Highlights - Three Months Ended September 30, 2022
- Net sales of $3,712 million, up
9%;
- GAAP Net income of $232 million,
up 15%; GAAP earnings per share (EPS) of 15.5 cps, up 18%;
- Adjusted EPS of 18.1 cps, up 10% on a comparable constant
currency basis;
- Adjusted EBIT of $392 million, up
9% on a comparable constant currency basis;
- Quarterly dividend increased to 12.25
cents per share; and
- Fiscal 2023 outlook: Reaffirmed adjusted EPS growth on a
comparable constant currency basis of 3-8%. Updated adjusted
EPS on a reported basis to 77-81 cps to reflect further
strengthening of US dollar. Reaffirmed adjusted Free Cash Flow of
$1.0-$1.1
billion.
ZURICH, Nov. 1, 2022
/PRNewswire/ -- Amcor CEO Ron
Delia said: "Amcor delivered a strong first quarter
highlighted by solid operating leverage with 3% organic sales
growth driving a 10% increase in adjusted earnings per share on a
comparable constant currency basis. Both the Flexibles and Rigid
Packaging segments contributed to adjusted EBIT growth of 9% on a
comparable constant currency basis.
The result demonstrates the relative stability of our end market
exposures, our relentless focus on recovering higher raw material
costs and general inflation, and our proactive approach to driving
costs out of the business. Our consistent execution has enabled us
to generate strong organic earnings growth in a volatile and
challenging operating environment and gives us confidence in our
ability to achieve our adjusted EPS and free cash flow outlook for
the FY23 year.
We remain focused on executing against our strategy for long
term growth. Amcor consistently generates significant annual cash
flow, providing substantial capacity to reinvest for future growth
and to return cash to shareholders through an attractive and
growing dividend and regular share repurchases. We believe the
strength of our underlying business, proven execution capabilities
and capital allocation framework position us well to deliver strong
and consistent value for shareholders and supports our compelling
investment case."
|
Key Financials
|
|
|
|
|
|
Three Months Ended September
30,
|
|
|
GAAP results
|
|
|
|
|
|
2021 $ million
|
|
2022 $ million
|
|
|
Net sales
|
|
|
|
|
|
3,420
|
|
3,712
|
|
|
Net income attributable
to Amcor plc
|
|
|
|
|
|
202
|
|
232
|
|
|
EPS (diluted US
cents)
|
|
|
|
|
|
13.1
|
|
15.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comparable
constant
currency ∆%
|
|
|
|
|
Three Months Ended September
30,
|
|
Reported ∆%
|
|
|
|
Adjusted non-GAAP
results(1)
|
|
2021 $ million
|
|
2022 $ million
|
|
|
|
|
Net
sales(2)
|
|
3,420
|
|
3,712
|
|
9
|
|
3
|
|
|
EBITDA
|
|
486
|
|
494
|
|
2
|
|
8
|
|
|
EBIT
|
|
381
|
|
392
|
|
3
|
|
9
|
|
|
Net income
|
|
271
|
|
271
|
|
—
|
|
7
|
|
|
EPS (diluted US
cents)
|
|
17.7
|
|
18.1
|
|
3
|
|
10
|
|
|
Free Cash
Flow
|
|
(242)
|
|
(400)
|
|
|
|
|
|
|
|
|
(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 6% unfavorable currency impact
and a 12% favorable impact from the pass through of
higher raw material costs.
|
|
|
|
Note: All amounts
referenced throughout this document are in US dollars unless
otherwise indicated and numbers may not add up precisely to the
totals provided due to rounding.
|
Shareholder returns
Amcor generates significant annual cash flow, maintains strong
credit metrics and is committed to an investment grade credit
rating. This strong annual cash flow and balance sheet provide
substantial capacity to simultaneously reinvest in the business for
organic growth, pursue acquisitions and return cash to shareholders
through a compelling and growing dividend as well as regular share
repurchases.
Dividend
The Amcor Board of Directors today declared a quarterly cash
dividend of 12.25 cents per share
(compared with 12.00 cents per share
in the same quarter last year). The dividend will be paid in US
dollars to holders of Amcor's ordinary shares trading on the NYSE.
Holders of CDIs trading on the ASX will receive an unfranked
dividend of 19.44 Australian cents per share, which reflects
the quarterly dividend of 12.25 cents
per share converted at an AUD:USD average exchange rate
of 0.6300 over the five trading days ended October 25, 2022.
