
than the prior period with broad growth across 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, full year
beverage volumes were 8% higher than the prior year with hot fill
container volumes up 13%. Growth was driven by rising
consumer demand through the year which resulted in capacity
shortages across the industry. Demand was particularly strong
in hot fill categories including sports drinks, ready to drink tea
and juice reflecting higher consumption and new product innovation
in categories where the preferred package format is the PET
container. Specialty container volumes were also higher than
the prior year with good growth in the spirits, home and personal
care categories, partly offset by lower healthcare
volumes.
In Latin America, full year
volumes were 5% higher than the prior year with sequential
improvement in each quarter. Volumes grew in particular in
Brazil and Argentina, partly offset by lower volumes in
certain other markets in the region.
Adjusted EBIT for fiscal 2021 of $299
million was 8% higher than the prior year in comparable
constant currency terms. Positive mix across the business and
higher volumes were partly offset by increased labor and
transportation costs incurred in North
America to service rapidly increasing volume ahead of
installing additional capacity.
Other
|
|
Twelve Months
Ended June 30,
|
Adjusted
EBIT
|
|
2020 $
million
|
|
2021 $
million
|
Equity earnings in
affiliates, net of tax
|
|
12
|
|
|
3
|
|
Corporate
expenses
|
|
(95)
|
|
|
(108)
|
|
Total
Other
|
|
(83)
|
|
|
(105)
|
|
Net interest and income tax expense
Combined net interest and adjusted tax expense were broadly in
line with last year. Net interest expense for the twelve months
ended June 30, 2021 was $139 million compared with $185 million in the same period last year, with
the decrease primarily driven by lower interest rates on floating
rate debt. Offsetting this, adjusted tax expense for the
twelve months ended June 30, 2021
(adjusted to exclude amounts related to non-GAAP adjustments) was
$313 million compared with
$276 million in the same period last
year. Adjusted tax expense represents an effective tax rate
of 21.1% in the current period (21.0% in the same period last
year).
Free Cash Flow
Adjusted Free Cash Flow for fiscal 2021 was $1,099 million. This is lower than the
prior year as higher EBITDA growth was offset by the adverse impact
from the timing of tax payments and a lower working capital benefit
compared with fiscal 2020 when the business released more than
$200 million of cash from working
capital following the Bemis acquisition. Working capital
performance remained strong through fiscal 2021 with Amcor's twelve
month average working capital to sales ratio decreasing to 8%.
Balance sheet
Net debt was $5,439 million at
June 30, 2021, and leverage, measured
as net debt divided by adjusted trailing twelve month EBITDA was
2.7 times.
Fiscal 2022 guidance
Amcor's guidance contemplates a range of factors, however the
COVID-19 pandemic creates higher degrees of uncertainty and
additional complexity when estimating future financial results.
For the twelve month period ending 30 June 2022, the Company expects:
- Adjusted EPS growth of approximately 7 to 11% on a comparable
constant currency basis, or approximately 79.0 to 81.0 cents per share on a reported basis assuming
current exchange rates prevail through fiscal 2022.
- Adjusted Free Cash Flow of approximately $1.1 to $1.2
billion.
- Approximately $400 million of
cash to be allocated towards share repurchases.
While Amcor's business is expected to continue demonstrating
resilience given it plays an important role in the supply of
essential consumer goods, 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 impact on the Company's business remains
uncertain at this time.
Conference Call
Amcor is hosting a conference call with investors and analysts
to discuss these results on Tuesday August
17, 2021 at 5:30pm US Eastern
Daylight Time / Wednesday August 18,
2021 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 1892522:
- 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 dialing +1
647 689 6614 (toll).
