10-KPeriod: FY2023

Amcor plc Annual Report, Year Ended Jun 30, 2023

Filed August 17, 2023For Securities:AMCRAMCCF

Summary

Amcor plc's (AMCR) Form 10-K for the fiscal year ended June 30, 2023, highlights a year of resilience and strategic adaptation. The company generated $14.7 billion in sales, a slight increase year-over-year, driven by price/mix benefits partially offset by volume declines. Net income attributable to Amcor plc saw a significant increase of 30%, largely due to a gain from the sale of its Russian business and reduced restructuring expenses. The company continues to navigate inflationary pressures and supply chain volatility by focusing on cost efficiencies and price recovery. Amcor's commitment to sustainability remains a core tenet, with ongoing investments in innovation and a clear path toward its sustainability ambitions. The company maintained its investment-grade credit rating and continued to return capital to shareholders through dividends and share repurchases, demonstrating a balanced approach to financial management amidst a challenging global economic environment.

Financial Highlights

55 data points
Beta

Revenue

$14.69B

18.5% Gross Margin

Net Income

$1.05B

7.1% Net Margin

EPS (Diluted)

$3.52

Total Assets

$17.00B

Cash & Equivalents

$689.00M

Free Cash Flow

$660.00M

Financial Statements
Beta
Revenue$14.69B
Cost of Revenue$11.97B
Gross Profit$2.73B
R&D Expenses$101.00M
SG&A Expenses$1.09B
Operating Income$1.51B
Interest Expense$290.00M
Net Income$1.05B
EPS (Basic)$3.54
EPS (Diluted)$3.52
Shares Outstanding (Basic)295.60M
Shares Outstanding (Diluted)295.20M

Key Highlights

  • 1Amcor generated $14.7 billion in sales for fiscal year 2023, a 1% increase driven by price/mix benefits offsetting volume declines.
  • 2Net income attributable to Amcor plc increased by 30% to $1,048 million, boosted by a $215 million pre-tax gain on the sale of its Russian business.
  • 3The company is investing $110 million to $130 million in cost-saving initiatives (2023 Restructuring Plan) to partially offset divested earnings from its Russian operations.
  • 4Amcor operates with two main segments: Flexibles (76% of sales) and Rigid Packaging (24% of sales), serving diverse end markets.
  • 5The company emphasizes sustainability as a growth opportunity, investing approximately $100 million annually in R&D for responsible packaging solutions.
  • 6Amcor maintained financial flexibility with $1.3 billion in undrawn credit facilities as of June 30, 2023, and remains committed to its investment-grade credit rating.
  • 7The company returned $431 million to shareholders through share repurchases and paid $723 million in dividends during fiscal year 2023.

Frequently Asked Questions

For fiscal year 2023, Amcor reported net sales of $14.7 billion, a 1% increase over the prior year. Operating income was $1,508 million, and net income attributable to Amcor plc was $1,048 million, a 30% increase. Diluted earnings per share were $0.705.

Amcor is addressing inflationary pressures by focusing on cost-saving initiatives, including a $110-$130 million investment in cost savings linked to the Russian business sale, and by passing on higher raw material costs through pricing actions. The company is also working with suppliers and customers to manage supply chain disruptions.

Sustainability is central to Amcor's business strategy, viewed as a significant growth opportunity. The company invests approximately $100 million annually in R&D for responsible packaging solutions and has committed to designing all packaging to be recycled, compostable, or reusable by 2025, while increasing recycled content usage. Amcor is also setting science-based targets to reduce greenhouse gas emissions, aiming for net zero by 2050.

The sale of Amcor's Russian business on December 23, 2022, resulted in a pre-tax net gain of $215 million, which significantly contributed to the increase in net income for fiscal year 2023. Proceeds from the sale were allocated to cost-saving initiatives, share repurchases, and debt reduction.