01—Abstract
Summary
Summary of the 10-K filed August 18, 2022. Cited figures are marked; the original filing is the authoritative source.
Amcor plc's fiscal year 2022 Form 10-K filing reveals a company navigating a complex global economic environment, marked by inflationary pressures, supply chain disruptions, and geopolitical events such as the Russia-Ukraine conflict.
Despite these challenges, Amcor demonstrated resilience with a net sales increase of 13.1% to $14.5 billiona. However, net income attributable to Amcor plc decreased by 14.3% to $805 million, largely due to increased restructuring, impairment, and related expenses, particularly those associated with exiting its Russian operations and broader Russia-Ukraine conflict impacts. The company's strategic focus remains on its "focused portfolio" and "differentiated capabilities," aiming to be the leading global packaging company.
Sustainability continues to be a core tenet, with ongoing investments in responsible packaging innovation. Amcor's operations are broadly split between two segments: Flexibles (77%b of net sales) and Rigid Packaging (23% of net sales). The Flexibles segment saw net sales grow by 11.1%, while Rigid Packaging sales increased by 20.2%.
The company also returned significant capital to shareholders through dividends and share repurchases, completing $600 millionc in buybacks during the fiscal year and announcing a further $400 million program. Management is optimistic about continuing to manage supply chain volatility and inflationary impacts through pricing actions and operational efficiencies.
02—Key points
Key Highlights
- Net sales increased by 13.1% to $14.5 billion in fiscal year 2022, driven by favorable price/mix and volumes.
- Net income attributable to Amcor plc decreased by 14.3% to $805 million, impacted by $213 million in net expenses related to the Russia-Ukraine conflict and other restructuring/impairment charges.
- The company is strategically exiting its Russian operations, incurring a $90 million impairment charge and $110 million in other Russia-Ukraine related costs during FY2022.
- The Flexibles segment, representing 77% of net sales, saw sales grow by 11.1%, with Adjusted EBIT increasing by 6.3%.
- The Rigid Packaging segment, representing 23% of net sales, experienced a 20.2% sales increase, though Adjusted EBIT decreased by 3.3%.
- Amcor returned $732 million in dividends and completed $600 million in share repurchases during FY2022, announcing a new $400 million buyback program.
- The company continues to invest approximately $100 million annually in R&D to drive innovation in sustainable packaging solutions.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2022, Amcor plc kept $0.06.
- Revenue$14.54B100.0%
- Cost of revenue−$11.72B80.6%
- Gross profit$2.82B19.4%
- Operating costs−$1.58B10.9%
- Operating income$1.24B8.5%
- Interest, other & tax−$434.0M3.0%
- Net income$805.0M5.5%
Where FY2022 revenue went
$14.54B- Cost of revenue: $11.72B, 81% of revenue
- Net income: $805.0M, 5.5% of revenue
- R&D: $96.0M, 0.7% of revenue
- SG&A: $1.28B, 8.8% of revenue
- Other operating costs: $201.0M, 1.4% of revenue
- Interest, other & tax: $434.0M, 3.0% of revenue
Kept 5.5% as net incomeNet income $805.0M · 5.5%R&D $96.0M · 0.7%Other operating costs $201.0M · 1.4%
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2022filed August 18, 2022Financial Statements
FY2022 against FY2021
| Line item | FY2022FY2021 | Change |
|---|---|---|
| Revenue | $14.54B$12.86B | +13.1% |
| Cost of Revenue | $11.72B$10.13B | +15.7% |
| Gross Profit | $2.82B$2.73B | +3.2% |
| R&D Expenses | $96.00M$100.00M | −4.0% |
| SG&A Expenses | $1.28B$1.29B | −0.6% |
| Operating Income | $1.24B$1.32B | −6.2% |
| Interest Expense | $159.00M$153.00M | +3.9% |
| Net Income | $805.00M$939.00M | −14.3% |
| EPS (Basic) | $2.66$3.02 | −11.9% |
| EPS (Diluted) | $2.65$3.01 | −12.1% |
| Shares Outstanding (Basic) | 302.80M310.60M | −2.5% |
| Shares Outstanding (Diluted) | 303.20M311.20M | −2.6% |
05—Questions
Frequently Asked Questions
What were the main financial drivers for Amcor in FY2022?
Amcor experienced a 13.1% increase in net sales to $14.5 billion, driven by a combination of favorable price/mix (3.4%) and marginally favorable volumes (0.4%). However, net income attributable to Amcor plc decreased by 14.3% to $805 million due to significant increases in restructuring, impairment, and related expenses, notably those stemming from the Russia-Ukraine conflict and the exit from Russian operations.
How did the Russia-Ukraine conflict impact Amcor's financial performance?
The conflict led to a proactive suspension of operations in Ukraine and the decision to sell Russian operations. This resulted in $213 million in net expenses in FY2022, including impairment and restructuring costs, and specifically a $90 million non-cash impairment charge related to the Russian assets held for sale. The company also incurred $48 million in other impairment charges for assets in the conflict region and $62 million in restructuring costs.
What is Amcor's strategy regarding sustainability and innovation?
Sustainability is central to Amcor's business and growth strategy. The company is committed to designing all its packaging to be recycled, compostable, or reusable by 2025 and increasing its use of recycled content. Amcor invests approximately $100 million annually in research and development to drive innovation in responsible packaging, focusing on product innovation, consumer participation, and infrastructure development. This includes efforts to reduce greenhouse gas emissions and achieve net-zero emissions by 2050.
How is Amcor managing inflationary pressures and supply chain disruptions?
Amcor experienced persistent supply shortages and price volatility for certain raw materials and inputs during FY2022 due to factors including the COVID-19 pandemic and the Russia-Ukraine conflict. The company is working closely with suppliers and customers, leveraging its global capabilities, and implementing pricing actions and productivity programs to mitigate the impact of inflation and supply chain disruptions. While successful in managing some disruptions, these challenges are expected to continue.
06—Continue