A replay of the webcast will also be available 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 is increasingly light-weighted, recyclable and reusable, and
made using an increasing amount of recycled content. Around 46,000
Amcor people generate $13 billion in
annual sales from operations that span about 225 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
|
|
|
Head of Investor
Relations
|
|
Vice President
Investor Relations
|
|
|
Amcor
|
|
Amcor
|
|
|
+61 3 9226
9028
|
|
+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
|
|
|
Head of Global
Communications
|
|
|
Citadel-MAGNUS
|
|
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
|
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: changes in consumer demand patterns and customer requirements,
the loss of key customers, a reduction in production requirements
of key customers; significant competition in the industries and
regions in which Amcor operates; failure by Amcor to expand its
business; failure to successfully integrate acquisitions;
challenges to or the loss of Amcor's intellectual property rights;
adverse impacts from the ongoing COVID-19 pandemic; challenging
future global economic conditions; impact of operating
internationally; price fluctuations or shortages in the
availability of raw materials and other inputs; disruptions to
production, supply and commercial risks; a failure in our
information technology systems; an inability to attract and retain
key personnel; costs and liabilities related to current and future
environmental and health and safety laws and regulations; labor
disputes; foreign exchange rate risk; an increase in interest
rates; a significant increase in indebtedness; failure to hedge
effectively against adverse fluctuations in interest rates and
foreign exchange rates; significant write-down of goodwill and/or
other intangible assets; need to maintain an effective system of
internal control over financial reporting; inability of the
Company's insurance policies to provide adequate protections;
increasing scrutiny and changing expectations with respect to Amcor
Environmental, Social and Governance policies resulting in
increased costs; litigation, including product liability claims;
changing government regulations in environmental, health and safety
matters; changes in tax laws or changes in our geographic mix of
earnings; and the Company's ability to develop and successfully
introduce new products; 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. 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, plant, 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;
- material sales and earnings from disposed or ceased operations
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 hyperinflationary accounting
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 acquired,
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 September
7, 2021 to September 8, 2021
inclusive.
U.S. GAAP
Condensed Consolidated Statements of Income
(Unaudited)
|
|
|
|
Twelve Months
Ended June 30,
|
($
million)
|
|
2019
|
|
2020
|
|
2021
|
Net sales
|
|
9,458
|
|
|
12,468
|
|
|
12,861
|
|
Cost of
sales
|
|
(7,659)
|
|
|
(9,932)
|
|
|
(10,129)
|
|
Gross
profit
|
|
1,799
|
|
|
2,536
|
