ZURICH, Feb. 1, 2022 /PRNewswire/ --
Highlights - Six Months Ended December
31, 2021
- Net sales of $6,927 million, up
12%;
- GAAP Net Income of $427 million,
up 3%; GAAP earnings per share (EPS) of 27.9
cents per share, up 5%;
- Adjusted EPS of 35.8 cents per
share, up 9% on a comparable constant currency basis;
- Adjusted EBIT of $769 million, up
5% on a comparable constant currency basis;
- Increasing cash returns to shareholders: quarterly dividend of
12.0 cents per share; $600 million of share repurchases expected in
fiscal 2022, including an additional $200
million announced today; and
- Full year outlook unchanged: Adjusted EPS growth of 7-11% on a
comparable constant currency basis; Adjusted Free Cash
Flow of $1.1-$1.2 billion.
Solid first half
result and outlook for fiscal 2022 unchanged
|
Amcor CEO Ron Delia
said: "Amcor delivered a solid first half result as our teams
continue to successfully navigate a persistently challenging and
dynamic operating environment."
"Across the business
we continued to prioritize our customers and our scale and
operational agility enabled us to service demand in key segments,
driving growth and sales mix improvements. At the same time,
we implemented a broad range of actions to recover higher input
costs and manage through general inflation. As a result, sales grew
12% and we delivered 9 percent adjusted EPS growth year to date. We
remain confident in the outlook for fiscal year 2022, enabling us
to reaffirm guidance and increase cash returns to
shareholders."
"While the external
environment will continue to evolve, we remain focused on executing
our strategy for long-term value creation from the strong
foundation established over the last several years. The Amcor
investment case has never been stronger and we are increasing
investments in premium segments like healthcare and protein, in
emerging markets and in our innovation capabilities to drive growth
and margin expansion. We also continue to advance our
sustainability agenda and recently announced a commitment to
achieve net zero greenhouse gas emissions by 2050, raising our own
environmental aspirations and supporting our customers as they
strive to achieve their own goals."
|
Key Financials(1)
|
|
|
|
|
Six Months Ended
December 31,
|
GAAP
results
|
|
|
|
|
2020 $
million
|
|
2021 $
million
|
Net sales
|
|
|
|
|
6,200
|
|
6,927
|
Net income
|
|
|
|
|
417
|
|
427
|
EPS (diluted US
cents)
|
|
|
|
|
26.5
|
|
27.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comparable
constant
currency ∆%
|
|
Six Months Ended
December 31,
|
|
Reported
∆%
|
|
Adjusted non-GAAP
results
|
2020 $
million
|
|
2021 $
million
|
|
|
Net
sales(2)
|
6,200
|
|
6,927
|
|
12
|
|
2
|
EBITDA
|
948
|
|
976
|
|
3
|
|
4
|
EBIT
|
743
|
|
769
|
|
4
|
|
5
|
Net income
|
522
|
|
548
|
|
5
|
|
6
|
EPS (diluted US
cents)
|
33.3
|
|
35.8
|
|
8
|
|
9
|
Free Cash
Flow
|
276
|
|
105
|
|
(62)
|
|
|
|
(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 an 11% impact from the
pass through of raw material costs and a 1% unfavorable impact from
items affecting comparability. There was no material 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.
|
Shareholder returns
Amcor generates significant annual free cash flow, maintains
strong balance sheet 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 regularly repurchase shares while also
funding a compelling and growing dividend.
Share repurchases
Amcor repurchased 24.6 million shares (1.6% of outstanding
shares) during the six months ended December
31, 2021 for a total cost of $295
million.
In addition to $400 million
announced previously, the Company expects to allocate a further
$200 million of cash towards share
repurchases, bringing the total expected for the 2022 fiscal year
to approximately $600 million.
The additional $200 million of share
repurchases is not expected to benefit EPS growth until fiscal 2023
as there will be no material impact on the weighted average number
of shares outstanding in fiscal 2022.
