March 2023
quarter:
GAAP EPS of 11.9 cps; Adjusted EPS of
17.5 cps
Highlights - Nine Months Ended March
31, 2023
- Net sales of $11,021 million, up
4%;
- GAAP Net income of $868 million,
up 25%; GAAP diluted earnings per share (EPS) of 58.1 cps, up
27%;
- Adjusted EPS of 54.1 cps, up 4% on a comparable constant
currency basis;
- Adjusted EBIT of $1,173 million,
up 4% on a comparable constant currency basis;
- Strong cash returns to shareholders: quarterly dividend of
12.25 cents per share and
$200 million of share repurchases
year-to-date; and
- Fiscal 2023 outlook: Adjusted EPS and Free Cash Flow ranges
updated to 72-74 cps and $800-900
million, respectively.
ZURICH, May 2, 2023
/PRNewswire/ --
Amcor CEO Ron Delia
said: "Through the first nine months of fiscal 2023, Amcor has
delivered 4% higher adjusted earnings in comparable constant
currency terms and returned approximately $750 million of cash to
shareholders.
We were cautious on
market dynamics entering the third quarter and continued to take
decisive price and cost actions. These efforts helped offset
continued softness and increased volatility in the demand
environment leading to a modest 2.5% decline in adjusted EBIT for
the third quarter.
We are confident in the
strength of our underlying business, customer value proposition and
execution capabilities. Our expectation that current market
conditions will persist in the near-term means we are also laser
focused on continued initiatives to recover inflation, drive cost
productivity and advance previously announced structural cost
reductions. We have adjusted our fiscal 2023 outlook to reflect the
challenging operating environment and the actions we are taking
give us confidence that earnings growth will build as we progress
through fiscal 2024.
We remain focused on
executing our strategy for long term value creation, which includes
reinvesting in the business for organic growth, pursuing
acquisitions and/or regular share repurchases and returning cash to
shareholders through a compelling and growing dividend."
|
Key
Financials
|
|
|
|
|
|
Nine Months Ended
March 31,
|
GAAP
results
|
|
|
|
|
|
2022 $
million
|
|
2023 $
million
|
Net sales
|
|
|
|
|
|
10,635
|
|
11,021
|
Net income attributable
to Amcor plc
|
|
|
|
|
|
696
|
|
868
|
EPS (diluted US
cents)
|
|
|
|
|
|
45.6
|
|
58.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comparable constant
currency ∆%
|
|
|
Nine Months Ended
March 31,
|
|
Reported
∆%
|
|
Adjusted non-GAAP
results(1)
|
|
2022 $
million
|
|
2023 $
million
|
|
|
Net sales
|
|
10,635
|
|
11,021
|
|
4
|
|
2
|
EBITDA
|
|
1,507
|
|
1,478
|
|
(2)
|
|
4
|
EBIT
|
|
1,196
|
|
1,173
|
|
(2)
|
|
4
|
Net income
|
|
857
|
|
808
|
|
(6)
|
|
1
|
EPS (diluted US
cents)
|
|
56.2
|
|
54.1
|
|
(4)
|
|
4
|
Free Cash
Flow
|
|
263
|
|
14
|
|
|
|
|
|
(1) Adjusted non-GAAP
results exclude items which are not considered representative of
ongoing operations. Comparable constant currency ∆% excludes the
translation 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.
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. The Company's strong annual cash flow and balance
sheet provide substantial capacity to 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.
During the nine months ended March 31,
2023, the Company returned approximately $745 million to shareholders through cash
dividends and 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 18.43 Australian cents per share, which reflects the
quarterly dividend of 12.25 cents per
share converted at an AUD:USD average exchange rate of 0.6646
over the five trading days ended April 28,
2023.
The ex-dividend date will be May 23,
2023, the record date will be May 24,
2023 and the payment date will be June 20, 2023.
Share repurchases
Amcor repurchased approximately 18 million shares during the
nine months ended March 31, 2023 for
a total cost of approximately $200
million.
As previously announced, the Company expects up to $500 million in cash will be allocated to share
repurchases in fiscal 2023.
Financial results - Nine Months Ended March 31, 2023
Segment information
|
Nine Months Ended
March 31, 2022
|
Nine Months Ended
March 31, 2023
|
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
|
8,184
|
1,069
|
13.1 %
|
|
8,378
|
1,043
|
12.4 %
|
|
Rigid
Packaging
|
2,451
|
194
|
7.9 %
|
|
2,643
|
192
|
7.3 %
|
|
Other(2)
|
—
|
(67)
|
|
|
—
|
(62)
|
|
|
Total Amcor
|
10,635
|
1,196
|
11.2 %
|
15.8
|
11,021
|
1,173
|
10.6 %
|
16.2
|
|
(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.
|
Nine months ended March 31,
2023:
Net sales of $11,021 million
increased by 4% on a reported basis, which includes an unfavorable
impact of 4% related to movements in foreign exchange rates, an
unfavorable impact of 1% related to items affecting comparability
and price increases of approximately $750
million (representing 7% growth) related to the pass through
of higher raw material costs.