The ex-dividend date will be November 22,
2022, the record date will be November 23, 2022 and the payment date will be
December 13, 2022.
Share repurchases
The Company continues to expect that approximately $400 million of cash will be allocated towards
share repurchases in the 2023 fiscal year.
Financial results - Three Months Ended September 30, 2022
Segment information
|
Three Months Ended
September 30, 2021
|
Three Months Ended
September 30, 2022
|
Adjusted
non-GAAP
results
|
Net
sales
$
million
|
EBIT
$
million
|
EBIT /
Sales %
|
EBIT / Average
funds employed
%(1)
|
Net sales
$ million
|
EBIT
$
million
|
EBIT /
Sales %
|
EBIT / Average
funds employed
%(1)
|
Flexibles
|
2,634
|
339
|
12.9
|
|
2,779
|
353
|
12.7
|
|
Rigid
Packaging
|
786
|
62
|
7.9
|
|
933
|
66
|
7.0
|
|
Other(2)
|
—
|
(20)
|
|
|
—
|
(27)
|
|
|
Total Amcor
|
3,420
|
381
|
11.1
|
15.6
|
3,712
|
392
|
10.6
|
16.5
|
|
(1) Return on average
funds employed includes shareholders' equity and net debt,
calculated using a four quarter average and last twelve months
adjusted EBIT.
|
(2) Represents
corporate expenses.
|
Net sales for the Amcor Group of $3,712
million increased by 9% on a reported basis, which includes
price increases of approximately $400
million (representing 12% growth) related to the pass
through of higher raw material costs and an unfavorable impact of
6% related to movements in foreign currency exchange rates.
Items affecting comparability had no material impact on net
sales.
Net sales on a comparable constant currency basis were 3% higher
than the same period last year reflecting price/mix benefits.
Volumes were 0.6% lower than last year.
Adjusted EBIT margin of 10.6% was strong despite an adverse
impact of 120 basis points related to the increased sales dollars
associated with passing through higher raw material costs.
Flexibles
|
|
Three Months Ended
September 30,
|
|
Reported
∆%
|
|
Comparable
constant
currency
∆%
|
|
|
2021 $
million
|
2022 $
million
|
|
|
Net sales
|
|
2,634
|
2,779
|
|
6
|
|
3
|
Adjusted
EBIT
|
|
339
|
353
|
|
4
|
|
11
|
Adjusted EBIT / Sales
%
|
|
12.9
|
12.7
|
|
|
|
|
On a reported basis, net sales of $2,779
million were 6% higher than the same quarter last year,
which includes price increases of approximately $270 million (representing 10% growth) related to
the pass through of higher raw material costs and an unfavorable
impact of 8% related to movements in foreign exchange rates.
Items affecting comparability had no material impact on net
sales. Net sales on a comparable constant currency basis were
3% higher than the same quarter last year reflecting price/mix
benefits of approximately 4%, partly offset by approximately 1%
lower volumes.
In North America, net sales
grew in the low single digit range driven by price/mix benefits,
partly offset by lower volumes. Volumes were higher in healthcare,
cheese and home and personal care categories, offset by lower
volumes in categories including condiments, bakery, snacks and
confectionary.
In Europe, net sales grew in
the low single digit range driven by price/mix benefits, partly
offset by lower volumes. Higher volumes in pharmaceuticals,
capsules and liquid beverages were more than offset by lower
volumes in home and personal care, coffee, yogurt, snacks and
confectionary.
Net sales grew at low single digit rates across Asia with a balance of volume growth and
price/mix benefits. Growth was strong in India, Australia and in the pan Asian healthcare
business, partly offset by lower volumes in China where demand has been unfavorably
impacted by ongoing COVID related lockdowns. In Latin
America, net sales grew at mid single digit rates driven by
favorable price/mix benefits with volumes in line with the prior
year.
Adjusted EBIT of $353 million was
11% higher than the same quarter last year on a comparable constant
currency basis, reflecting overall net sales growth, ongoing
management of inflation and strong cost
performance.
Adjusted EBIT margin of 12.7% was strong despite an adverse
impact of 130 basis points related to the increased sales dollars
associated with passing through higher raw material costs.
