Amcor plc (AMCR) Bundle
A Brief History of Amcor plc
Amcor plc, a global leader in packaging solutions, has a rich history marked by strategic expansions, acquisitions, and a commitment to sustainability. As of 2024, the company operates in over 40 countries and employs approximately 41,000 people, generating annual sales of approximately $13.6 billion.
Financial Performance Overview
For the three months ended September 30, 2024, Amcor reported:
| Financial Metric | 2024 | 2023 |
|---|---|---|
| Net Sales | $3,353 million | $3,443 million |
| Operating Income | $312 million | $270 million |
| Net Income Attributable to Amcor plc | $191 million | $152 million |
| Diluted Earnings Per Share | $0.132 | $0.105 |
| Gross Profit | $659 million | $645 million |
Net sales decreased by $90 million, or 3%, primarily due to unfavorable price/mix impacts and currency fluctuations. However, net income attributable to Amcor increased by $39 million, or 26%, driven by higher gross profits and reduced restructuring expenses.
Segment Performance
Amcor's operations are divided into two main segments: Flexibles and Rigid Packaging. The performance for the three months ended September 30, 2024, is summarized below:
| Segment | Net Sales (2024) | Net Sales (2023) | Adjusted EBIT (2024) | Adjusted EBIT % of Net Sales (2024) |
|---|---|---|---|---|
| Flexibles | $2,552 million | $2,568 million | $329 million | 12.9% |
| Rigid Packaging | $801 million | $875 million | $62 million | 7.7% |
The Flexibles segment saw a slight decline in sales, while the Rigid Packaging segment experienced a more significant drop, primarily due to lower sales volumes.
Restructuring Initiatives
Amcor has undertaken a restructuring plan following the sale of its Russian business in December 2022. The company expects to invest $110 million to $130 million from the sale proceeds into various cost-saving initiatives. As of September 30, 2024, the restructuring plan has incurred costs totaling approximately $220 million.
Debt and Liquidity Position
As of September 30, 2024, Amcor reported a net debt of $6.9 billion, up from $6.1 billion as of June 30, 2024. The company maintains substantial liquidity, with undrawn credit facilities totaling $1.9 billion.
Overall, Amcor's financial health reflects a combination of strategic management of costs, ongoing restructuring efforts, and a focus on sustainability, positioning the company for continued success in the packaging industry.
A Who Owns Amcor plc (AMCR)
Shareholder Composition
As of 2024, Amcor plc (AMCR) has a diverse shareholder base, which includes institutional investors, mutual funds, and retail investors. The following table summarizes the major shareholders and their respective ownership percentages:
| Shareholder Type | Shareholder Name | Ownership Percentage |
|---|---|---|
| Institutional Investor | The Vanguard Group, Inc. | 8.5% |
| Institutional Investor | BlackRock, Inc. | 7.2% |
| Institutional Investor | State Street Corporation | 5.4% |
| Mutual Fund | American Funds | 4.1% |
| Retail Investor | Various | 75.8% |
Top Institutional Holders
The following table lists the top institutional holders of Amcor plc as of 2024, detailing the number of shares held and their percentage of total shares outstanding:
| Institution | Shares Held (millions) | Percentage of Total Shares |
|---|---|---|
| The Vanguard Group, Inc. | 122.5 | 8.5% |
| BlackRock, Inc. | 102.3 | 7.2% |
| State Street Corporation | 76.8 | 5.4% |
| American Funds | 57.5 | 4.1% |
| Invesco Ltd. | 42.0 | 2.9% |
Recent Shareholder Changes
In 2024, Amcor plc experienced some significant changes in its shareholder structure, as several institutional investors increased their stakes:
- The Vanguard Group increased its holdings by 1.2%.
- BlackRock, Inc. reduced its position by 0.5%.
- State Street Corporation slightly increased its stake by 0.3%.
Management and Board Ownership
Management and board members hold a combined ownership of approximately 1.5% of Amcor plc, demonstrating alignment with shareholder interests. The following table provides details on key executives and their ownership:
| Name | Position | Shares Owned (millions) | Ownership Percentage |
|---|---|---|---|
| Ron Delia | CEO | 1.2 | 0.08% |
| Michael Zacka | President | 0.5 | 0.03% |
| Other Executives | - | 2.0 | 0.14% |
Market Capitalization and Stock Performance
As of the end of September 2024, Amcor plc has a market capitalization of approximately $20.1 billion. The stock has shown a year-to-date performance of approximately 5.0%, reflecting market conditions and company performance metrics.
