Summary
Amcor plc's (AMCR) Form 10-Q for the third quarter of fiscal year 2022, ending March 31, 2022, reveals a solid performance driven by increased net sales, primarily attributed to favorable price/mix and volumes across its Flexible and Rigid Packaging segments. Net sales grew by 15.6% year-over-year for the quarter, and 13.1% for the nine-month period, reflecting effective raw material cost pass-through and strategic pricing initiatives. While gross profit saw an increase, the gross profit margin slightly contracted due to the pass-through of higher raw material costs. Operating income remained stable year-over-year for the quarter, but saw a slight decrease as a percentage of net sales due to the same margin pressure. Net income attributable to Amcor plc saw a modest increase, and diluted EPS improved, supported by share repurchases. The company continues to navigate macroeconomic challenges including inflation, supply chain disruptions, and geopolitical risks stemming from the Russia-Ukraine conflict. However, Amcor has demonstrated resilience, with no material impact on its operating results or liquidity to date. The company maintains a strong liquidity position and reaffirms its confidence in its ability to fund operations, capital expenditures, and shareholder returns.
Financial Highlights
54 data points| Revenue | $3.71B |
| Cost of Revenue | $2.98B |
| Gross Profit | $731.00M |
| R&D Expenses | $24.00M |
| SG&A Expenses | $326.00M |
| Operating Income | $369.00M |
| Interest Expense | $36.00M |
| Net Income | $269.00M |
| EPS (Basic) | $0.89 |
| EPS (Diluted) | $0.89 |
| Shares Outstanding (Diluted) | 301.40M |
Key Highlights
- 1Net sales increased by 15.6% to $3,708 million for the three months ended March 31, 2022, compared to the prior year period, driven by favorable price/mix (4.5%) and volumes (0.3%), with raw material cost pass-through contributing significantly.
- 2Operating income for the quarter was $369 million, flat year-over-year, with operating income as a percentage of net sales declining from 11.6% to 10.0% due to the impact of higher raw material cost pass-through.
- 3Net income attributable to Amcor plc increased slightly by 0.7% to $269 million for the quarter, and diluted EPS grew to $0.178 from $0.173.
- 4The company is actively managing supply chain and inflationary pressures, with proactive measures to mitigate impacts from the Russia-Ukraine conflict, which has not materially affected operations to date.
- 5Amcor maintained a strong liquidity position, with cash and cash equivalents of $1,077 million as of March 31, 2022. The company also completed an amendment to its credit facilities, increasing the aggregate committed amount to $3.8 billion.
- 6Shareholder returns were supported by $423 million in share repurchases during the nine months ended March 31, 2022, and a declared quarterly dividend of $0.12 per share.
- 7The Flexibles segment continues to be the largest revenue driver, with net sales increasing by 13.5% for the quarter, while the Rigid Packaging segment also saw strong sales growth of 23.2%.