Dividend
The Amcor Board of Directors today declared a quarterly cash
dividend of 12.00 cents per share
(compared with 11.75 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 16.85 Australian cents per share, which
reflects the quarterly dividend of 12.00
cents per share converted at an AUD:USD average exchange
rate of 0.7123 over the five trading days ended January 28, 2022.
The ex-dividend date will be February 22,
2022, the record date will be February 23, 2022 and the payment date will be
March 15, 2022.
Financial results - Six Months Ended December 31, 2021
Segment information
|
Six Months Ended
December 31, 2020
|
Six Months Ended
December 31, 2021
|
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
|
4,850
|
653
|
14%
|
|
5,347
|
691
|
13%
|
|
Rigid
Packaging
|
1,352
|
134
|
10%
|
|
1,580
|
117
|
7%
|
|
Other
|
(2)
|
(45)
|
|
|
—
|
(39)
|
|
|
Total
Amcor
|
6,200
|
743
|
12%
|
15%
|
6,927
|
769
|
11%
|
16%
|
|
(1) Average funds
employed includes shareholders' equity and net debt, calculated
using a four quarter average and Last Twelve Months adjusted
EBIT.
|
First half net sales for the Amcor Group increased by 12% on a
reported basis, which includes price increases of approximately
$650 million (representing 11%
growth) related to the pass through of higher raw material costs
and an unfavorable impact of 1% related to items affecting
comparability.
On a comparable constant currency basis, first half net
sales were 2% higher than the same period last year. Overall
first half volumes for the Amcor Group were 1% higher than the same
period last year and price/mix had a favorable impact on net sales
of 1%.
Adjusted EBIT for the first half of $769
million was 5% higher than last year on a comparable
constant currency basis.
Flexibles
|
|
|
|
|
|
|
|
Comparable
constant currency
∆%
|
|
Six Months Ended
December 31,
|
|
Reported
∆%
|
|
Adjusted non-GAAP
results
|
|
2020 $
million
|
|
2021 $
million
|
|
|
Net sales
|
|
4,850
|
|
5,347
|
|
10%
|
|
2%
|
Adjusted
EBIT
|
|
653
|
|
691
|
|
6%
|
|
7%
|
Adjusted EBIT / Sales
%
|
|
13.5
|
|
12.9
|
|
|
|
|
First half net sales for the Flexibles segment grew 10% on a
reported basis, which includes price increases of approximately
$480 million (representing 10%
growth) related to the pass through of higher raw material costs,
an unfavorable impact of 1% related to items affecting
comparability and an unfavorable currency impact of less than
1%.
On a comparable constant currency basis, first half net sales
were 2% higher than the prior period. Favorable price/mix of
approximately 2% reflects a continued focus on Amcor's long-term
strategy of managing mix to drive higher growth in priority high
value segments. Supply chain disruptions had a dampening
effect on growth in some categories and first half volumes were in
line with the first half last year, although volumes grew in the
second quarter.
In North America, first half
volume growth in the low single digit range was mainly driven by
strength in the medical, condiments, liquid beverage and
confectionary end markets. This was partly offset by lower cheese,
coffee and frozen food volumes.
In Europe, the business
delivered low single digit volume growth in the December
quarter. Through the first half, volumes were marginally
lower than the same period last year with growth in pet food,
medical, premium coffee and confectionary end markets offset by
lower snack food volumes.
Across the Asian emerging markets, the business delivered high
single digit volume growth and volumes in Latin America were lower than the prior period
with sequential improvement in the December
quarter.
Adjusted EBIT for the first half of $691
million was 7% higher than in the prior period on a
comparable constant currency basis reflecting growth in priority
high value segments and strong cost
performance.
Adjusted EBIT margins of 12.9% remained strong despite the time
lag between the impact of higher raw material costs and related
pricing actions.