Rigid
Packaging
|
|
Three Months Ended
September 30,
|
|
Reported
∆%
|
|
Comparable constant
currency ∆%
|
|
|
2021 $
million
|
2022 $
million
|
|
|
Net sales
|
|
786
|
933
|
|
19
|
|
3
|
Adjusted
EBIT
|
|
62
|
66
|
|
6
|
|
7
|
Adjusted EBIT / Sales
%
|
|
7.9
|
7.0
|
|
|
|
|
On a reported basis, net sales of $933
million were 19% higher than the same quarter last year,
which includes price increases of approximately $130 million (representing 17% growth) related to
the pass through of higher raw material costs and an unfavorable
impact of 1% related to movements in foreign exchange rates.
Net sales on a comparable constant currency basis were 3% higher
than the same quarter last year reflecting volume growth of
approximately 1% and a price/mix benefit of approximately 2%.
In North America, overall
beverage volumes were 3% lower than the same quarter last
year. Product mix was favorable with hot fill beverage
container volumes up 6% as a result of continued growth in key
categories including juice, ready to drink tea and sports drinks,
offset by lower combined preform and cold fill container volumes
compared to the prior period. Specialty container volumes were also
higher than the same quarter last year driven by growth in
healthcare, dairy and nutrition end markets.
In Latin America, volumes grew
at high single digit rates with higher volumes in Argentina, Mexico and Brazil.
Adjusted EBIT of $66 million was
7% higher than the same quarter last year on a comparable constant
currency basis, reflecting overall volume growth, inflation
recovery and solid operating and cost performance.
Adjusted EBIT margin of 7.0% includes an adverse impact of 120
basis points related to the increased sales dollars associated with
passing through higher raw material costs.
Net interest and income tax expense
Net interest expense of $50
million was $15 million higher
than the same quarter last year reflecting higher interest
rates. GAAP income tax expense for the three months ended
September 30, 2022 was $58 million compared with $63 million in the same period last year.
Excluding amounts related to non-GAAP adjustments, adjusted tax
expense for the three months ended September
30, 2022 was $68 million
compared with $73 million in the same
period last year. Adjusted tax expense represents an effective tax
rate of 20.0% in the current period (21.2% in the same period last
year).
Free Cash Flow
Adjusted free cash outflow was $400
million compared with an outflow of $242 million in the same quarter last year.
As expected, the increased outflow mainly reflects the impact of
higher inventory levels to mitigate supply chain constraints over
the last 12 months along with the timing of higher raw material
costs on working capital.
Net debt was $6,393 million at
September 30, 2022. Leverage,
measured as net debt divided by adjusted trailing twelve month
EBITDA, was 3.0 times, in line with Amcor's expectations at this
time of year given the seasonality of cash flows.
Fiscal 2023 guidance
For the twelve month period ending June
30, 2023, assuming current foreign exchange rates prevail
through the balance of the year, the Company expects:
- Adjusted EPS on a reported basis of 77 to 81 cents per share (lower than previous 80 to
84 cents per share due to further
strengthening of the US dollar) which includes:
- Growth of approximately 3-8% on a comparable
constant currency basis comprising approximately 5-10% growth from
the underlying business performance and a benefit of approximately
2% from share repurchases, partly offset by a negative
impact of approximately 4% related to higher estimated interest
expense, net of tax;
- A negative impact of approximately 2% related to the scale down
and planned sale of the Company's three plants in Russia; and
- A negative impact of approximately 5% (updated from a negative 2%
previously) related to a stronger US dollar.
- Adjusted Free Cash Flow of approximately $1.0-$1.1
billion.
- Approximately $400 million of
cash to be allocated towards share repurchases.
Amcor's guidance contemplates a range of factors which create a
degree of uncertainty and complexity when estimating future
financial results. Further information can be found under
'Cautionary Statement Regarding Forward-Looking Statements' in this
release.
Conference Call
Amcor is hosting a conference call with investors and analysts
to discuss these results on Tuesday November
1, 2022 at 5:30pm US Eastern
Daylight Time / Wednesday November 2,
2022 at 8:30am Australian
Eastern Daylight Time. Investors are invited to listen to a live
webcast of the conference call at our website, www.amcor.com, in
the "Investors" section.
