Summary
Amcor plc (AMCR) reported a decrease in net sales and net income for the third quarter of fiscal year 2024 compared to the same period last year. Net sales declined by 7% to $3,443 million, primarily due to unfavorable volume changes and the pass-through of lower raw material costs, partially offset by price/mix benefits and positive currency impacts. Net income attributable to Amcor plc fell by 34% to $152 million, impacted by lower gross profit, increased restructuring expenses, and higher net interest expense due to rising interest rates. The company is navigating a challenging market characterized by continued customer destocking, soft consumer demand, and inflationary pressures. Management is focused on price and cost actions to mitigate these headwinds and expects performance to improve in the latter half of fiscal year 2024. Despite the current headwinds, Amcor maintains a strong liquidity position with significant undrawn credit facilities and believes it has sufficient resources to fund operations, capital expenditures, and shareholder returns.
Financial Highlights
55 data points| Revenue | $3.44B |
| Cost of Revenue | $2.80B |
| Gross Profit | $645.00M |
| R&D Expenses | $27.00M |
| SG&A Expenses | $302.00M |
| Operating Income | $270.00M |
| Interest Expense | $85.00M |
| Net Income | $152.00M |
| EPS (Basic) | $0.52 |
| EPS (Diluted) | $0.52 |
| Shares Outstanding (Diluted) | 287.80M |
Key Highlights
- 1Net sales decreased by 7% to $3,443 million for the three months ended September 30, 2023, compared to $3,712 million in the prior year period, driven by a 6% unfavorable volume and the pass-through of lower raw material costs.
- 2Net income attributable to Amcor plc decreased by 34% to $152 million ($0.105 diluted EPS) compared to $232 million ($0.155 diluted EPS) in the prior year period.
- 3Gross profit margin improved to 18.7% from 18.0%, driven by favorable price/mix and better operating cost performance, despite the overall decline in gross profit.
- 4Restructuring and related expenses increased significantly to $28 million from $1 million, primarily due to the ongoing 2023 Restructuring Plan.
- 5Interest expense rose by 44% to $85 million from $59 million, reflecting higher interest rates on the company's variable rate debt.
- 6The company has a strong liquidity position with $1.0 billion in undrawn credit facilities and $6.6 billion in net debt as of September 30, 2023.
- 7Amcor completed a small acquisition in India for $14 million, adding to its Flexibles segment, and continues to manage its business through challenging market conditions.