Rigid
Packaging
|
|
|
|
|
|
|
|
Comparable
constant
currency ∆%
|
|
Six Months Ended
December 31,
|
|
Reported
∆%
|
|
Adjusted non-GAAP
results
|
|
2020 $
million
|
|
2021 $
million
|
|
|
Net sales
|
|
1,352
|
|
1,580
|
|
17%
|
|
4%
|
Adjusted
EBIT
|
|
134
|
|
117
|
|
(13)%
|
|
(13)%
|
Adjusted EBIT / Sales
%
|
|
9.9
|
|
7.4
|
|
|
|
|
First half net sales for the Rigid Packaging segment grew by 17%
on a reported basis, with 13% driven by price increases of
approximately $170 million related to
the pass through of higher raw material costs.
On a comparable constant currency basis, first half net sales
were 4% higher than the prior period. Overall volumes were 3%
higher than the prior period and price/mix had a 1% favorable
impact on net sales.
In North America, beverage
volumes were 3% higher than the prior year. Hot fill container
volumes were in line with a strong prior year when volumes grew
19%. Specialty container volumes were lower than the prior
year which benefited from strong volumes in the home and personal
care category.
In Latin America, volumes grew
at double digit rates with higher volumes in Argentina, Mexico and Colombia.
Adjusted EBIT for the first half of $117
million was lower than the prior year, with earnings
performance improving towards the end of the period. As
expected and highlighted in our first quarter result, the business
in North America has been
adversely impacted by industry wide supply chain disruptions and
shortages of key raw materials. Demand remained elevated in
the beverage segment while the business continued to operate at
full capacity and with low levels of inventory resulting in
inefficiencies and higher costs. Lower earnings in North America were partly offset by earnings
growth in Latin America.
We anticipate a return to earnings growth for the Rigid
Packaging segment in the June 2022
half year compared with the June 2021
half year.
Other
|
|
Six Months Ended
December 31,
|
Adjusted
EBIT
|
|
2020 $
million
|
|
2021 $
million
|
AMVIG (equity
accounted investment, net of tax)
|
|
3
|
|
—
|
Corporate
expenses
|
|
(48)
|
|
(39)
|
Total
Other
|
|
(45)
|
|
(39)
|
Net interest and income tax expense
Net interest expense for the six months ended December 31, 2021 was $69
million and was in line with the same period last
year. Tax expense for the six months ended December 31, 2021 (excluding amounts related to
non-GAAP adjustments) was $147
million and was in line with the same period last
year. Adjusted tax expense represents an effective tax rate
of 21.0% in the current period (21.5% in the same period last
year).
Free Cash Flow
First half adjusted free cash flow was $105 million and compares with $276 million last year. The reduction was
mainly driven by the timing impact of higher raw material costs on
working capital.
Net debt was $6,043 million at
December 31, 2021. Leverage,
measured as net debt divided by adjusted trailing twelve month
EBITDA, was 2.9 times, in line with Amcor's expectations given the
seasonality of cash flows.
Fiscal 2022 guidance unchanged
For the twelve month period ending June
30, 2022, the Company continues to expect:
- 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 $600 million
(previously $400 million) of cash to
be allocated towards share repurchases in fiscal 2022. The
additional $200 million of share
repurchases is not expected to benefit EPS growth until fiscal 2023
as there will be no material impact on the weighted average number
of shares outstanding in fiscal 2022.