Those wishing to access the call should use the following
numbers, with the Conference ID 8080870:
- US & Canada – 888 440 4149
(toll-free), 646 960 0661 (local)
- Australia – 1800 953 093 (toll
free), 02 9133 7103 (local)
- United Kingdom – 0800 358 0970
(toll free), 020 3433 3846 (local)
- 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 solutions for food, beverage, pharmaceutical, medical,
home and personal-care, and other products. Amcor works with
leading companies around the world to protect their products,
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 2022,
44,000 Amcor people generated $14.5
billion in annual sales from operations that span 220
locations in 43 countries. NYSE: AMCR; ASX: AMC
www.amcor.com I LinkedIn
I Facebook I Twitter I
YouTube
Contact Information
Investors
|
|
|
|
|
Tracey
Whitehead
|
|
Damien
Bird
|
|
Damon
Wright
|
Global Head of Investor
Relations
|
|
Vice President Investor
Relations
|
|
Vice President Investor
Relations
|
Amcor
|
|
Amcor
|
|
Amcor
|
+61 3 9226 9028 / +1
2244785790
|
|
+61 3 9226
9070
|
|
+1 224 313
7141
|
tracey.whitehead@amcor.com
|
|
damien.bird@amcor.com
|
|
damon.wright@amcor.com
|
|
|
|
|
|
Media - Australia
|
|
Media - Europe & North
America
|
|
|
James
Strong
|
|
Ernesto
Duran
|
|
|
Partner
|
|
Head of Global
Communications
|
|
|
Citadel-MAGNUS
|
|
Amcor
|
|
|
+61 448 881
174
|
|
+41 78 698 69
40
|
|
|
jstrong@citadelmagnus.com
|
|
ernesto.duran@amcor.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,"
"ambitions," "outlook," or "continue," the negative of these words,
other terms of similar meaning, or the use of future dates. Such
statements are based on the current expectations of the management
of Amcor and are qualified by the inherent risks and uncertainties
surrounding future expectations generally. Actual results could
differ materially from those currently anticipated due to a number
of risks and uncertainties. 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; challenging current and future global economic
conditions, including inflation and supply chain disruptions;
impact of operating internationally, including negative impacts
from the Russia-Ukraine conflict and the ability to sell
assets in Russia; price
fluctuations or shortages in the availability of raw materials,
energy, and other inputs; disruptions to production, supply, and
commercial risks, which may be exacerbated in times of economic
volatility; global health outbreaks, including COVID-19; an
inability to attract and retain key personnel; costs and
liabilities related to current and future environment, health, and
safety laws and regulations; labor disputes; risks related to
climate change; failures or disruptions in information technology
systems; cybersecurity risks; a significant increase in
indebtedness or a downgrade in the credit rating; foreign exchange
rate risk; rising interest rates; a significant write-down of
goodwill and/or other intangible assets; failure to maintain an
effective system of internal control over financial reporting;
inability of the Company's insurance policies to provide adequate
protections; challenges to or the loss of intellectual property
rights; 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 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, 2022 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 EBITDA
and EBITDA (calculated as earnings before interest and tax and
depreciation and amortization), adjusted EBIT and EBIT (calculated
as earnings before interest and tax), adjusted net income, adjusted
earnings per share, adjusted free cash flow and net debt. In
arriving at these non-GAAP measures, we exclude items that either
have a non-recurring impact on the income statement or which, in
the judgment of our management, are items that, either as a result
of their nature or size, could, were they not singled out,
potentially cause investors to extrapolate future performance from
an improper base. 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 those
acquisitions;
- 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;
- impacts from hyperinflation accounting; and
- impacts related to the Russia-Ukraine conflict.
Amcor also evaluates performance on a comparable constant
currency basis, which measures financial results assuming constant
foreign currency exchange rates used for translation based on the
average rates in effect for the comparable prior year period. In
order to compute comparable constant currency results, we multiply
or divide, as appropriate, current-year U.S. dollar results by the
current year average foreign exchange rates and then multiply or
divide, as appropriate, those amounts by the prior-year average
foreign exchange rates. We then adjust for
other items affecting comparability. While not all
inclusive, examples of items affecting comparability include the
difference between sales or earnings in the current period and the prior
period related to 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 November 23, 2022 to November 24, 2022, inclusive.