Net sales on a comparable constant currency basis were 2% higher
than the same period last year reflecting price/mix benefits of
approximately 4%. Volumes were approximately 2% lower than
last year.
GAAP Net Income was $868 million
and includes a $215 million gain on
the sale of the business in Russia. Adjusted EBIT of $1,173 million was 4% higher than last year on a
comparable constant currency basis. Adjusted EBIT margin of
10.6% includes an adverse impact of approximately 80 basis points
related to the increased sales dollars associated with passing
through higher raw material costs.
March 2023 quarter:
Net sales of $3,667 million were
1% lower than last year on a reported basis, which includes an
unfavorable impact of 2% related to movements in foreign currency
exchange rates, an unfavorable impact of 2% related to items
affecting comparability and price increases of approximately
$80 million (representing 2% growth)
related to the pass through of higher raw material costs.
Net sales on a comparable constant currency basis were 1% higher
than the same quarter last year reflecting price/mix benefits of
approximately 4%. Volumes were approximately 3% lower than in
the third quarter last year.
GAAP Net Income was $177
million. Adjusted EBIT of $382
million was 2.5% lower than the same quarter last year on a
comparable constant currency basis.
Flexibles segment
result
|
|
Nine Months Ended
March 31,
|
|
Reported
∆%
|
|
Comparable constant
currency ∆%
|
|
|
2022 $
million
|
2023 $
million
|
|
|
Net sales
|
|
8,184
|
8,378
|
|
2
|
|
3
|
Adjusted
EBIT
|
|
1,069
|
1,043
|
|
(2)
|
|
5
|
Adjusted EBIT / Sales
%
|
|
13.1
|
12.4
|
|
|
|
|
Nine months ended March 31,
2023:
On a reported basis, net sales of $8,378
million were 2% higher than the same period last year, and
includes an unfavorable impact of 5% related to movements in
foreign exchange rates, an unfavorable impact of approximately 1%
related to items affecting comparability and price increases of
approximately $490 million
(representing 6% growth) related to the pass through of higher raw
material costs. Net sales on a comparable constant currency
basis were 3% higher than the same period last year reflecting
price/mix benefits of approximately 5%, partly offset by
approximately 2% 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 the
healthcare, pet care and home and personal care categories, and
this was more than offset by lower volumes in categories including
condiments, meat and ready meals.
In Europe, net sales grew in
the mid single digit range driven by price/mix benefits, partly
offset by lower volumes. Volumes were lower in coffee, home
and personal care, yogurt, confectionary and medical. This was
partly offset by higher volumes in pet care and
pharmaceuticals.
Net sales were broadly in line with the prior year across the
Asia Pacific region with price/mix
benefits offset by lower volumes. Volumes were lower in
China where demand was unfavorably
impacted by COVID related lockdowns. Sales growth has
remained strong in India,
Australia and in the pan Asian
healthcare and meat end markets. In Latin America, net sales
grew at low single digit rates driven by favorable price/mix
benefits, partly offset by lower
volumes.
Adjusted EBIT of $1,043 million
was 5% higher than the same period last year on a comparable
constant currency basis, reflecting favorable operating cost
performance partly offset by the impact of lower volumes and
unfavorable mix trends.
Adjusted EBIT margin of 12.4% includes an adverse impact of
approximately 80 basis points related to the increased sales
dollars associated with passing through higher raw material
costs.
March 2023 quarter:
On a reported basis, net sales of $2,787
million were 2% lower than the same quarter last year, and
includes an unfavorable impact of 2% related to movements in
foreign exchange rates, an unfavorable impact of 3% related to
items affecting comparability and price increases of approximately
$35 million (representing 1% growth)
related to the pass through of higher raw material costs. Net
sales on a comparable constant currency basis were 2% higher than
the same quarter last year reflecting price/mix benefits of
approximately 5%, partly offset by approximately 3% lower
volumes.
In Europe, volumes declined in
the mid single digit range and in North
America, volumes declined in the low single digit
range. In both businesses this reflects sequentially softer
consumer demand along with customer destocking.
Adjusted EBIT of $337 million was
1% lower than the same quarter last year on a comparable constant
currency basis, reflecting lower volumes and increased volatility,
unfavorable mix trends and ongoing cost inflation. These
unfavorable impacts were offset by benefits from cost reduction
initiatives.