Amcor's guidance contemplates a range of factors which create a
higher degree of uncertainty and additional 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 Tuesday February
1, 2022 at 5:30pm US Eastern
Standard Time / Wednesday February 2,
2022 at 9:30am 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 8080870:
- US & Canada – 888 440
4149
- Australia – 1800 953 093
- United Kingdom – 0800 358
0970
- Singapore – +65 3159 5133
(local number)
- Hong Kong – +852 3002 3410
(local number)
From all other countries, the call can be accessed by dialing +1
646 960 0661 (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 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. In
fiscal 2021, around 46,000 Amcor people generated $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
|
|
|
Global Head of
Investor Relations, Amcor
|
|
Vice President
Investor Relations, Amcor
|
|
|
+61 3 9226 9028 / +1
2244785790
|
|
+61 3 9226
9070
|
|
|
tracey.whitehead@amcor.com
|
|
damien.bird@amcor.com
|
|
|
|
|
|
|
|
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
|
|
|
|
|
|
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,"
"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; the possibility that the phase out of the London
Interbank Offered Rate ("LIBOR") causes the interest expense to
increase; 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;
litigation, including product liability claims; increasing scrutiny
and changing expectations with respect to Amcor Environmental,
Social and Governance policies resulting in increased costs;
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, 2021 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 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
combination;
- significant property impairments, net of insurance
recovery;
- payments or settlements related to legal claims; and
- impacts from hyperinflation 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 February 22, 2022 to February 23, 2022, inclusive.
U.S. GAAP Condensed Consolidated Statements of Income
(Unaudited)
|
|
Three Months Ended
December 31,
|
|
Six Months Ended
December 31,
|
($
million)
|
|
2020
|
|
2021
|
|
2020
|
|
2021
|
Net sales
|
|
3,103
|
|
3,507
|
|
6,200
|
|
6,927
|
Cost of
sales
|
|
(2,452)
|
|
(2,862)
|
|
(4,895)
|
|
(5,632)
|
Gross
profit
|
|
651
|
|
645
|
|
1,305
|
|
1,295
|
Selling, general, and
administrative expenses
|
|
(308)
|
|
(303)
|
|
(637)
|
|
(616)
|
Research and
development expenses
|
|
(23)
|
|
(23)
|
|
(49)
|
|
(48)
|
Restructuring and
related expenses, net
|
|
(23)
|
|
(10)
|
|
(46)
|
|
(18)
|
Other income,
net
|
|
10
|
|
13
|
|
10
|
|
5
|
Operating
income
|
|
307
|
|
322
|
|
583
|
|
618
|
Interest expense,
net
|
|
(33)
|
|
(34)
|
|
(70)
|
|
(69)
|
Other non-operating
income, net
|
|
3
|
|
2
|
|
6
|
|
7
|
Income before income
taxes and equity in income of affiliated companies
|
|
277
|
|
290
|
|
519
|
|
556
|
Income tax
expense
|
|
(55)
|
|
(61)
|
|
(116)
|
|
(124)
|
Equity in income of
affiliated companies, net of tax
|
|
—
|
|
—
|
|
19
|
|
—
|
Net income
|
|
222
|
|
229
|
|
422
|
|
432
|
Net income
attributable to non-controlling interests
|
|
(3)
|
|
(4)
|
|
(5)
|
|
(5)
|
Net income
attributable to Amcor plc
|
|
219
|
|
225
|
|
417
|
|
427
|
USD:EUR FX
rate
|
|
0.8558
|
|
0.8748
|
|
0.8473
|
|
0.8615
|
|
|
|
|
|
|
|
|
|
Basic earnings per
