10-KPeriod: FY2024

Amcor plc Annual Report, Year Ended Jun 30, 2024

Filed August 16, 2024For Securities:AMCRAMCCF

Summary

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 billion, 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.

Financial Highlights

55 data points
Beta

Revenue

$13.64B

19.9% Gross Margin

Net Income

$730.00M

5.4% Net Margin

EPS (Diluted)

$2.52

Total Assets

$16.52B

Cash & Equivalents

$588.00M

Free Cash Flow

$837.00M

Financial Statements
Beta
Revenue$13.64B
Cost of Revenue$10.93B
Gross Profit$2.71B
R&D Expenses$106.00M
SG&A Expenses$1.09B
Operating Income$1.21B
Interest Expense$348.00M
Net Income$730.00M
EPS (Basic)$2.52
EPS (Diluted)$2.52
Shares Outstanding (Basic)289.00M
Shares Outstanding (Diluted)288.20M

Key Highlights

  • 1Net 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.
  • 2Net 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.
  • 3The 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.
  • 4Amcor is advancing its sustainability commitments, including targets for recycled materials and science-based targets for greenhouse gas emissions reduction.
  • 5The company maintained an investment-grade credit rating and had $2.4 billion in undrawn credit facilities as of June 30, 2024, indicating strong liquidity.
  • 6Shareholder returns included $722 million in dividends paid and $30 million in share repurchases during the fiscal year.

Frequently Asked Questions

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.

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).

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.

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.