Rigid Packaging
segment result
|
|
Nine Months Ended
March 31,
|
|
Reported
∆%
|
|
Comparable constant
currency ∆%
|
|
|
2022 $
million
|
2023 $
million
|
|
|
Net sales
|
|
2,451
|
2,643
|
|
8
|
|
(2)
|
Adjusted
EBIT
|
|
194
|
192
|
|
(1)
|
|
—
|
Adjusted EBIT / Sales
%
|
|
7.9
|
7.3
|
|
|
|
|
Nine months ended March 31,
2023:
On a reported basis, net sales of $2,643
million were 8% higher than the same period last year, which
includes an unfavorable impact of 1% related to movements in
foreign exchange rates and price increases of approximately
$260 million (representing 11%
growth) related to the pass through of higher raw material
costs. Net sales on a comparable constant currency basis were
2% lower than the same period last year reflecting approximately 3%
lower volumes, partly offset by price/mix benefits of approximately
1%.
In North America, overall
beverage volumes were 5% lower than the same period last
year. Hot fill beverage container volumes were up 2% as a
result of continued growth in key categories, offset by lower
combined preform and cold fill container volumes compared to the
prior period. The specialty container business delivered
volume growth in the healthcare, dairy and nutrition categories.
Overall specialty container volumes were in line with last
year.
In Latin America, volumes
were 2% lower than last year with volume growth in
Argentina and Mexico offset by lower volumes primarily in
Colombia.
Adjusted EBIT of $192 million was
in line with the same period last year on a comparable constant
currency basis, reflecting lower volumes and unfavorable mix trends
offset by favorable operating cost performance.
Adjusted EBIT margin of 7.3% includes an adverse impact of
approximately 80 basis points related to the increased sales
dollars associated with passing through higher raw material
costs.
March 2023 quarter:
On a reported basis, net sales of $880
million were 1% higher than the same quarter last year,
which includes an unfavorable impact of 1% related to movements in
foreign exchange rates and price increases of approximately
$50 million (representing 5% growth)
related to the pass through of higher raw material costs. Net
sales on a comparable constant currency basis were 4% lower than
the same quarter last year reflecting lower volumes.
In North America, overall
beverage volumes in the March 2023
quarter were 6% lower than the same quarter last year as a result
of lower consumer demand and customer destocking more than
offsetting new business wins. March
2023 quarter hot fill beverage container volumes were 1%
higher than last year and outperformed the market. In Latin
America, the business continued to be unfavorably impacted by soft
demand across the region and volumes declined at mid single digit
rates.
Adjusted EBIT of $69 million was
9% lower than the same quarter last year on a comparable constant
currency basis reflecting lower volumes and increased volatility,
unfavorable mix trends and ongoing cost inflation. These
unfavorable impacts were partly offset by benefits from cost
reduction initiatives.
Net interest and income tax expense
For the nine months ended March 31,
2023, net interest expense of $189
million was $89 million higher
than the same period last year reflecting higher interest
rates. GAAP income tax expense was $125 million compared with $196 million in the same period last year.
Excluding amounts related to non-GAAP adjustments, adjusted tax
expense for the nine months ended March 31,
2023 was $170 million compared
with $232 million in the same period
last year. Adjusted tax expense represents an effective tax rate of
17.2% which is lower than 21.2% in the same period last year,
primarily due to differences in the mix of taxable income and
discrete items in both periods.
Adjusted Free Cash Flow
For the nine months ended March 31,
2023, adjusted Free cash flow was $14
million compared with $263
million in the same period last year. Compared with
last year, the variance reflects lower accounts payable balances
resulting from moderated purchasing activities due to inventory
reduction initiatives and lower sales volumes in fiscal 2023.
March 2023 quarter adjusted Free cash
flow of $76 million compares with
$158 million in the same quarter last
year.
Net debt was $6,449 million at
March 31, 2023. Leverage, measured as
net debt divided by adjusted trailing twelve month EBITDA, was 3.1
times.
Fiscal 2023 guidance - updated
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 72 to 74 cents per share (previously lower end of 77 to
81 cents per share). Updated
adjusted EPS expectations include:
-
- A comparable constant currency earnings decline of 1-4%.
This is comprised of:
-
- Earnings from the underlying business in line with last
year. This assumes the demand environment in the fourth
quarter will remain weak and volatile resulting in a mid single
digit decline in overall volumes compared with last year;
- a benefit of approximately 2% from share repurchases;
- a negative impact of approximately 4% related to higher
combined interest and tax expense.
- Sale of the Company's three plants in Russia on December 23,
2022 resulting in an unfavorable impact of approximately 3%;
and
- A stronger US dollar driving an unfavorable currency impact of
approximately 4%.
- Adjusted Free Cash Flow of approximately $800 million to $900
million (previously lower end of $1.0
billion to $1.1 billion) which
reflects updated working capital and cash earnings
expectations.