U.S. GAAP Condensed Consolidated Statements of Income
(Unaudited)
|
|
Three Months Ended
September 30,
|
($
million)
|
|
2021
|
|
2022
|
Net sales
|
|
3,420
|
|
3,712
|
Cost of
sales
|
|
(2,770)
|
|
(3,044)
|
Gross profit
|
|
650
|
|
668
|
Selling, general, and
administrative expenses
|
|
(313)
|
|
(302)
|
Research and
development expenses
|
|
(25)
|
|
(25)
|
Restructuring and
related expenses, net
|
|
(8)
|
|
(1)
|
Other
(expenses)/income, net
|
|
(8)
|
|
2
|
Operating
income
|
|
296
|
|
342
|
Interest expense,
net
|
|
(35)
|
|
(50)
|
Other non-operating
income, net
|
|
5
|
|
—
|
Income before income
taxes
|
|
266
|
|
292
|
Income tax
expense
|
|
(63)
|
|
(58)
|
Net income
|
|
203
|
|
234
|
Net income attributable
to non-controlling interests
|
|
(1)
|
|
(2)
|
Net income attributable
to Amcor plc
|
|
202
|
|
232
|
USD:EUR average FX
rate
|
|
0.8482
|
|
0.9933
|
|
|
|
|
|
Basic earnings per
share attributable to Amcor
|
|
0.131
|
|
0.156
|
Diluted earnings per
share attributable to Amcor
|
|
0.131
|
|
0.155
|
Weighted average number
of shares outstanding – Basic
|
|
1,530
|
|
1,474
|
Weighted average number
of shares outstanding – Diluted
|
|
1,534
|
|
1,486
|
U.S. GAAP Condensed Consolidated Statements of Cash Flows
(Unaudited)
|
|
Three Months Ended
September 30,
|
($
million)
|
|
2021
|
|
2022
|
Net income
|
|
203
|
|
234
|
Depreciation,
amortization, and impairment
|
|
177
|
|
151
|
Changes in operating
assets and liabilities
|
|
(562)
|
|
(700)
|
Other non-cash
items
|
|
70
|
|
55
|
Net cash used in
operating activities
|
|
(112)
|
|
(260)
|
Purchase of property,
plant, and equipment and other intangible assets
|
|
(145)
|
|
(152)
|
Proceeds from sales of
property, plant, and equipment and other intangible
assets
|
|
—
|
|
4
|
Business acquisitions
and investments in affiliated companies
|
|
—
|
|
(96)
|
Proceeds from
divestitures
|
|
—
|
|
4
|
Net debt
proceeds
|
|
363
|
|
613
|
Dividends
paid
|
|
(183)
|
|
(181)
|
Share
buy-back/cancellations
|
|
(64)
|
|
—
|
Treasury shares
purchases, net
|
|
(49)
|
|
(106)
|
Change in cash and cash
equivalents classified as held for sale
|
|
—
|
|
21
|
Effect of exchange
rates on cash and cash equivalents
|
|
(27)
|
|
(60)
|
Net decrease in cash
and cash equivalents
|
|
(217)
|
|
(213)
|
Cash and cash
equivalents at the beginning of the year
|
|
850
|
|
775
|
Cash and cash
equivalents at the end of the period
|
|
633
|
|
562
|
U.S. GAAP Condensed Consolidated Balance Sheets
(Unaudited)
($
million)
|
|
June 30,
2022
|
|
September 30,
2022
|
Cash and cash
equivalents
|
|
775
|
|
562
|
Trade receivables,
net
|
|
1,935
|
|
1,984
|
Inventories,
net
|
|
2,439
|
|
2,590
|
Property, plant, and
equipment, net
|
|
3,646
|
|
3,589
|
Goodwill and other
intangible assets, net
|
|
6,942
|
|
6,846
|
Other assets
|
|
1,689
|
|
1,721
|
Total assets
|
|
17,426
|
|
17,292
|
Trade
payables
|
|
3,073
