01—Abstract
Summary
Summary of the 10-K filed August 16, 2024. Cited figures are marked; the original filing is the authoritative source.
Amcor plc (AMCR) reported a decrease in net sales and net income for the fiscal year ended June 30, 2024, compared to the prior year.
Net sales declined by 7% to $13.64 billiona, primarily due to lower volumes and a less favorable price/mix, exacerbated by customer destocking and softer consumer demand in the first half of the year. Net income attributable to Amcor plc fell by 30% to $730 million, impacted by the non-recurrence of a gain on the sale of its Russian business, higher interest expenses, and adverse impacts from highly inflationary accounting in Argentina. Despite these headwinds, the company saw sequential improvement in volume trajectory in the second half of fiscal year 2024, returning to volume growth in the fourth quarter.
Amcor continues to focus on managing costs, optimizing its supply chain, and driving innovation, particularly in sustainable packaging solutions. The company reiterated its commitment to sustainability goals, including targets for recycled content and net-zero emissions.
Amcor maintained its investment-grade credit rating and continued its share repurchase program, albeit at a reduced pace. Key operational risks include raw material price volatility, global economic conditions, and cybersecurity threats.
02—Key points
Key Highlights
- Net sales decreased by 7% to $13.64 billion for the fiscal year ended June 30, 2024, compared to $14.69 billion in the prior year, driven by lower volumes and unfavorable price/mix.
- Net income attributable to Amcor plc decreased by 30% to $730 million, impacted by the absence of a gain from the sale of its Russian business in the prior year, increased interest expense, and highly inflationary accounting effects in Argentina.
- The company experienced sequential improvement in demand and returned to volume growth in the fourth quarter of fiscal year 2024 after a period of customer destocking.
- Amcor is advancing its sustainability commitments, including targets for recycled materials and science-based targets for greenhouse gas emissions reduction.
- The company maintained an investment-grade credit rating and had $2.4 billion in undrawn credit facilities as of June 30, 2024, indicating strong liquidity.
- Shareholder returns included $722 million in dividends paid and $30 million in share repurchases during the fiscal year.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2024, Amcor plc kept $0.05.
- Revenue$13.64B100.0%
- Cost of revenue−$10.93B80.1%
- Gross profit$2.71B19.9%
- Operating costs−$1.50B11.0%
- Operating income$1.21B8.9%
- Interest, other & tax−$484.0M3.5%
- Net income$730.0M5.4%
Where FY2024 revenue went
$13.64B- Cost of revenue: $10.93B, 80% of revenue
- Net income: $730.0M, 5.4% of revenue
- R&D: $106.0M, 0.8% of revenue
- SG&A: $1.09B, 8.0% of revenue
- Other operating costs: $299.0M, 2.2% of revenue
- Interest, other & tax: $484.0M, 3.5% of revenue
Kept 5.4% as net incomeNet income $730.0M · 5.4%R&D $106.0M · 0.8%
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2024filed August 16, 2024Financial Statements
FY2024 against FY2023
| Line item | FY2024FY2023 | Change |
|---|---|---|
| Revenue | $13.64B$14.69B | −7.2% |
| Cost of Revenue | $10.93B$11.97B | −8.7% |
| Gross Profit | $2.71B$2.73B | −0.5% |
| R&D Expenses | $106.00M$101.00M | +5.0% |
| SG&A Expenses | $1.09B$1.09B | +0.6% |
| Operating Income | $1.21B$1.51B | −19.5% |
| Interest Expense | $348.00M$290.00M | +20.0% |
| Net Income | $730.00M$1.05B | −30.3% |
| EPS (Basic) | $2.52$3.54 | −28.8% |
| EPS (Diluted) | $2.52$3.52 | −28.4% |
| Shares Outstanding (Basic) | 289.00M295.60M | −2.2% |
| Shares Outstanding (Diluted) | 288.20M295.20M | −2.4% |
05—Questions
Frequently Asked Questions
What were Amcor's key financial results for the fiscal year ended June 30, 2024?
Amcor reported net sales of $13.64 billion, a decrease of 7% from the prior year. Net income attributable to Amcor plc was $730 million, a 30% decrease. Diluted earnings per share were $0.505, down from $0.705 in the prior year. Adjusted EBIT was $1.56 billion, a slight decrease from $1.61 billion.
What drove the decrease in net sales and net income?
The decrease in net sales was primarily due to lower volumes (5% decrease) and an unfavorable price/mix (1% decrease), influenced by customer destocking and softer consumer demand. The significant drop in net income was largely due to the non-recurrence of a $215 million pre-tax gain on the sale of the Russian business in the prior year, higher interest expenses ($58 million increase), and adverse impacts from highly inflationary accounting in Argentina ($53 million loss).
How is Amcor addressing the current economic environment and market conditions?
Amcor is focusing on taking price and cost actions to offset inflation, aligning its cost base with market dynamics, and managing working capital. The company also noted a sequential improvement in demand, with a return to volume growth in the fourth quarter of fiscal year 2024, attributed to the abatement of destocking and higher customer demand.
What is Amcor's stance on sustainability?
Sustainability is deeply embedded in Amcor's business strategy. The company is committed to designing packaging to be recyclable, compostable, or reusable by 2025 and has increased its target for recycled material use to 30% by 2030. Amcor has also set science-based targets to reduce greenhouse gas emissions, aiming for net-zero by 2050, with near-term targets validated by the Science Based Targets initiative.
06—Continue