Summary
Amcor plc's (AMCR) Form 10-Q for the quarter ended September 30, 2019, details the financial impact of its recently completed acquisition of Bemis Company, Inc. The report shows a significant increase in net sales due to the Bemis integration, reaching $3,140.7 million, up from $2,262.4 million in the prior year's comparable quarter. However, net income attributable to Amcor plc saw a notable decrease to $66.0 million from $98.4 million, largely attributed to acquisition, transaction, and integration costs associated with the Bemis deal. Diluted Earnings Per Share (EPS) also declined to $0.04 from $0.08, reflecting both the lower net income and an increase in the number of outstanding shares due to the all-stock nature of the Bemis acquisition. The company also reported significant restructuring expenses related to the Bemis integration and a prior restructuring plan in its Rigid Packaging segment. Despite these integration costs and associated expense increases, Amcor's gross profit margin remained stable at 17.4%. The company maintains a strong liquidity position with $2.4 billion in undrawn credit facilities. Investors should monitor the ongoing integration of Bemis and the realization of targeted synergies, as well as the impact of restructuring costs on near-term profitability.
Financial Highlights
54 data points| Revenue | $3.14B |
| Cost of Revenue | $2.59B |
| Gross Profit | $547.00M |
| R&D Expenses | $26.00M |
| SG&A Expenses | $371.00M |
| Operating Income | $141.00M |
| Interest Expense | $60.00M |
| Net Income | $66.00M |
| EPS (Basic) | $0.20 |
| EPS (Diluted) | $0.20 |
| Shares Outstanding (Basic) | 324.70M |
| Shares Outstanding (Diluted) | 325.22M |
Key Highlights
- 1Net sales increased by 38.8% year-over-year to $3,140.7 million, primarily driven by the acquisition of Bemis.
- 2Net income attributable to Amcor plc decreased by 32.9% to $66.0 million, impacted by significant acquisition, transaction, and integration costs.
- 3Diluted EPS fell to $0.04 from $0.08 in the prior year's quarter, influenced by lower net income and a higher share count post-Bemis acquisition.
- 4The Flexibles segment saw substantial net sales growth (58.5%) and an increase in Adjusted EBIT, driven by the Bemis integration.
- 5The Rigid Packaging segment experienced a slight decrease in net sales (-2.5%) but saw an increase in Adjusted EBIT.
- 6The company has initiated a $200 million restructuring plan for Bemis integration, with $18 million in cash payments made in the first quarter of fiscal year 2020.
- 7Amcor maintains a strong liquidity position with $2.4 billion in undrawn credit facilities as of September 30, 2019.