share attributable to Amcor
|
|
0.140
|
|
0.148
|
|
0.267
|
|
0.280
|
Diluted earnings per
share attributable to Amcor
|
|
0.139
|
|
0.148
|
|
0.265
|
|
0.279
|
Weighted average
number of shares outstanding – Basic
|
|
1,560
|
|
1,520
|
|
1,560
|
|
1,524
|
Weighted average
number of shares outstanding - Diluted
|
|
1,570
|
|
1,524
|
|
1,568
|
|
1,528
|
U.S. GAAP Condensed Consolidated Statements of Cash Flows
(Unaudited)
|
|
Six Months Ended
December 31,
|
($
million)
|
|
2020
|
|
2021
|
Net income
|
|
422
|
|
432
|
Depreciation,
amortization and impairment
|
|
287
|
|
332
|
Changes in operating
assets and liabilities
|
|
(253)
|
|
(525)
|
Other non-cash
items
|
|
(14)
|
|
84
|
Net cash provided by
operating activities
|
|
442
|
|
323
|
Purchase of property,
plant and equipment and other intangible assets
|
|
(218)
|
|
(255)
|
Proceeds from sales
of property, plant and equipment and other intangible
assets
|
|
4
|
|
6
|
Proceeds from
divestitures
|
|
138
|
|
—
|
Net debt
proceeds
|
|
40
|
|
471
|
Dividends
paid
|
|
(374)
|
|
(368)
|
Share
buy-back/cancellations
|
|
(75)
|
|
(295)
|
Share purchases, net
of proceeds received
|
|
9
|
|
(41)
|
Other, including
effects of exchange rate on cash and cash equivalents
|
|
46
|
|
(65)
|
Net increase
(decrease) in cash and cash equivalents
|
|
12
|
|
(224)
|
Cash and cash
equivalents at the beginning of the year
|
|
743
|
|
850
|
Cash and cash
equivalents at the end of the period
|
|
755
|
|
626
|
U.S. GAAP Condensed Consolidated Balance Sheets
(Unaudited)
($
million)
|
|
June 30,
2021
|
|
December 31,
2021
|
Cash and cash
equivalents
|
|
850
|
|
626
|
Trade receivables,
net
|
|
1,864
|
|
1,889
|
Inventories,
net
|
|
1,991
|
|
2,273
|
Property, plant and
equipment, net
|
|
3,761
|
|
3,695
|
Goodwill and other
intangible assets, net
|
|
7,254
|
|
7,119
|
Other
assets
|
|
1,468
|
|
1,536
|
Total
assets
|
|
17,188
|
|
17,138
|
Trade
payables
|
|
2,574
|
|
2,743
|
Short-term debt and
current portion of long-term debt
|
|
103
|
|
121
|
Long-term debt, less
current portion
|
|
6,186
|
|
6,548
|
Accruals and other
liabilities
|
|
3,504
|
|
3,207
|
Shareholders'
equity
|
|
4,821
|
|
4,519
|
Total liabilities and
shareholders' equity
|
|
17,188
|
|
17,138
|
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)
|
|
Six Months Ended
December 31, 2020
|
|
Six Months Ended
December 31, 2021
|
($
million)
|
|
EBITDA
|
|
EBIT
|
|
Net
Income
|
|
EPS
(Diluted
US
cents)
|
|
EBITDA
|
|
EBIT
|
|
Net
Income
|
|
EPS (Diluted US
cents)
|
Net income
attributable to Amcor
|
|
417
|
|
417
|
|
417
|
|
26.5
|
|
427
|
|
427
|
|
427
|
|
27.9
|
Net income
attributable to non-controlling interests
|
|
5
|
|
5
|
|
|
|
|
|
5
|
|
5
|
|
|
|
|
Tax
expense
|
|
116
|
|
116
|
|
|
|
|
|
124
|
|
124
|
|
|
|
|
Interest expense,
net
|
|
70
|
|
70
|
|
|
|
|
|
69
|
|
69
|
|
|
|
|
Depreciation and
amortization
|
|
287
|
|
|
|
|
|
|
|
289
|
|
|
|
|
|
|
EBITDA, EBIT, Net
income and EPS
|
|
895
|
|
608
|
|
417
|
|
26.5
|
|
914
|
|
625
|
|
427
|
|
27.9
|
Material
restructuring and related costs
|
|
39
|
|
39
|
|
39
|
|
2.5
|
|
17
|
|
17
|
|
17
|
|
1.1
|
Net (gain) / loss on
disposals(1)
|
|
(9)
|
|
(9)
|
|
(9)
|
|
(0.6)
|
|
9
|
|
9
|
|
9
|
|
0.6
|
Material transaction
and other costs(2)
|
|
13
|
|
13
|
|
13
|
|
0.8
|
|
2
|
|
2
|
|
2
|
|
0.1
|
Impact of
hyperinflation
|
|
11
|
|
11
|
|
11
|
|
0.7
|
|
4
|
|
4
|
|
4
|
|
0.3