- Up to $500 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, and is provided in the context of greater than
usual volatility in demand. 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. 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 May 2,
2023 at 5.30pm US Eastern
Daylight Time / May 3, 2023 at
7.30am 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 519 630 (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 $15
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 Asia Pacific
|
|
Vice President Investor
Relations North America
|
Amcor
|
|
Amcor
|
|
Amcor
|
+61 3 9226
9028
|
|
+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; 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. Note
although amortization of acquired intangible assets is excluded
from non-GAAP adjusted financial measures, the revenue of the
acquired entities and all other expenses unless otherwise stated,
are reflected in our non-GAAP financial performance earnings
measures. 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;
- 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 May 23, 2023 to May 24,
2023, inclusive.
U.S. GAAP Condensed Consolidated Statements of Income
(Unaudited)
|
|
Three Months Ended
March 31,
|
Nine Months Ended
March 31,
|
($
million)
|
|
2022
|
|
2023
|
2022
|
2023
|
Net sales
|
|
3,708
|
|
3,667
|
10,635
|
11,021
|
Cost of
sales
|
|
(2,977)
|
|
(2,994)
|
(8,609)
|
(9,018)
|
Gross profit
|
|
731
|
|
673
|
2,026
|
2,003
|
Selling, general, and
administrative expenses
|
|
(326)
|
|
(317)
|
(942)
|
(917)
|
Research and
development expenses
|
|
(24)
|
|
(27)
|
(72)
|
(76)
|
Restructuring and other
related activities, net
|
|
(9)
|
|
(50)
|
(27)
|
162
|
Other
income/(expenses), net
|
|
(3)
|
|
3
|
2
|
11
|
Operating
income
|
|
369
|
|
282
|
987
|
1,183
|
Interest expense,
net
|
|
(31)
|
|
(71)
|
(100)
|
(189)
|
Other non-operating
income, net
|
|
5
|
|
2
|
12
|
5
|
Income before income
taxes
|
|
343
|
|
213
|
899
|
999
|
Income tax
expense
|
|
(72)
|
|
(34)
|
(196)
|
(125)
|
Net income
|
|
271
|
|
179
|
703
|
874
|
Net income attributable
to non-controlling interests
|
|
(2)
|
|
(2)
|
(7)
|
(6)
|
Net income attributable
to Amcor plc
|
|
269
|
|
177
|
696
|
868
|
USD:EUR average FX
rate
|
|
0.8915
|
|
0.9318
|
0.8713
|
0.9687
|
|
|
|
|
|
|
|
Basic earnings per
share attributable to Amcor
|
|
0.178
|
|
0.120
|
0.457
|
0.585
|
Diluted earnings per
share attributable to Amcor
|
|
0.178
|
|
0.119
|
0.456
|
0.581
|
Weighted average number
of shares outstanding – Basic
|
|
1,503
|
|
1,470
|
1,517
|
1,473
|
Weighted average number
of shares outstanding - Diluted
|
|
1,507
|
|
1,476
|
1,521
|
1,482
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. GAAP Condensed Consolidated Statements of Cash Flows
(Unaudited)
|
|
Nine Months Ended
March 31,
|
($
million)
|
|
2022
|
|
2023
|
Net income
|
|
703
|
|
874
|
Depreciation,
amortization and impairment
|
|
479
|
|
428
|
Net gain on disposal of
businesses
|
|
—
|
|
(219)
|
Changes in operating
assets and liabilities, excluding effect of acquisitions,
divestitures, and currency
|
|
(728)
|
|
(869)
|
Other non-cash
items
|
|
135
|
|
115
|
Net cash provided by
operating activities
|
|
589
|
|
329
|
Purchase of property,
plant and equipment and other intangible assets
|
|
(373)
|
|
(382)
|
Proceeds from sales of
property, plant and equipment and other intangible
assets
|
|
7
|
|
12
|
Business acquisitions
and Investments in affiliated companies, and other
|
|
(11)
|
|
(143)
|
(Payments)/proceeds
from divestitures
|
|
(1)
|
|
365
|
Net debt
proceeds
|
|
1,068
|
|
464
|
Dividends
paid
|
|
(550)
|
|
(545)
|
Share
buyback/cancellations
|
|
(423)
|
|
(200)
|
Treasury shares
purchases, net
|
|
(41)
|
|
(88)
|
Other, including effect
of exchange rate on cash and cash equivalents
|
|
(38)
|
|
(98)
|
Net increase/(decrease)
in cash and cash equivalents
|
|
227
|
|
(286)
|
Cash and cash
equivalents balance at beginning of the year
(1)
|
|
850
|
|
850
|
Cash and cash
equivalents balance at end of the period
|
|
1,077
|
|
564
|
(1) Cash and cash
equivalents at the beginning of the fiscal year 2023 include $75
million of cash and cash equivalents classified as held for
sale.
