10-KPeriod: FY2021

Amcor plc Annual Report, Year Ended Jun 30, 2021

Filed August 24, 2021For Securities:AMCRAMCCF

Summary

Amcor plc's 2021 10-K filing indicates a year of robust performance, marked by a 3.2% increase in net sales to $12.9 billion, driven by volume growth and favorable pricing, alongside a significant 53.4% rise in net income attributable to Amcor plc, reaching $939 million. This growth was supported by the integration of the Bemis acquisition and realized synergies, coupled with improved operating efficiencies and reduced interest expenses. The company continued its commitment to returning capital to shareholders through dividends and share repurchases, signaling confidence in its ongoing strategy. The report highlights Amcor's strategic focus on a focused portfolio of primary packaging for fast-moving consumer goods and its differentiated capabilities under "The Amcor Way." The company is navigating a dynamic market, including inflationary pressures and supply chain challenges, particularly in raw materials, which it managed through supplier and customer collaborations. Amcor's commitment to sustainability, with its goal to make all packaging recyclable or reusable by 2025, remains a key differentiator and a significant growth opportunity. Despite a complex operating environment, the company demonstrates resilience and a clear path for continued value creation.

Financial Statements
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Key Highlights

  • 1Amcor plc reported a 3.2% increase in net sales for fiscal year 2021, reaching $12.9 billion, driven by favorable volumes and price/mix.
  • 2Net income attributable to Amcor plc surged by 53.4% to $939 million, with diluted EPS increasing to $0.602.
  • 3The company successfully integrated the Bemis acquisition, progressing towards its target of $180 million in pre-tax synergies.
  • 4Amcor's Flexibles segment remains the largest contributor, with net sales of $10.04 billion, while the Rigid Packaging segment saw net sales of $2.82 billion.
  • 5Despite supply chain and raw material cost volatility, Amcor managed these challenges through close supplier and customer collaboration.
  • 6The company continued its capital return program, with approximately $350 million in share repurchases during the fiscal year, and an additional $400 million approved post-year-end.
  • 7Amcor maintained effective internal controls over financial reporting, remediating a previously identified material weakness.

Frequently Asked Questions

Amcor plc reported a net sales increase of 3.2% to $12.9 billion, with net income attributable to Amcor plc rising 53.4% to $939 million. Diluted earnings per share improved to $0.602.

Amcor is actively managing supply shortages and price volatility in raw materials by working closely with suppliers and customers, leveraging its global capabilities. The company expects these challenges to persist into fiscal year 2022.

Amcor is committed to developing all its packaging to be recyclable or reusable by 2025 and increasing the use of recycled materials. The company views sustainability as a key growth opportunity and is investing in innovation and collaborations to drive responsible packaging solutions.

Amcor returned capital through dividend payments and share repurchases. During fiscal year 2021, the company repurchased approximately $350 million of its shares and subsequently approved an additional $400 million buyback program.