|
|
2,732
|
|
Selling, general and
administrative expenses
|
|
(999)
|
|
|
(1,385)
|
|
|
(1,292)
|
|
Research and
development expenses
|
|
(64)
|
|
|
(97)
|
|
|
(100)
|
|
Restructuring and
related expenses, net
|
|
(131)
|
|
|
(115)
|
|
|
(94)
|
|
Other income,
net
|
|
187
|
|
|
55
|
|
|
75
|
|
Operating
income
|
|
792
|
|
|
994
|
|
|
1,321
|
|
Interest expense,
net
|
|
(191)
|
|
|
(185)
|
|
|
(139)
|
|
Other non-operating
income, net
|
|
3
|
|
|
16
|
|
|
11
|
|
Income from
continuing operations before income taxes and equity in income
(loss) of
affiliated companies
|
|
604
|
|
|
825
|
|
|
1,193
|
|
Income tax
expense
|
|
(172)
|
|
|
(187)
|
|
|
(261)
|
|
Equity in income
(loss) of affiliated companies, net of tax
|
|
4
|
|
|
(14)
|
|
|
19
|
|
Income from
continuing operations
|
|
436
|
|
|
624
|
|
|
951
|
|
Income (loss) from
discontinued operations, net of tax(1)
|
|
1
|
|
|
(8)
|
|
|
—
|
|
Net income
|
|
437
|
|
|
616
|
|
|
951
|
|
Net income
attributable to non-controlling interests
|
|
(7)
|
|
|
(4)
|
|
|
(12)
|
|
Net income
attributable to Amcor plc
|
|
430
|
|
|
612
|
|
|
939
|
|
USD:EUR FX
rate
|
|
0.8767
|
|
|
0.9045
|
|
|
0.8385
|
|
|
|
|
|
|
|
|
Basic earnings per
share attributable to Amcor plc
|
|
0.364
|
|
|
0.382
|
|
|
0.604
|
|
Diluted earnings per
share attributable to Amcor plc
|
|
0.363
|
|
|
0.382
|
|
|
0.602
|
|
Weighted average
number of shares outstanding – Basic
|
|
1,180
|
|
|
1,600
|
|
|
1,551
|
|
Weighted average
number of shares outstanding - Diluted
|
|
1,184
|
|
|
1,602
|
|
|
1,556
|
|
|
(1) Represents 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)
|
|
|
|
Twelve Months
Ended June 30,
|
($
million)
|
|
2019
|
|
2020
|
|
2021
|
Net income
|
|
437
|
|
|
616
|
|
|
951
|
|
Depreciation,
amortization and impairment
|
|
453
|
|
|
652
|
|
|
574
|
|
Changes in operating
assets and liabilities
|
|
6
|
|
|
139
|
|
|
(47)
|
|
Other non-cash
items
|
|
(120)
|
|
|
(23)
|
|
|
(17)
|
|
Net cash provided by
operating activities
|
|
776
|
|
|
1,384
|
|
|
1,461
|
|
Purchase of property,
plant and equipment and other intangible assets
|
|
(332)
|
|
|
(400)
|
|
|
(468)
|
|
Proceeds from sales
of property, plant and equipment and other intangible
assets
|
|
85
|
|
|
13
|
|
|
26
|
|
Proceeds from
divestitures
|
|
216
|
|
|
425
|
|
|
214
|
|
Net debt (repayments)
proceeds
|
|
(58)
|
|
|
126
|
|
|
(98)
|
|
Dividends
paid
|
|
(680)
|
|
|
(761)
|
|
|
(742)
|
|
Share
buy-back/cancellations
|
|
—
|
|
|
(537)
|
|
|
(351)
|
|
Other, including
effects of exchange rate on cash and cash equivalents
|
|
(26)
|
|
|
(109)
|
|
|
65
|
|
Net (decrease)
increase in cash and cash equivalents
|
|
(19)
|
|
|
141
|
|
|
107
|
|
Cash and cash
equivalents at the beginning of the period
|
|
621
|
|
|
602
|
|
|
743
|
|
Cash and cash
equivalents at the end of the period
|
|
602
|
|
|
743
|
|
|
850
|
|
U.S. GAAP
Condensed Consolidated Balance Sheets (Unaudited)
|
|
($
million)
|
|
June 30,
2020
|
|
June 30,
2021
|
Cash and cash
equivalents
|
|
743
|
|
|
850
|
|
Trade receivables,
net
|
|
1,616
|
|
|
1,864
|
|
Inventories,
net
|
|
1,832
|
|
|
1,991
|
|
Property, plant and
equipment, net
|
|
3,615
|
|
|
3,761
|
|
Goodwill and other
intangible assets, net
|
|
7,333
|
|
|
7,254
|
|
Other
