Summary
Amcor plc's Form 10-Q for the quarter ended September 30, 2022, indicates a period of revenue growth driven by price increases, despite some volume headwinds. Net sales increased by 9% year-over-year, largely due to the pass-through of higher raw material costs. However, excluding these cost pass-throughs, net sales saw a more modest 3% organic increase, primarily from favorable price/mix, though volumes declined slightly. The company reported a 15% increase in net income attributable to Amcor plc, reaching $232 million, leading to a 18% rise in diluted earnings per share to $0.155. This improvement was driven by higher gross profit and reduced operating expenses, though partially offset by increased interest expenses due to rising interest rates. Amcor is actively managing inflationary pressures and supply chain disruptions through cost control initiatives and by working with suppliers and customers. The company is also progressing with its exit from Russian operations, which incurred a $90 million impairment charge in the prior fiscal year. Liquidity remains adequate, supported by operating cash flows, credit facilities, and access to the commercial paper market. However, net debt increased to $6.4 billion, reflecting higher inventory levels and recent acquisitions. Amcor continues to return capital to shareholders through dividends and share repurchases, with a new $400 million buyback program approved.
Financial Highlights
53 data points| Revenue | $3.71B |
| Cost of Revenue | $3.04B |
| Gross Profit | $668.00M |
| R&D Expenses | $25.00M |
| SG&A Expenses | $302.00M |
| Operating Income | $342.00M |
| Interest Expense | $59.00M |
| Net Income | $232.00M |
| EPS (Basic) | $0.78 |
| EPS (Diluted) | $0.77 |
| Shares Outstanding (Diluted) | 297.20M |
Key Highlights
- 1Net sales increased 9% year-over-year to $3.71 billion, primarily driven by price/mix improvements and the pass-through of higher raw material costs.
- 2Net income attributable to Amcor plc rose 15% to $232 million, with diluted EPS increasing 18% to $0.155.
- 3Operating income increased to $342 million, with operating income as a percentage of net sales improving to 9.2% from 8.7% in the prior year period.
- 4The company is actively managing inflationary pressures and supply chain disruptions, noting that the pass-through of raw material costs impacted gross profit margins.
- 5Amcor continues its strategy to exit Russian operations, with no further impairment charge recognized in this quarter.
- 6Net cash used in operating activities increased significantly to $260 million, largely due to higher inventory levels and the timing of raw material costs.
- 7Net debt increased to $6.4 billion, up from $5.7 billion at the end of the prior fiscal year, driven by higher inventory and an acquisition.
- 8The company declared a quarterly cash dividend of $0.1225 per share and has an approved $400 million share buyback program.