01—Abstract
Summary
Summary of the 10-K filed August 17, 2023. Cited figures are marked; the original filing is the authoritative source.
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 billiona 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.
02—Key points
Key Highlights
- Amcor generated $14.7 billion in sales for fiscal year 2023, a 1% increase driven by price/mix benefits offsetting volume declines.
- Net 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.
- The company is investing $110 million to $130 million in cost-saving initiatives (2023 Restructuring Plan) to partially offset divested earnings from its Russian operations.
- Amcor operates with two main segments: Flexibles (76% of sales) and Rigid Packaging (24% of sales), serving diverse end markets.
- The company emphasizes sustainability as a growth opportunity, investing approximately $100 million annually in R&D for responsible packaging solutions.
- Amcor 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.
- The company returned $431 million to shareholders through share repurchases and paid $723 million in dividends during fiscal year 2023.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2023, Amcor plc kept $0.07.
- Revenue$14.69B100.0%
- Cost of revenue−$11.97B81.5%
- Gross profit$2.73B18.5%
- Operating costs−$1.22B8.3%
- Operating income$1.51B10.3%
- Interest, other & tax−$460.0M3.1%
- Net income$1.05B7.1%
Where FY2023 revenue went
$14.69B- Cost of revenue: $11.97B, 81% of revenue
- Net income: $1.05B, 7.1% of revenue
- R&D: $101.0M, 0.7% of revenue
- SG&A: $1.09B, 7.4% of revenue
- Interest, other & tax: $460.0M, 3.1% of revenue
Kept 7.1% as net incomeNet income $1.05B · 7.1%R&D $101.0M · 0.7%
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2023filed August 17, 2023Financial Statements
FY2023 against FY2022
| Line item | FY2023FY2022 | Change |
|---|---|---|
| Revenue | $14.69B$14.54B | +1.0% |
| Cost of Revenue | $11.97B$11.72B | +2.1% |
| Gross Profit | $2.73B$2.82B | −3.4% |
| R&D Expenses | $101.00M$96.00M | +5.2% |
| SG&A Expenses | $1.09B$1.28B | −15.4% |
| Operating Income | $1.51B$1.24B | +21.7% |
| Interest Expense | $290.00M$159.00M | +82.4% |
| Net Income | $1.05B$805.00M | +30.2% |
| EPS (Basic) | $3.54$2.66 | +33.3% |
| EPS (Diluted) | $3.52$2.65 | +33.3% |
| Shares Outstanding (Basic) | 295.60M302.80M | −2.4% |
| Shares Outstanding (Diluted) | 295.20M303.20M | −2.6% |
05—Questions
Frequently Asked Questions
What were Amcor's key financial results for fiscal year 2023?
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.
How is Amcor addressing inflationary pressures and supply chain challenges?
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.
What is Amcor's strategy regarding sustainability?
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.
How did the sale of the Russian business impact Amcor's financial results?
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.
06—Continue