assets
|
|
1,303
|
|
|
1,468
|
|
Total
assets
|
|
16,442
|
|
|
17,188
|
|
Trade
payables
|
|
2,171
|
|
|
2,574
|
|
Short-term debt and
current portion of long-term debt
|
|
206
|
|
|
103
|
|
Long-term debt, less
current portion
|
|
6,028
|
|
|
6,186
|
|
Accruals and other
liabilities
|
|
3,350
|
|
|
3,504
|
|
Shareholders
equity
|
|
4,687
|
|
|
4,821
|
|
Total liabilities and
shareholders equity
|
|
16,442
|
|
|
17,188
|
|
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)
|
|
|
|
|
Twelve Months
Ended June 30, 2020
|
|
Twelve Months
Ended June 30, 2021
|
($
million)
|
|
EBITDA
|
|
EBIT
|
|
Net
Income
|
|
EPS
(Diluted
US
cents)
|
|
EBITDA
|
|
EBIT
|
|
Net
Income
|
|
EPS
(Diluted
US
cents)
|
Net income
attributable to Amcor
|
|
612
|
|
|
612
|
|
|
612
|
|
|
38.2
|
|
|
939
|
|
|
939
|
|
|
939
|
|
|
60.2
|
|
Net income
attributable to non-controlling interests
|
|
4
|
|
|
4
|
|
|
|
|
|
|
12
|
|
|
12
|
|
|
|
|
|
Loss from
discontinued operations
|
|
8
|
|
|
8
|
|
|
8
|
|
|
0.5
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Tax
expense
|
|
187
|
|
|
187
|
|
|
|
|
|
|
261
|
|
|
261
|
|
|
|
|
|
Interest expense,
net
|
|
185
|
|
|
185
|
|
|
|
|
|
|
139
|
|
|
139
|
|
|
|
|
|
Depreciation and
amortization
|
|
607
|
|
|
|
|
|
|
|
|
572
|
|
|
|
|
|
|
|
EBITDA, EBIT, Net
income and EPS
|
|
1,603
|
|
|
996
|
|
|
620
|
|
|
38.7
|
|
|
1,923
|
|
|
1,351
|
|
|
939
|
|
|
60.2
|
|
Material
restructuring and related costs(1)
|
|
106
|
|
|
106
|
|
|
102
|
|
|
6.3
|
|
|
88
|
|
|
88
|
|
|
88
|
|
|
5.7
|
|
Impairment in equity
method investments
|
|
26
|
|
|
26
|
|
|
26
|
|
|
1.6
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Net gain on
disposals(2)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(9)
|
|
|
(9)
|
|
|
(9)
|
|
|
(0.6)
|
|
Material transaction
and other costs(3)
|
|
145
|
|
|
145
|
|
|
145
|
|
|
9.2
|
|
|
7
|
|
|
7
|
|
|
7
|
|
|
0.5
|
|
Material impact of
hyperinflation
|
|
28
|
|
|
28
|
|
|
28
|
|
|
1.7
|
|
|
19
|
|
|
19
|
|
|
19
|
|
|
1.2
|
|
Pension
settlements
|
|
5
|
|
|
5
|
|
|
5
|
|
|
0.3
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Amortization of
acquired intangibles(4)
|
|
|
|
191
|
|
|
191
|
|
|
12.0
|
|
|
|
|
165
|
|
|
165
|
|
|
10.6
|
|
Tax effect of above
items
|
|
|
|
|
|
(89)
|
|
|
(5.6)
|
|
|
|
|
|
|
(51)
|
|
|
(3.2)
|
|
Adjusted EBITDA,
EBIT, Net income and EPS
|
|
1,913
|
|
|
1,497
|
|
|
1,028
|
|
|
64.2
|
|
|
2,028
|
|
|
1,621
|
|
|
1,158
|
|
|
74.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
adjusted growth to comparable constant currency
growth
|
|
|
|
|
|
|
|
|
% growth -
Adjusted EBITDA, EBIT, Net income and EPS
|
|
6
|
|
|
8
|
|
|
13
|
|
|
16
|
|
% items affecting
comparability(5)
|
|
|
|
|
|
|
|
|
|
1
|
|
|
1
|
|
|
1
|
|
|
1
|
|
% currency
impact
|
|
|
|
|
|
|
|
|
|
(1)
|
|
|
(1)
|
|
|
(1)
|
|
|
(1)
|
|
% comparable
constant currency growth
|
|
|
|
|
|
|
|
|
|
6
|
|
|
8
|
|
|
13
|
|
|
16
|
|
|
(1) The twelve months
ended June 30, 2021 includes a $51 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 twelve months ended June
30, 2021 includes a $19 million benefit related to Brazil
indirect taxes. The twelve months ended June 30, 2020 includes $58
million of acquisition related inventory fair value step-up
costs.