|
Property and other
losses, net(3)
|
|
—
|
|
—
|
|
—
|
|
—
|
|
27
|
|
27
|
|
27
|
|
1.8
|
Pension
settlement
|
|
—
|
|
—
|
|
—
|
|
—
|
|
3
|
|
3
|
|
3
|
|
0.2
|
Amortization of
acquired intangibles
|
|
|
|
82
|
|
82
|
|
5.2
|
|
|
|
82
|
|
82
|
|
5.3
|
Tax effect of above
items
|
|
|
|
|
|
(29)
|
|
(1.8)
|
|
|
|
|
|
(23)
|
|
(1.5)
|
Adjusted EBITDA,
EBIT, Net income and EPS
|
|
948
|
|
743
|
|
522
|
|
33.3
|
|
976
|
|
769
|
|
548
|
|
35.8
|
Reconciliation of
adjusted growth to comparable constant currency
growth
|
|
|
|
|
|
|
|
|
% growth -
Adjusted EBITDA, EBIT, Net income, and EPS
|
|
3
|
|
4
|
|
5
|
|
8
|
% items affecting
comparability(4)
|
|
1
|
|
1
|
|
1
|
|
1
|
% currency
impact
|
|
—
|
|
—
|
|
—
|
|
—
|
% comparable
constant currency growth
|
|
4
|
|
5
|
|
6
|
|
9
|
|
(1) Net (gain)/loss
on disposals for the six months ended December 31, 2021 includes an
expense of $9 million, triggered by a commitment to sell non-core
assets. The six months ended December 31, 2020 includes the gain
realized upon the disposal of AMVIG and the loss upon disposal of
other non-core businesses not part of material restructuring
programs.
|
(2) Includes costs
associated with the Bemis acquisition.
|
(3) Property and
other losses, net includes property and related business losses
primarily associated with the destruction of the Company's Durban,
South Africa facility during general civil unrest in July 2021 net
of insurance recovery deemed probable for incurred
losses.
|
(4) Reflects the
impact of disposed and ceased operations.
|
Reconciliation of adjusted EBIT by reporting segment
|
|
Six Months Ended
December 31, 2020
|
|
Six Months Ended
December 31, 2021
|
($
million)
|
|
Flexibles
|
|
Rigid
Packaging
|
|
Other(1)
|
|
Total
|
|
Flexibles
|
|
Rigid
Packaging
|
|
Other(1)
|
|
Total
|
Net income
attributable to Amcor
|
|
|
|
|
|
|
|
417
|
|
|
|
|
|
|
|
427
|
Net income
attributable to non-controlling interests
|
|
|
|
|
|
|
|
5
|
|
|
|
|
|
|
|
5
|
Tax
expense
|
|
|
|
|
|
|
|
116
|
|
|
|
|
|
|
|
124
|
Interest expense,
net
|
|
|
|
|
|
|
|
70
|
|
|
|
|
|
|
|
69
|
EBIT
|
|
534
|
|
110
|
|
(36)
|
|
608
|
|
559
|
|
108
|
|
(42)
|
|
625
|
Material
restructuring and related costs
|
|
27
|
|
10
|
|
2
|
|
39
|
|
17
|
|
—
|
|
—
|
|
17
|
Net (gain) / loss on
disposals(2)
|
|
6
|
|
—
|
|
(15)
|
|
(9)
|
|
9
|
|
—
|
|
—
|
|
9
|
Material transaction
and other costs(3)
|
|
7
|
|
1
|
|
5
|
|
13
|
|
—
|
|
—
|
|
2
|
|
2
|
Impact of
hyperinflation
|
|
—
|
|
11
|
|
—
|
|
11
|
|
—
|
|
4
|
|
—
|
|
4
|
Property and other
losses, net(4)
|
|
—
|
|
—
|
|
—
|
|
—
|
|
27
|
|
—
|
|
—
|
|
27
|
Pension
settlement
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
2
|
|
1
|
|
3
|
Amortization of
acquired intangibles
|
|
79
|
|
3
|
|
—
|
|
82
|
|
79
|
|
3
|
|
—
|
|
82
|
Adjusted
EBIT
|
|
653
|
|
134
|
|
(45)
|
|
743
|
|
691
|
|
117
|
|
(39)
|
|
769
|
Adjusted EBIT /
sales %
|
|
13.5
%
|
|
9.9
%
|
|
|
|
12.0
%
|
|
12.9
%
|
|
7.4
%
|
|
|
|
11.1
%
|
Reconciliation of
adjusted growth to comparable constant currency
growth
|
|
|
|
|
|
|
|
|
% growth -
Adjusted EBIT
|
|
6
|
|
(13)
|
|
|
|
4
|
% items affecting
comparability(5)
|
|
1
|
|
—
|
|
|
|
1
|
% currency
impact
|
|
—
|
|
—
|
|
|
|
—
|
% comparable
constant currency
|
|
7
|
|
(13)
|
|
|
|
5
|
|
(1) Other includes
equity in income of affiliated companies, net of tax and general
corporate expenses.