Recent Financial Highlights
For the three months ended September 30, 2024, Amcor reported:
- Net sales of $3.353 billion.
- Net income of $191 million.
- Diluted earnings per share of $0.132.
These figures indicate a solid financial position, which may attract further investment from both institutional and retail investors.
Amcor plc (AMCR) Mission Statement
Company Overview
Amcor plc is a global leader in developing and producing responsible packaging solutions for various materials across multiple industries, including food, beverage, pharmaceutical, medical, home and personal care. As of 2024, the company operates in 40 countries with 212 locations, employing approximately 41,000 people and generating annual sales of $13.6 billion.
Mission Statement
Amcor's mission is to lead the global packaging industry in developing sustainable packaging solutions that protect products, differentiate brands, and improve supply chains. The company is committed to making packaging that is increasingly recyclable, reusable, lighter weight, and made using a growing proportion of recycled content.
Financial Performance
For the three months ended September 30, 2024, Amcor reported the following financial results:
| Financial Metrics | 2024 | 2023 |
|---|---|---|
| Net Sales ($ millions) | 3,353 | 3,443 |
| Operating Income ($ millions) | 312 | 270 |
| Net Income Attributable to Amcor plc ($ millions) | 191 | 152 |
| Diluted Earnings Per Share ($) | 0.132 | 0.105 |
| Gross Profit ($ millions) | 659 | 645 |
| Gross Profit Margin (%) | 19.7 | 18.7 |
Strategic Goals
- Innovation: Focus on developing new products and solutions that meet customer needs while enhancing sustainability.
- Efficiency: Implement cost-saving initiatives to improve operational efficiency and reduce waste.
- Customer Partnership: Collaborate closely with customers to deliver tailored packaging solutions that enhance brand value.
- Environmental Responsibility: Commit to reducing carbon emissions and improving resource efficiency across all operations.
Recent Developments
In light of recent economic conditions, Amcor has focused on aligning its cost base with market dynamics, implementing price and cost actions to offset inflation. The company has also initiated a restructuring plan to improve operational efficiency, with expected annualized pre-tax benefits of approximately $50 million by the end of fiscal year 2025.
Market Position
Amcor's strategic focus on sustainability positions it well within the packaging industry, where consumer demand for eco-friendly products is increasing. The company aims to enhance its market share by leading in innovative and responsible packaging solutions.
Segment Performance
For the three months ended September 30, 2024, Amcor's business segments reported the following net sales:
| Segment | Net Sales ($ millions) |
|---|---|
| Flexibles | 2,552 |
| Rigid Packaging | 801 |
Overall, Amcor's performance reflects its commitment to sustainability and innovation, with strategic initiatives aimed at enhancing operational efficiency and market responsiveness.
How Amcor plc (AMCR) Works
Company Overview
Amcor plc is a global leader in developing and producing responsible packaging solutions across a variety of materials used in food, beverage, pharmaceutical, medical, home and personal care, and other consumer goods. As of 2024, the company operates 212 locations in 40 countries and employs approximately 41,000 people, generating annual sales of $13.6 billion.
Financial Performance
For the three months ended September 30, 2024, Amcor reported:
| Metric | 2024 ($ in millions) | 2023 ($ in millions) |
|---|---|---|
| Net Sales | 3,353 | 3,443 |
| Operating Income | 312 | 270 |
| Net Income Attributable to Amcor plc | 191 | 152 |
| Diluted Earnings Per Share (EPS) | 0.132 | 0.105 |
| Gross Profit | 659 | 645 |
| Gross Profit Margin | 19.7% | 18.7% |
Segment Performance
Amcor's operations are divided into two key segments: Flexibles and Rigid Packaging. The performance for the three months ended September 30, 2024, is summarized below:
| Segment | Net Sales ($ in millions) | Adjusted EBIT ($ in millions) | Adjusted EBIT Margin |
|---|---|---|---|
| Flexibles | 2,552 | 329 | 12.9% |
| Rigid Packaging | 801 | 62 | 7.7% |
Geographic Distribution of Sales
Net sales by geography for the three months ended September 30, 2024:
| Region | Flexibles ($ in millions) | Rigid Packaging ($ in millions) | Total ($ in millions) |
|---|---|---|---|
| North America | 1,032 | 605 | 1,637 |
| Latin America | 271 | 196 | 467 |
| Europe | 838 | 0 | 838 |
| Asia Pacific | 411 | 0 | 411 |
Cost Structure
Amcor's consolidated operating expenses for the three months ended September 30, 2024, include:
| Expense Type | Amount ($ in millions) |
|---|---|
| Selling, General, and Administrative Expenses | (315) |
| Research and Development Expenses | (28) |
| Restructuring and Related Expenses | (6) |
| Other Income/(Expenses), Net | 2 |
Cash Flow Analysis
For the three months ended September 30, 2024, Amcor's cash flow performance was as follows:
| Cash Flow Activity | Amount ($ in millions) |
|---|---|
| Net Cash Used in Operating Activities | (269) |
| Net Cash Used in Investing Activities | (155) |
| Net Cash Provided by Financing Activities | 237 |
Debt and Liquidity
As of September 30, 2024, Amcor's net debt stood at $6.9 billion, compared to $6.1 billion as of June 30, 2024. The company had undrawn credit facilities of $1.9 billion available to fund working capital and capital expenditures.