|
(4) The twelve months
ended June 30, 2020 includes $26 million of sales backlog
amortization related to the Bemis acquisition.
|
(5) Reflects the
impact of disposed businesses.
|
Reconciliation of
adjusted EBIT by reporting segment
|
|
|
|
|
|
|
|
Twelve Months
Ended June 30, 2020
|
|
Twelve Months
Ended June 30, 2021
|
($
million)
|
|
Flexibles
|
|
Rigid
Packaging
|
|
Other(1)
|
|
Total
|
|
Flexibles
|
|
Rigid
Packaging
|
|
Other(1)
|
|
Total
|
Net income
attributable to Amcor
|
|
|
|
|
|
|
|
612
|
|
|
|
|
|
|
|
|
939
|
|
Net income
attributable to non-
controlling interests
|
|
|
|
|
|
|
|
4
|
|
|
|
|
|
|
|
|
12
|
|
(Income) loss from
discontinued
operations
|
|
|
|
|
|
|
|
8
|
|
|
|
|
|
|
|
|
—
|
|
Tax
expense
|
|
|
|
|
|
|
|
187
|
|
|
|
|
|
|
|
|
261
|
|
Interest expense,
net
|
|
|
|
|
|
|
|
185
|
|
|
|
|
|
|
|
|
139
|
|
EBIT
|
|
970
|
|
|
210
|
|
|
(184)
|
|
|
996
|
|
|
1,142
|
|
|
253
|
|
|
(44)
|
|
|
1,351
|
|
Material
restructuring and related costs(2)
|
|
63
|
|
|
38
|
|
|
5
|
|
|
106
|
|
|
126
|
|
|
20
|
|
|
(58)
|
|
|
88
|
|
Impairment in equity
method
investments
|
|
—
|
|
|
—
|
|
|
26
|
|
|
26
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Net (gain) loss / on
disposals(3)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6
|
|
|
—
|
|
|
(15)
|
|
|
(9)
|
|
Material transaction
and other
costs(4)
|
|
77
|
|
|
3
|
|
|
65
|
|
|
145
|
|
|
(7)
|
|
|
2
|
|
|
12
|
|
|
7
|
|
Material impact of
hyperinflation
|
|
—
|
|
|
28
|
|
|
—
|
|
|
28
|
|
|
—
|
|
|
19
|
|
|
—
|
|
|
19
|
|
Pension
settlements
|
|
—
|
|
|
—
|
|
|
5
|
|
|
5
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Amortization of
acquired
intangibles(5)
|
|
186
|
|
|
5
|
|
|
—
|
|
|
191
|
|
|
160
|
|
|
5
|
|
|
—
|
|
|
165
|
|
Adjusted
EBIT(6)
|
|
1,296
|
|
|
284
|
|
|
(83)
|
|
|
1,497
|
|
|
1,427
|
|
|
299
|
|
|
(105)
|
|
|
1,621
|
|
Adjusted EBIT /
sales %
|
|
13.3
|
%
|
|
10.4
|
%
|
|
|
|
12.0
|
%
|
|
14.2
|
%
|
|
10.6
|
%
|
|
|
|
12.6
|
%
|
Reconciliation of
adjusted growth to comparable constant currency
growth
|
|
|
|
|
|
|
|
|
% growth -
Adjusted EBIT
|
|
|
|
|
|
|
|
|
|
10
|
|
|
6
|
|
|
|
|
8
|
|
% items affecting
comparability(7)
|
|
|
|
|
|
|
|
|
|
—
|
|
|
—
|
|
|
|
|
1
|
|
% currency
impact
|
|
|
|
|
|
|
|
|
|
(1)
|
|
|
2
|
|
|
|
|
(1)
|
|
% comparable
constant currency
growth
|
|
|
|
|
|
|
|
|
|
9
|
|
|
8
|
|
|
|
|
8
|
|
|
(1) Other includes
equity in income (loss) of affiliated companies, net of tax and
general corporate expenses.