|
U.S. GAAP Condensed Consolidated Balance Sheets
(Unaudited)
($
million)
|
|
June 30,
2022
|
|
March 31,
2023
|
Cash and cash
equivalents
|
|
775
|
|
564
|
Trade receivables,
net
|
|
1,935
|
|
2,034
|
Inventories,
net
|
|
2,439
|
|
2,420
|
Property, plant, and
equipment, net
|
|
3,646
|
|
3,741
|
Goodwill and other
intangible assets, net
|
|
6,942
|
|
6,886
|
Assets held for sale,
net
|
|
192
|
|
—
|
Other assets
|
|
1,497
|
|
1,633
|
Total assets
|
|
17,426
|
|
17,278
|
Trade
payables
|
|
3,073
|
|
2,528
|
Short-term debt and
current portion of long-term debt
|
|
150
|
|
209
|
Long-term debt, less
current portion
|
|
6,340
|
|
6,804
|
Liabilities held for
sale
|
|
65
|
|
—
|
Accruals and other
liabilities
|
|
3,657
|
|
3,429
|
Shareholders'
equity
|
|
4,141
|
|
4,308
|
Total liabilities and
shareholders' equity
|
|
17,426
|
|
17,278
|
|
|
|
|
|
|
|
|
|
|
Components of Fiscal 2023 Net Sales growth
|
Three Months Ended
March 31, 2023
|
|
Nine Months Ended
March 31, 2023
|
($
million)
|
Flexibles
|
Rigid
Packaging
|
Total
|
|
Flexibles
|
Rigid
Packaging
|
Total
|
Net sales fiscal year
2023
|
2,787
|
880
|
3,667
|
|
8,378
|
2,643
|
11,021
|
Net sales fiscal year
2022
|
2,837
|
871
|
3,708
|
|
8,184
|
2,451
|
10,635
|
Reported Growth
%
|
(2)
|
1
|
(1)
|
|
2
|
8
|
4
|
FX %
|
(2)
|
(1)
|
(2)
|
|
(5)
|
(1)
|
(4)
|
Constant Currency
Growth %
|
—
|
2
|
1
|
|
7
|
9
|
8
|
RM Pass Through
%
|
1
|
5
|
2
|
|
6
|
11
|
7
|
Items affecting
comparability
|
(3)
|
—
|
(2)
|
|
(1)
|
—
|
(1)
|
Comparable Constant
Currency Growth %
|
2
|
(4)
|
1
|
|
3
|
(2)
|
2
|
Volume %
|
(3)
|
(4)
|
(3)
|
|
(2)
|
(3)
|
(2)
|
Price/Mix %
|
5
|
1
|
4
|
|
5
|
1
|
4
|
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
March 31, 2022
|
|
Three Months Ended
March 31, 2023
|
|
|
|
|
|
|
|
|
($
million)
|
|
EBITDA
|
|
EBIT
|
|
Net
Income
|
|
EPS
(Diluted
US
cents)
|
|
EBITDA
|
|
EBIT
|
|
Net
Income
|
|
EPS (Diluted US
cents)
|
|
|
|
|
|
|
|
|
Net income
attributable to Amcor
|
|
269
|
|
269
|
|
269
|
|
17.8
|
|
177
|
|
177
|
|
177
|
|
11.9
|
|
|
|
|
|
|
|
|
Net income attributable
to non-controlling interests
|
|
2
|
|
2
|
|
|
|
|
|
2
|
|
2
|
|
|
|
|
|
|
|
|
|
|
|
|
Tax expense
|
|
72
|
|
72
|
|
|
|
|
|
34
|
|
34
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense,
net
|
|
31
|
|
31
|
|
|
|
|
|
71
|
|
71
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
144
|
|
|
|
|
|
|
|
142
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA, EBIT, Net
income and EPS
|
|
518
|
|
374
|
|
269
|
|
17.8
|
|
426
|
|
284
|
|
177
|
|
11.9
|
|
|
|
|
|
|
|
|
2019 Bemis Integration
Plan
|
|
9
|
|
9
|
|
9
|
|
0.6
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|
|
|
|
|
|
|
Impact of
hyperinflation
|
|
6
|
|
6
|
|
6
|
|
0.4
|
|
6
|
|
6
|
|
6
|
|
0.4
|
|
|
|
|
|
|
|
|
Property and other
gains, net
|
|
(4)
|
|
(4)
|
|
(4)
|
|
(0.3)
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|
|
|
|
|
|
|
Russia-Ukraine conflict
impacts
|
|
—
|
|
—
|
|
—
|
|
—
|
|
48
|
|
48
|
|
48
|
|
3.3
|
|
|
|
|
|
|
|
|
Other
|
|
2
|
|
2
|
|
2
|
|
0.1
|
|
4
|
|
4
|
|
4
|
|
0.1
|
|
|
|
|
|
|
|
|
Amortization of
acquired intangibles
|
|
|
|
40
|
|
40
|
|