|
|
2,839
|
Short-term debt and
current portion of long-term debt
|
|
150
|
|
76
|
Long-term debt, less
current portion
|
|
6,340
|
|
6,879
|
Accruals and other
liabilities
|
|
3,722
|
|
3,522
|
Shareholders'
equity
|
|
4,141
|
|
3,976
|
Total liabilities and
shareholders' equity
|
|
17,426
|
|
17,292
|
|
|
|
|
|
|
|
|
|
|
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)
|
|
Three Months Ended
September 30, 2021
|
|
Three Months Ended
September 30, 2022
|
($
million)
|
|
EBITDA
|
|
EBIT
|
|
Net
Income
|
|
EPS
(Diluted
US
cents)
|
|
EBITDA
|
|
EBIT
|
|
Net
Income
|
|
EPS
(Diluted
US
cents)(1)
|
Net income
attributable to Amcor
|
|
202
|
|
202
|
|
202
|
|
13.1
|
|
232
|
|
232
|
|
232
|
|
15.5
|
Net income attributable
to non-controlling
interests
|
|
1
|
|
1
|
|
|
|
|
|
2
|
|
2
|
|
|
|
|
Tax expense
|
|
63
|
|
63
|
|
|
|
|
|
58
|
|
58
|
|
|
|
|
Interest expense,
net
|
|
35
|
|
35
|
|
|
|
|
|
50
|
|
50
|
|
|
|
|
Depreciation and
amortization
|
|
146
|
|
|
|
|
|
|
|
142
|
|
|
|
|
|
|
EBITDA, EBIT, Net
income, and EPS
|
|
447
|
|
301
|
|
202
|
|
13.1
|
|
484
|
|
342
|
|
232
|
|
15.5
|
Material restructuring
programs
|
|
7
|
|
7
|
|
7
|
|
0.5
|
|
—
|
|
—
|
|
—
|
|
—
|
Material acquisition
and other costs(2)
|
|
2
|
|
2
|
|
2
|
|
0.2
|
|
(1)
|
|
(1)
|
|
(1)
|
|
(0.1)
|
Impact of
hyperinflation
|
|
2
|
|
2
|
|
2
|
|
0.1
|
|
8
|
|
8
|
|
8
|
|
0.5
|
Property and other
losses, net(3)
|
|
28
|
|
28
|
|
28
|
|
1.8
|
|
—
|
|
—
|
|
—
|
|
—
|
Amortization of
acquired intangibles
|
|
|
|
41
|
|
41
|
|
2.7
|
|
|
|
40
|
|
40
|
|
2.7
|
Russia-Ukraine conflict
impacts(4)
|
|
—
|
|
—
|
|
—
|
|
—
|
|
3
|
|
3
|
|
3
|
|
0.2
|
Tax effect of above
items
|
|
|
|
|
|
(11)
|
|
(0.7)
|
|
|
|
|
|
(11)
|
|
(0.7)
|
Adjusted EBITDA,
EBIT, Net income and EPS
|
|
486
|
|
381
|
|
271
|
|
17.7
|
|
494
|
|
392
|
|
271
|
|
18.1
|
Reconciliation of
adjusted growth to comparable constant currency
growth
|
|
|
|
|
|
|
|
|
|
|
% growth - Adjusted
EBITDA, EBIT, Net income, and
EPS
|
|
|
|
|
|
|
|
2
|
|
3
|
|
—
|
|
3
|
% items affecting
comparability(5)
|
|
|
|
|
|
|
|
|
|
1
|
|
1
|
|
1
|
|
1
|
% currency
impact
|
|
|
|
|
|
|
|
|
|
5
|
|
5
|
|
6
|
|
6
|
% comparable
constant currency growth
|
|
|
|
|
|
|
|
|
|
8
|
|
9
|
|
7
|
|
10
|
|
(1) Calculation of
diluted EPS excludes net income of $2 million attributable to
shares to be repurchased under forward contracts to meet share-
based incentive plans.
|
(2) Includes
costs/releases of accruals associated with the Bemis
transaction.
|
(3) Property and other
losses, net includes property and related business losses primarily
associated with the destruction of the Company's Durban,
South Africa, facility during general civil unrest in July 2021,
net of insurance recovery.
|
(4) Includes
incremental costs associated with the Russia-Ukraine
conflict.
|
(5) Reflects the impact
of acquired, disposed and ceased operations.
