01—Abstract
Summary
Summary of the 10-Q filed November 6, 2025. Cited figures are marked; the original filing is the authoritative source.
Amcor plc reported significant year-over-year growth in net sales for the three months ended September 30, 2025, primarily driven by the recent acquisition of Berry Global Group, Inc. The merger, completed in April 2025, significantly expanded Amcor's scale and market presence.
While net sales saw a substantial increase, the company also incurred higher operating expenses, including amortization of acquired intangible assets and restructuring and integration costs, directly attributable to the merger. Consequently, diluted earnings per share (EPS) saw a decrease compared to the prior year, despite an increase in net income. Amcor is actively managing the integration of Berry and has initiated a "Berry Plan" to realize synergies and achieve cost savings, with substantial pre-tax cash costs estimated.
Additionally, the company is exploring strategic alternatives for certain portfolio businesses representing $2.5 billiona in sales, which could involve restructuring or divestitures. Management is focused on navigating challenging economic conditions, including softer consumer demand and inflation, through pricing and cost actions. The company maintains sufficient liquidity through operating cash flows and available credit facilities.
02—Key points
Key Highlights
- Net sales for the three months ended September 30, 2025, increased by 71% year-over-year to $5.745 billion, largely due to the Berry Global acquisition.
- Operating income increased by 47.7% to $461 million, however, operating income as a percentage of net sales decreased from 9.3% to 8.0% due to higher expenses related to the acquisition.
- Net income attributable to Amcor plc rose by 37% to $262 million, but diluted EPS decreased by 14% to $0.113, reflecting the increased number of shares outstanding post-merger.
- The company incurred $75 million in restructuring, transaction, and integration expenses, a significant increase from $6 million in the prior year, primarily related to the Berry merger and integration.
- Amcor is undertaking a strategic review of its portfolio, identifying businesses with $2.5 billion in sales for potential restructuring or divestiture.
- Amcor's liquidity remains strong, supported by operating cash flows and credit facilities, with net debt increasing to $14.0 billion.
- The company experienced an increase in amortization of acquired intangible assets to $133 million, up from $39 million, due to the acquisition.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q1 FY2026, Amcor plc kept $0.05.
- Revenue$5.75B100.0%
- Cost of revenue−$4.62B80.4%
- Gross profit$1.12B19.6%
- Operating costs−$663.0M11.5%
- Operating income$461.0M8.0%
- Interest, other & tax−$199.0M3.5%
- Net income$262.0M4.6%
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2026filed November 6, 2025Financial Statements
Q1 FY2026 against Q1 FY2025
| Line item | Q1 FY2026Q1 FY2025 | Change |
|---|---|---|
| Revenue | $5.75B$3.35B | +71.3% |
| Cost of Revenue | $4.62B$2.69B | +71.5% |
| Gross Profit | $1.12B$659.00M | +70.6% |
| R&D Expenses | $46.00M$28.00M | +64.3% |
| SG&A Expenses | $435.00M$276.00M | +57.6% |
| Operating Income | $461.00M$312.00M | +47.8% |
| Net Income | $262.00M$191.00M | +37.2% |
| EPS (Basic) | $0.56$0.66 | −14.4% |
| EPS (Diluted) | $0.56$0.66 | −14.4% |
| Shares Outstanding (Basic) | 2.00M— | — |
| Shares Outstanding (Diluted) | 463.00M288.80M | +60.3% |
05—Questions
Frequently Asked Questions
How did the acquisition of Berry Global impact Amcor's financial results for the quarter?
The acquisition of Berry Global, completed on April 30, 2025, was the primary driver of Amcor's significant increase in net sales, which grew by 71% to $5.745 billion. However, the merger also led to higher operating expenses, including a substantial increase in amortization of acquired intangible assets (from $39 million to $133 million) and a sharp rise in restructuring, transaction, and integration expenses (from $6 million to $75 million). These factors, along with the issuance of new shares, contributed to a 14% decrease in diluted EPS despite a 37% rise in net income.
What is the 'Berry Plan' and what are its expected costs and benefits?
The 'Berry Plan' refers to the restructuring and integration activities initiated following the merger with Berry Global, aimed at integrating the combined organization. Amcor targets approximately $530 million in pre-tax synergies from procurement, supply chain, and administrative savings, plus additional financial and growth synergies by fiscal year 2028. The estimated pre-tax cash cost for the Berry Plan is $280 million, covering restructuring activities and general integration expenses. As of September 30, 2025, the company had incurred $165 million in restructuring project costs and $8 million in integration activities.
Is Amcor considering divesting any of its businesses?
Yes, in August 2025, Amcor announced it is reviewing strategic alternatives for businesses with combined sales of $2.5 billion. This review, which includes its North American Beverage business, could result in restructuring, partnerships, joint ventures, or cash sales. The company expects to make progress on actions related to this review in fiscal year 2026, but there is no certainty of a transaction or its success. The strategic review process itself may cause business disruptions and require significant resources.
How is Amcor managing the current economic environment?
Amcor is facing challenging market dynamics, including softer consumer demand and customer order volatility, alongside higher costs such as labor. The company is focused on implementing pricing and cost actions to offset inflation and align its cost structure with market conditions. Management is actively monitoring geopolitical tensions and tariff volatility, which could impact supply chains and increase costs.
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