2.6
|
|
|
|
40
|
|
40
|
|
2.7
|
|
|
|
|
|
|
|
|
Tax effect of above
items
|
|
|
|
|
|
(13)
|
|
(0.8)
|
|
|
|
|
|
(15)
|
|
(0.9)
|
|
|
|
|
|
|
|
|
Adjusted EBITDA,
EBIT, Net income and EPS
|
|
531
|
|
427
|
|
309
|
|
20.4
|
|
484
|
|
382
|
|
260
|
|
17.5
|
|
|
|
|
|
|
|
|
Reconciliation of
adjusted growth to comparable constant currency
growth
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% growth - Adjusted
EBITDA, EBIT, Net income, and EPS
|
|
|
|
|
|
(9)
|
|
(11)
|
|
(16)
|
|
(14)
|
|
|
|
|
|
|
|
|
% items affecting
comparability
|
|
|
|
|
|
|
|
|
|
6
|
|
7
|
|
8
|
|
8
|
|
|
|
|
|
|
|
|
% currency
impact
|
|
|
|
|
|
|
|
|
|
1
|
|
1
|
|
1
|
|
1
|
|
|
|
|
|
|
|
|
% comparable
constant currency growth
|
|
|
|
|
|
|
|
|
|
(2)
|
|
(2.5)
|
|
(7)
|
|
(5)
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended
March 31, 2022
|
|
Nine Months Ended
March 31, 2023
|
($
million)
|
|
EBITDA
|
|
EBIT
|
|
Net
Income
|
|
EPS
(Diluted
US
cents)(1)
|
|
EBITDA
|
|
EBIT
|
|
Net
Income
|
|
EPS (Diluted US
cents)(1)
|
Net income
attributable to Amcor
|
|
696
|
|
696
|
|
696
|
|
45.6
|
|
868
|
|
868
|
|
868
|
|
58.1
|
Net income attributable
to non-controlling interests
|
|
7
|
|
7
|
|
|
|
|
|
6
|
|
6
|
|
|
|
|
Tax expense
|
|
196
|
|
196
|
|
|
|
|
|
125
|
|
125
|
|
|
|
|
Interest expense,
net
|
|
100
|
|
100
|
|
|
|
|
|
189
|
|
189
|
|
|
|
|
Depreciation and
amortization
|
|
433
|
|
|
|
|
|
|
|
425
|
|
|
|
|
|
|
EBITDA, EBIT, Net
income, and EPS
|
|
1,432
|
|
999
|
|
696
|
|
45.6
|
|
1,613
|
|
1,188
|
|
868
|
|
58.1
|
2019 Bemis Integration
Plan
|
|
26
|
|
26
|
|
26
|
|
1.7
|
|
—
|
|
—
|
|
—
|
|
—
|
Net loss on
disposals(2)
|
|
9
|
|
9
|
|
9
|
|
0.6
|
|
—
|
|
—
|
|
—
|
|
—
|
Impact of
hyperinflation
|
|
10
|
|
10
|
|
10
|
|
0.6
|
|
19
|
|
19
|
|
19
|
|
1.3
|
Property and other
losses, net(3)
|
|
23
|
|
23
|
|
23
|
|
1.5
|
|
—
|
|
—
|
|
—
|
|
—
|
Pension
settlements
|
|
3
|
|
3
|
|
3
|
|
0.3
|
|
—
|
|
—
|
|
—
|
|
—
|
Russia-Ukraine conflict
impacts(4)
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(156)
|
|
(156)
|
|
(156)
|
|
(10.4)
|
Other
|
|
4
|
|
4
|
|
4
|
|
0.3
|
|
2
|
|
2
|
|
2
|
|
—
|
Amortization of
acquired intangibles(5)
|
|
|
|
122
|
|
122
|
|
8.0
|
|
|
|
120
|
|
120
|
|
8.0
|
Tax effect of above
items
|
|
|
|
|
|
(36)
|
|
(2.4)
|
|
|
|
|
|
(45)
|
|
(2.9)
|
Adjusted EBITDA,
EBIT, Net income and EPS
|
|
1,507
|
|
1,196
|
|
857
|
|
56.2
|
|
1,478
|
|
1,173
|
|
808
|
|
54.1
|
Reconciliation of
adjusted growth to comparable constant currency
growth
|
|
|
|
|
|
|
|
|
|
|
% growth - Adjusted
EBITDA, EBIT, Net income, and EPS
|
|
|
|
|
|
|
|
(2)
|
|
(2)
|
|
(6)
|
|
(4)
|
% items affecting
comparability(6)
|
|
|
|
|
|
|
|
|
|
3
|
|
3
|
|
3
|
|
4
|
% currency
impact
|
|
|
|
|
|
|
|
|
|
3
|
|
3
|
|
4
|
|
4
|
% comparable
constant currency growth
|
|
|
|
|
|
|
|
|
|
4
|
|
4
|
|
1
|
|
4
|
(1) Calculation of
diluted EPS for the three and nine months ended March 31, 2023
excludes net income attributable to shares to be repurchased under
forward contracts of $1 million and $6 million respectively and $1
million and $2 million respectively for the three and nine months
ended March 31, 2022.