|
(2) The twelve months
ended June 30, 2021 includes a $51 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.
|
(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 twelve months ended June
30, 2021 includes a $19 million benefit related to Brazil
indirect taxes. The twelve months ended June 30, 2020 includes $58
million of acquisition related inventory fair value step-up
costs.
|
(5) The twelve months
ended June 30, 2020 includes $26 million of sales backlog
amortization related to the Bemis acquisition.
|
(6) During the first
quarter of fiscal 2021, the Company reported that it revised the
presentation of the reportable segments adjusted EBIT to
include
an allocation of certain research and development and selling,
general and administrative expenses that management previously
reflected in Other.
Prior periods have been recast to conform to the new cost
allocation methodology.
|
(7) Reflects the
impact of disposed businesses.
|
Reconciliations of
adjusted Free Cash Flow
|
|
|
|
Twelve Months
Ended June 30,
|
($
million)
|
|
2020
|
|
2021
|
Net cash provided
from operating activities
|
|
1,384
|
|
|
1,461
|
|
Purchase of property,
plant and equipment and other intangible assets
|
|
(400)
|
|
|
(468)
|
|
Proceeds from sales
of property, plant and equipment and other intangible
assets
|
|
13
|
|
|
26
|
|
Operating cash flow
related to divested operations
|
|
60
|
|
|
—
|
|
Material transaction
and integration related costs
|
|
163
|
|
|
80
|
|
Adjusted Free Cash
Flow(1)
|
|
1,220
|
|
|
1,099
|
|
|
(1) Adjusted Free
Cash Flow excludes material transaction and integration related
costs because these cash flows are not considered to be
directly
related to ongoing operations.
|
|
|
Twelve Months
Ended June 30,
|
($
million)
|
|
2020
|
|
2021
|
Adjusted
EBITDA
|
|
1,913
|
|
|
2,028
|
|
Interest paid,
net
|
|
(187)
|
|
|
(131)
|
|
Income tax
paid(1)
|
|
(209)
|
|
|
(321)
|
|
Purchase of property,
plant and equipment and other intangible assets
|
|
(400)
|
|
|
(468)
|
|
Proceeds from sale of
property, plant and equipment and other intangible
assets
|
|
13
|
|
|
26
|
|
Movement in working
capital
|
|
213
|
|
|
29
|
|
Other
|
|
(123)
|
|
|
(64)
|
|
Adjusted Free Cash
Flow(2)
|
|
1,220
|
|
|
1,099
|
|
|
(1) The twelve months
ended June 30, 2020 excludes tax cash paid of $95 million related
to disposal proceeds from divestments which were required
by the European Commission and the U.S. Department of Justice at
the time of approving Amcor's acquisition of Bemis.
|
(2) Adjusted Free
Cash Flow excludes material transaction and integration related
costs because these cash flows are not considered to be
directly
related to ongoing operations.
|
Reconciliation of
net debt
|
|
($
million)
|
|
June 30,
2020
|
|
June 30,
2021
|
Cash and cash
equivalents
|
|
(743)
|
|
|
(850)
|
|
Short-term
debt
|
|
195
|
|
|
98
|
|
Current portion of
long-term debt
|
|
11
|
|
|
5
|
|
Long-term debt
excluding current portion of long-term debt
|
|
6,028
|
|
|
6,186
|
|
Net
debt
|
|
5,491
|
|
|
5,439
|
|
View original
content:https://www.prnewswire.com/news-releases/amcor-reports-record-full-year-earnings-and-strong-outlook-for-fiscal-2022-301356393.html
SOURCE Amcor