10-QPeriod: Q3 FY2025

Amcor plc Quarterly Report for Q3 Ended Mar 31, 2025

Filed May 1, 2025For Securities:AMCRAMCCF

Summary

Amcor plc (AMCR) reported its third-quarter fiscal year 2025 results, marked by the significant event of completing its merger with Berry Global Group, Inc. on April 30, 2025. For the quarter ending March 31, 2025, Amcor reported a slight decrease in net sales to $3.33 billion from $3.41 billion in the prior year, attributed to currency headwinds and divested operations, though underlying sales showed modest growth. Net income attributable to Amcor plc increased by 5% to $196 million, translating to a diluted EPS of $0.136, up from $0.129 in the prior year, reflecting disciplined cost management and higher other income. The nine-month results show net sales of $9.93 billion, a 2% decrease year-over-year, impacted by similar factors as the quarterly results. However, net income attributable to Amcor plc saw a substantial increase of 16% to $550 million, with diluted EPS rising to $0.380 from $0.327. This improvement was driven by lower operating expenses, higher other income, and reduced interest expenses, partially offset by a slight decrease in gross profit. The company's liquidity remains robust, supported by operating cash flows and significant credit facilities, with net debt increasing due to the financing of the Berry acquisition. Investors should closely monitor the integration progress and realization of synergies from the Berry merger, which is expected to provide greater scale and enhanced market exposure.

Financial Highlights

51 data points
Beta

Revenue

$3.33B

19.6% Gross Margin

Net Income

$196.00M

5.9% Net Margin

EPS (Diluted)

$0.68

Total Assets

$18.04B

Cash & Equivalents

$2.04B

Free Cash Flow

$117.00M

Financial Statements
Beta
Revenue$3.33B
Cost of Revenue$2.68B
Gross Profit$654.00M
R&D Expenses$27.00M
SG&A Expenses$266.00M
Operating Income$313.00M
Net Income$196.00M
EPS (Basic)$0.68
EPS (Diluted)$0.68
Shares Outstanding (Diluted)289.10M

Key Highlights

  • 1Amcor completed its merger with Berry Global Group, Inc. on April 30, 2025, a transformative event for the company.
  • 2Net sales for the third quarter decreased slightly to $3.33 billion from $3.41 billion, impacted by foreign currency translation and divested operations.
  • 3Net income attributable to Amcor plc increased by 5% to $196 million for the quarter, resulting in diluted EPS of $0.136, up from $0.129.
  • 4For the nine-month period, net sales were $9.93 billion, down 2% year-over-year, while net income attributable to Amcor plc surged 16% to $550 million, with diluted EPS at $0.380.
  • 5The company secured a new $3.75 billion five-year syndicated credit facility and issued $2.2 billion in senior notes to finance the Berry acquisition.
  • 6Net debt increased to $6.8 billion as of March 31, 2025, reflecting the debt raised for the merger.
  • 7The company experienced a decrease in Selling, General, and Administrative (SG&A) expenses due to cost reduction initiatives and the non-recurrence of CEO transition costs.

Frequently Asked Questions

The merger with Berry Global Group, Inc. was completed on April 30, 2025, shortly after the quarter's end. While the financial statements reflect only the pre-merger Amcor, significant preparatory activities and financing, including the issuance of $2.2 billion in senior notes and a commitment for a $3.0 billion bridge loan facility (later reduced and terminated), have impacted the balance sheet and cash flows. The acquisition significantly increased total debt to $8.8 billion and net debt to $6.8 billion. Amcor is unable to provide a full purchase price accounting or pro-forma financial information for the combined entity in this report, which will be detailed in the upcoming Form 10-K.

For the three months ended March 31, 2025, net sales decreased by 2% to $3.33 billion. This decline was primarily due to negative foreign currency impacts ($78 million) and divestitures ($58 million). Underlying sales, excluding these factors and raw material cost pass-throughs, showed a modest increase of approximately $13 million due to flat volumes and favorable price/mix. Year-to-date, net sales were $9.93 billion, a 2% decrease, with similar drivers including currency headwinds and divestitures, though underlying sales showed growth driven by volumes and price/mix.

For the third quarter, net income attributable to Amcor plc rose 5% to $196 million, leading to a diluted EPS of $0.136. Year-to-date, net income attributable to Amcor plc increased by 16% to $550 million, with diluted EPS at $0.380. This improvement was supported by lower SG&A expenses, higher other income, and reduced interest expenses. The company anticipates that the Berry merger will provide greater scale, enhanced product development, and financial synergies, which should positively impact future profitability, although integration costs and execution risks will be key factors to monitor.

Amcor has significantly increased its debt to finance the Berry acquisition, with total debt reaching $8.8 billion and net debt at $6.8 billion as of March 31, 2025. The company entered into a new $3.75 billion five-year syndicated credit facility and issued $2.2 billion in senior notes. While the debt levels are higher, Amcor believes its operating cash flows, available credit facilities, and access to commercial paper will provide sufficient liquidity to fund its operations, capital expenditures, and dividends. The company's investment-grade credit ratings are expected to aid in managing its debt structure.