(2) Net loss on
disposals for the nine months ended March 31, 2022 includes an
expense of $9 million, triggered by the disposal of non-core
assets.
(3) Property and other
losses, net includes property and related business losses primarily
associated with the destruction of the Company's Durban, South
Africa, facility during general civil unrest in July 2021, net of
insurance recovery.
(4) Includes the net
gain on disposal of the Russian business and incremental
restructuring and other costs attributable to group wide
initiatives to offset divested earnings from the Russian
business.
(5) Amortization of
acquired intangible assets from business combination.
(6) Reflects the impact
of acquired, disposed and ceased operations.
|
Reconciliation of adjusted EBIT by reporting segment
|
|
Three Months Ended
March 31, 2022
|
|
Three Months Ended
March 31, 2023
|
($
million)
|
|
Flexibles
|
|
Rigid
Packaging
|
|
Other
|
|
Total
|
|
Flexibles
|
|
Rigid
Packaging
|
|
Other
|
|
Total
|
Net income
attributable to Amcor
|
|
|
|
|
|
|
|
269
|
|
|
|
|
|
|
|
177
|
Net income attributable
to non-controlling interests
|
|
|
|
|
|
|
|
2
|
|
|
|
|
|
|
|
2
|
Tax expense
|
|
|
|
|
|
|
|
72
|
|
|
|
|
|
|
|
34
|
Interest expense,
net
|
|
|
|
|
|
|
|
31
|
|
|
|
|
|
|
|
71
|
EBIT
|
|
332
|
|
70
|
|
(28)
|
|
374
|
|
248
|
|
56
|
|
(20)
|
|
284
|
2019 Bemis Integration
Plan
|
|
9
|
|
—
|
|
—
|
|
9
|
|
—
|
|
—
|
|
—
|
|
—
|
Impact of
hyperinflation
|
|
—
|
|
6
|
|
—
|
|
6
|
|
—
|
|
6
|
|
—
|
|
6
|
Property and other
gains, net
|
|
(4)
|
|
—
|
|
—
|
|
(4)
|
|
—
|
|
—
|
|
—
|
|
—
|
Russia-Ukraine conflict
impacts
|
|
—
|
|
—
|
|
—
|
|
—
|
|
42
|
|
6
|
|
—
|
|
48
|
Other
|
|
2
|
|
—
|
|
—
|
|
2
|
|
8
|
|
—
|
|
(4)
|
|
4
|
Amortization of
acquired intangibles
|
|
39
|
|
1
|
|
—
|
|
40
|
|
39
|
|
1
|
|
—
|
|
40
|
Adjusted
EBIT
|
|
378
|
|
77
|
|
(28)
|
|
427
|
|
337
|
|
69
|
|
(24)
|
|
382
|
Adjusted EBIT /
sales %
|
|
13.3 %
|
|
8.9 %
|
|
|
|
11.5 %
|
|
12.1 %
|
|
7.8 %
|
|
|
|
10.4 %
|
Reconciliation of
adjusted growth to comparable constant currency
growth
|
|
|
|
|
|
|
|
|
% growth - Adjusted
EBIT
|
|
|
|
|
|
|
|
|
|
(11)
|
|
(10)
|
|
|
|
(11)
|
% items affecting
comparability
|
|
|
|
|
|
|
|
|
|
8
|
|
—
|
|
|
|
7
|
% currency
impact
|
|
|
|
|
|
|
|
|
|
2
|
|
1
|
|
|
|
1
|
% comparable
constant currency
|
|
|
|
|
|
|
|
|
|
(1)
|
|
(9)
|
|
|
|
(2.5)
|
|
|
Nine Months Ended
March 31, 2022
|
|
Nine Months Ended
March 31, 2023
|
($
million)
|
|
Flexibles
|
|
Rigid
Packaging
|
|
Other
|
|
Total
|
|
Flexibles
|
|
Rigid
Packaging
|
|
Other
|
|
Total
|
Net income
attributable to Amcor
|
|
|
|
|
|
|
|
696
|
|
|
|
|
|
|
|
868
|
Net income attributable
to non-controlling interests
|
|
|
|
|
|
|
|
7
|
|
|
|
|
|
|
|
6
|
Tax expense
|
|
|
|
|
|
|
|
196
|
|
|
|
|
|
|
|
125
|
Interest expense,
net
|
|
|
|
|
|
|
|
100
|
|
|
|
|
|
|
|
189
|
EBIT
|
|
891
|
|
178
|
|
(70)
|
|
999
|
|
1,075
|
|
163
|
|
(50)
|
|
1,188
|
2019 Bemis Integration
Plan
|
|
26
|
|
—
|
|
—
|
|
26
|
|
—
|
|
—
|
|
—
|
|
—
|
Net loss on
disposals(1)
|
|
9
|
|
—
|
|
—
|
|
9
|
|
—
|
|
—
|
|
—
|
|
—
|
Impact of
hyperinflation
|
|
—
|
|
10
|
|
—
|
|
10
|
|
—
|
|
19
|
|
—
|
|
19
|
Property and other
losses, net(2)
|
