10-QPeriod: Q2 FY2021

Amcor plc Quarterly Report for Q2 Ended Dec 31, 2020

Filed February 4, 2021For Securities:AMCRAMCCF

Summary

Amcor plc (AMCR) reported a solid financial performance for the second quarter and first half of fiscal year 2021, reflecting improved profitability and operational efficiency. Net sales for the three months ended December 31, 2020, increased by 2.0% to $3,103 million, year-over-year, driven by favorable volumes. Net income attributable to Amcor plc rose significantly by 18% to $219 million, resulting in a diluted EPS of $0.139, up from $0.115 in the prior year's quarter. For the six months ended December 31, 2020, net sales saw a modest increase of 0.3% to $6,200 million, while net income attributable to Amcor plc surged by 65% to $417 million, with diluted EPS improving to $0.265 from $0.155. The company's operational improvements, cost management initiatives, and synergies from the Bemis acquisition contributed to enhanced profitability. Amcor also continues to manage its capital structure effectively, with a robust cash flow from operations and a reaffirmed belief in sufficient liquidity to meet its obligations and shareholder returns.

Financial Highlights

54 data points
Beta

Revenue

$3.10B

21.0% Gross Margin

Net Income

$219.00M

7.1% Net Margin

EPS (Diluted)

$0.70

Total Assets

$16.72B

Cash & Equivalents

$755.00M

Free Cash Flow

$552.00M

Financial Statements
Beta
Revenue$3.10B
Cost of Revenue$2.45B
Gross Profit$651.00M
R&D Expenses$23.00M
SG&A Expenses$308.00M
Operating Income$307.00M
Interest Expense$37.00M
Net Income$219.00M
EPS (Basic)$0.70
EPS (Diluted)$0.70
Shares Outstanding (Basic)312.38M
Shares Outstanding (Diluted)314.00M

Key Highlights

  • 1Amcor plc reported a 2.0% increase in net sales to $3,103 million for the three months ended December 31, 2020, driven by volume growth.
  • 2Net income attributable to Amcor plc increased by 18% to $219 million for the three-month period, leading to a diluted EPS of $0.139.
  • 3For the six months ended December 31, 2020, net income attributable to Amcor plc grew significantly by 65% to $417 million, with diluted EPS rising to $0.265.
  • 4The company experienced strong performance in its Flexibles segment, with Adjusted EBIT increasing by 6.5% for the quarter and 8.4% for the half-year.
  • 5Rigid Packaging segment also showed positive trends with a 3.9% increase in net sales for the quarter and a 5.7% increase in Adjusted EBIT for the half-year.
  • 6Interest expense decreased substantially, reflecting successful debt management and lower interest rates.
  • 7Amcor continues to actively manage its capital structure, announcing an additional $200 million share buyback program in February 2021.

Frequently Asked Questions

Amcor's net sales increased by 2.0% to $3,103 million for the three months ended December 31, 2020, compared to $3,043 million for the same period in the prior year. This growth was primarily driven by favorable volumes.

Amcor demonstrated improved profitability in the reported periods. Net income attributable to Amcor plc increased by 18% for the quarter and 65% for the half-year. Key contributors include operational efficiencies, synergies from the Bemis acquisition, effective cost management, and a decrease in interest expenses.

Amcor continues to manage its capital structure effectively. The company has seen a decrease in interest expense due to debt repayment and refinancing. Furthermore, Amcor announced an additional $200 million share buyback program in February 2021, indicating a commitment to returning capital to shareholders alongside its regular dividend payments.

Amcor's operations have largely been deemed essential, with most facilities remaining operational despite isolated disruptions and volatility in customer order patterns. The company prioritizes employee health and safety and collaborates with customers and suppliers to navigate supply chain challenges. While Amcor is well-positioned, it acknowledges the ongoing uncertainty and cannot precisely estimate the pandemic's ultimate duration and impact on the global economy and its own financial results.