|
Reconciliation of adjusted EBIT by reporting segment
|
|
Three Months Ended
September 30, 2021
|
|
Three Months Ended
September 30, 2022
|
($
million)
|
|
Flexibles
|
|
Rigid
Packaging
|
|
Other
|
|
Total
|
|
Flexibles
|
|
Rigid
Packaging
|
|
Other
|
|
Total
|
Net income
attributable to Amcor
|
|
|
|
|
|
|
|
202
|
|
|
|
|
|
|
|
232
|
Net income attributable
to non-
controlling interests
|
|
|
|
|
|
|
|
1
|
|
|
|
|
|
|
|
2
|
Tax expense
|
|
|
|
|
|
|
|
63
|
|
|
|
|
|
|
|
58
|
Interest expense,
net
|
|
|
|
|
|
|
|
35
|
|
|
|
|
|
|
|
50
|
EBIT
|
|
264
|
|
59
|
|
(22)
|
|
301
|
|
311
|
|
57
|
|
(26)
|
|
342
|
Material restructuring
programs
|
|
7
|
|
—
|
|
—
|
|
7
|
|
—
|
|
—
|
|
—
|
|
—
|
Material acquisition
and other
costs(1)
|
|
—
|
|
—
|
|
2
|
|
2
|
|
—
|
|
—
|
|
(1)
|
|
(1)
|
Impact of
hyperinflation
|
|
—
|
|
2
|
|
—
|
|
2
|
|
—
|
|
8
|
|
—
|
|
8
|
Property and other
losses, net(2)
|
|
28
|
|
—
|
|
—
|
|
28
|
|
—
|
|
—
|
|
—
|
|
—
|
Amortization of
acquired intangibles
|
|
40
|
|
1
|
|
—
|
|
41
|
|
39
|
|
1
|
|
—
|
|
40
|
Russia-Ukraine conflict
impacts(3)
|
|
—
|
|
—
|
|
—
|
|
—
|
|
3
|
|
—
|
|
—
|
|
3
|
Adjusted
EBIT
|
|
339
|
|
62
|
|
(20)
|
|
381
|
|
353
|
|
66
|
|
(27)
|
|
392
|
Adjusted EBIT /
sales %
|
|
12.9 %
|
|
7.9 %
|
|
|
|
11.1 %
|
|
12.7 %
|
|
7.0 %
|
|
|
|
10.6 %
|
Reconciliation of
adjusted growth to comparable constant currency
growth
|
|
|
|
|
|
|
|
|
% growth - Adjusted
EBIT
|
|
|
|
|
|
|
|
|
|
4
|
|
6
|
|
|
|
3
|
% items affecting
comparability(4)
|
|
|
|
|
|
|
|
|
|
1
|
|
—
|
|
|
|
1
|
% currency
impact
|
|
|
|
|
|
|
|
|
|
6
|
|
1
|
|
|
|
5
|
% comparable
constant currency
|
|
|
|
|
|
|
|
|
|
11
|
|
7
|
|
|
|
9
|
|
(1) Includes
costs/releases of accruals associated with the Bemis
transaction.
|
(2) 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.
|
(3) Includes
incremental costs associated with the Russia-Ukraine
conflict.
|
(4) Reflects the impact
of acquired, disposed and ceased operations.
|
Reconciliations of Adjusted Free Cash Flow
|
|
Three Months Ended
September 30,
|
($
million)
|
|
2021
|
|
2022
|
Net cash used in
operating activities
|
|
(112)
|
|
(260)
|
Purchase of property,
plant, and equipment and other intangible assets
|
|
(145)
|
|
(152)
|
Proceeds from sales of
property, plant, and equipment and other intangible
assets
|
|
—
|
|
4
|
Russia-Ukraine conflict
impacts, material transaction and
integration related costs
|
|
15
|
|
8
|
Adjusted Free Cash
Flow(1)
|
|
(242)
|
|
(400)
|
|
(1) Adjusted Free Cash
Flow excludes Russia-Ukraine conflict impacts, material transaction
and integration related cash costs because these cash
flows are not considered to be directly related to ongoing
operations.
|
|
|
Three Months Ended
September 30,
|
($
million)
|
|
2021
|
|
2022
|
Adjusted
EBITDA
|
|
486
|
|
494
|
Interest
received/(paid), net
|
|
1
|
|
(34)
|
Income tax
paid
|
|
(55)
|
|
(35)
|
Purchase of property,
plant, and equipment and other intangible assets
|
|
(145)
|
|
(152)
|
Proceeds from sales of
property, plant, and equipment and other intangible
assets
|
|
—
|
|
4
|
Movement in working
capital
|
|
(512)
|
|
(666)
|
Other
|
|
(17)
|
|
(11)
|
Adjusted Free Cash
Flow(1)
|
|
(242)
|
|
(400)
|
|
(1) Adjusted Free Cash
Flow excludes Russia-Ukraine conflict impacts, 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,
2022
|
|
September 30,
2022
|
Cash and cash
equivalents
|
|
(775)
|
|
(562)
|
Short-term
debt
|
|
136
|
|
62
|
Current portion of
long-term debt
|
|
14
|
|
14
|
Long-term debt, less
current portion
|
|
6,340
|
|
6,879
|
Net
debt
|
|
5,715
|
|
6,393
|
View original
content:https://www.prnewswire.com/news-releases/amcor-reports-strong-first-quarter-fiscal-2023-result-301664283.html
SOURCE Amcor