Dividends and Share Repurchases
Amcor declared a cash dividend of $0.1250 per ordinary share during the three months ended September 30, 2024. The company did not repurchase any shares under its buyback program during this period.
How Amcor plc (AMCR) Makes Money
Overview of Amcor's Business Model
Amcor plc operates as a global leader in responsible packaging solutions. The company generates revenue primarily through two reportable segments: Flexibles and Rigid Packaging. As of fiscal year 2024, Amcor reported net sales of approximately $13.6 billion from operations across 212 locations in 40 countries.
Revenue Breakdown by Segment
For the three months ended September 30, 2024, Amcor's net sales totaled $3.353 billion, reflecting a decrease from $3.443 billion in the same period in 2023. The breakdown by segment is as follows:
| Segment | Net Sales (2024) | Net Sales (2023) | Adjusted EBIT (2024) | Adjusted EBIT (2023) |
|---|---|---|---|---|
| Flexibles | $2,552 million | $2,568 million | $329 million | $322 million |
| Rigid Packaging | $801 million | $875 million | $62 million | $62 million |
| Total | $3,353 million | $3,443 million | $365 million | $358 million |
Cost Structure
Amcor's cost of sales for the three months ended September 30, 2024, was $2.694 billion, down from $2.798 billion in 2023. This resulted in a gross profit of $659 million, which is a gross profit margin of 19.7% compared to 18.7% in the prior year.
Operating Income and Expenses
Operating income for the same quarter increased to $312 million from $270 million in 2023, representing an operating margin of 9.3%. Selling, general, and administrative expenses were $315 million, compared to $302 million the previous year, indicating a rise in operational costs.
Net Income and Earnings Per Share
Net income attributable to Amcor plc for the quarter was reported at $191 million, an increase from $152 million in the same quarter of the previous year. The diluted earnings per share rose to $0.132 from $0.105.
Geographic Revenue Distribution
Amcor's revenue is also geographically segmented. The following table outlines the net sales by geography for the three months ended September 30, 2024:
| Region | Flexibles (2024) | Rigid Packaging (2024) | Total (2024) | Total (2023) |
|---|---|---|---|---|
| North America | $1,032 million | $605 million | $1,637 million | $1,700 million |
| Latin America | $271 million | $196 million | $467 million | $484 million |
| Europe | $838 million | $0 million | $838 million | $858 million |
| Asia Pacific | $411 million | $0 million | $411 million | $401 million |
| Total | $2,552 million | $801 million | $3,353 million | $3,443 million |
Strategic Initiatives and Future Outlook
Amcor is focusing on cost-saving initiatives and structural changes to enhance profitability. The company has initiated a restructuring plan with expected costs of approximately $220 million and anticipates annualized pre-tax benefits of around $50 million by the end of fiscal year 2025.
Debt and Capital Structure
As of September 30, 2024, Amcor reported total debt of $7.304 billion with a net debt of $6.872 billion. The company had undrawn credit facilities available amounting to $1.9 billion.
Conclusion
Amcor's diversified product offerings in flexible and rigid packaging, along with strategic cost management, position the company for continued revenue generation and profitability in the evolving packaging market.
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Article updated on 8 Nov 2024
Resources:
- Amcor plc (AMCR) Financial Statements – Access the full quarterly financial statements for Q1 2025 to get an in-depth view of Amcor plc (AMCR)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Amcor plc (AMCR)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.