|
23
|
|
—
|
|
—
|
|
23
|
|
—
|
|
—
|
|
—
|
|
—
|
Pension
settlements
|
|
—
|
|
2
|
|
1
|
|
3
|
|
—
|
|
—
|
|
—
|
|
—
|
Russia-Ukraine conflict
impacts(3)
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(162)
|
|
6
|
|
—
|
|
(156)
|
Other
|
|
2
|
|
—
|
|
2
|
|
4
|
|
14
|
|
—
|
|
(12)
|
|
2
|
Amortization of
acquired intangibles(4)
|
|
118
|
|
4
|
|
—
|
|
122
|
|
116
|
|
4
|
|
—
|
|
120
|
Adjusted
EBIT
|
|
1,069
|
|
194
|
|
(67)
|
|
1,196
|
|
1,043
|
|
192
|
|
(62)
|
|
1,173
|
Adjusted EBIT /
sales %
|
|
13.1 %
|
|
7.9 %
|
|
|
|
11.2 %
|
|
12.4 %
|
|
7.3 %
|
|
|
|
10.6 %
|
Reconciliation of
adjusted growth to comparable constant currency
growth
|
|
|
|
|
|
|
|
|
% growth - Adjusted
EBIT
|
|
|
|
|
|
|
|
|
|
(2)
|
|
(1)
|
|
|
|
(2)
|
% items affecting
comparability(5)
|
|
|
|
|
|
|
|
|
|
3
|
|
—
|
|
|
|
3
|
% currency
impact
|
|
|
|
|
|
|
|
|
|
4
|
|
1
|
|
|
|
3
|
% comparable
constant currency
|
|
|
|
|
|
|
|
|
|
5
|
|
—
|
|
|
|
4
|
(1) Net loss on
disposals for the nine months ended March 31, 2022 includes an
expense of $9 million, triggered by the disposal of non-core
assets.
(2) Property and other
losses, net includes property and related business losses primarily
associated with the destruction of the Company's Durban, South
Africa, facility during general civil unrest in July 2021, net of
insurance recovery.
(3) Includes the net
gain on disposal of the Russian business and incremental
restructuring and other costs attributable to group wide
initiatives to offset divested earnings from the Russian
business.
(4) Amortization of
acquired intangible assets from business combination.
(5) Reflects the impact
of acquired, disposed and ceased operations.
|
Reconciliations of Adjusted Free Cash Flow
|
|
Nine Months Ended
March 31,
|
($
million)
|
|
2022
|
|
2023
|
Net cash provided by
operating activities
|
|
589
|
|
329
|
Purchase of property,
plant, and equipment, and other intangible assets
|
|
(373)
|
|
(382)
|
Proceeds from sales of
property, plant, and equipment, and other intangible
assets
|
|
7
|
|
12
|
Russia-Ukraine conflict
impacts, material transaction and
integration related costs
|
|
40
|
|
55
|
Adjusted Free Cash
Flow(1)
|
|
263
|
|
14
|
(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.
|
|
|
Nine Months Ended
March 31,
|
($
million)
|
|
2022
|
|
2023
|
Adjusted
EBITDA
|
|
1,507
|
|
1,478
|
Interest paid,
net
|
|
(72)
|
|
(169)
|
Income tax
paid
|
|
(163)
|
|
(130)
|
Purchase of property,
plant, and equipment and other intangible assets
|
|
(373)
|
|
(382)
|
Proceeds from sales of
property, plant, and equipment and other intangible
assets
|
|
7
|
|
12
|
Movement in working
capital
|
|
(647)
|
|
(801)
|
Other
|
|
4
|
|
6
|
Adjusted Free Cash
Flow(1)
|
|
263
|
|
14
|
(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
|
|
March 31,
2023
|
Cash and cash
equivalents
|
|
(775)
|
|
(564)
|
Short-term
debt
|
|
136
|
|
196
|
Current portion of
long-term debt
|
|
14
|
|
13
|
Long-term debt, less
current portion
|
|
6,340
|
|
6,804
|
Net
debt
|
|
5,715
|
|
6,449
|
View original
content:https://www.prnewswire.com/news-releases/amcor-reports-third-quarter-result-and-updates-fiscal-2023-outlook-301812592.html
SOURCE Amcor