|
(2) Net (gain)/loss
on disposals for the six months ended December 31, 2021 includes an
expense of $9 million, triggered by a commitment to sell non-core
assets. The six months ended December 31, 2020 includes the gain
realized upon the disposal of AMVIG and the loss upon disposal of
other non-core businesses not part of material restructuring
programs.
|
(3) Includes costs
associated with the Bemis acquisition.
|
(4) Property and
other losses, net includes property and related business losses
primarily associated with the destruction of the Company's Durban,
South Africa, facility during general civil unrest in July 2021 net
of insurance recovery deemed probable for incurred
losses.
|
(5) Reflects the
impact of disposed and ceased operations.
|
Reconciliations of adjusted Free Cash Flow
|
Six Months Ended
December 31,
|
($
million)
|
2020
|
|
2021
|
Net cash provided by
operating activities
|
442
|
|
323
|
Purchase of property,
plant, and equipment and other intangible assets
|
(218)
|
|
(255)
|
Proceeds from sales
of property, plant, and equipment and other intangible
assets
|
4
|
|
6
|
Material transaction
and integration related costs
|
48
|
|
31
|
Adjusted Free Cash
Flow(1)
|
276
|
|
105
|
|
(1) Adjusted Free
Cash Flow excludes material transaction and integration related
cash costs because these cash flows are not considered to be
directly related to ongoing operations.
|
|
|
|
Six Months Ended
December 31,
|
($
million)
|
2020
|
|
2021
|
Adjusted
EBITDA
|
948
|
|
976
|
Interest
(paid)/received, net
|
(65)
|
|
(47)
|
Income tax
paid
|
(168)
|
|
(110)
|
Purchase of property,
plant and equipment and other intangible assets
|
(218)
|
|
(255)
|
Proceeds from sales
of property, plant and equipment and other intangible
assets
|
4
|
|
6
|
Movement in working
capital
|
(209)
|
|
(440)
|
Other
|
(16)
|
|
(25)
|
Adjusted Free Cash
Flow(1)
|
276
|
|
105
|
|
(1) Adjusted Free
Cash Flow excludes material transaction and integration related
cash costs because these cash flows are not considered to be
directly related to ongoing operations.
|
|
|
Reconciliation of net debt
($
million)
|
June 30,
2021
|
|
December 31,
2021
|
Cash and cash
equivalents
|
(850)
|
|
(626)
|
Short-term
debt
|
98
|
|
115
|
Current portion of
long-term debt
|
5
|
|
6
|
Long-term debt
excluding current portion of long-term debt
|
6,186
|
|
6,548
|
Net
debt
|
5,439
|
|
6,043
|
View original
content:https://www.prnewswire.com/news-releases/amcor-reports-first-half-results-and-reaffirms-fiscal-2022-outlook-301473161.html
SOURCE Amcor