Amcor reports fiscal 2023 results and provides outlook for fiscal 2024
- Adjusted EPS of 73.3 cps and Adjusted Free Cash Flow of $848 million in line with guidance provided in May
- Strong total cash returns to shareholders of $1.2 billion: annual dividend increased to 49.0 cents per share; $431 million of shares repurchased (approximately 3% of outstanding shares)
- Expectation of a return to solid earnings growth in the second half of fiscal 2024 and long-term growth at high-single digit rates
- Pricing to compensate for inflation and benefits from cost reduction and productivity initiatives will have a favorable and sustainable impact on operating leverage
- Demand softened considerably and customer destocking persisted through the last two quarters of fiscal 2023
- Headwinds from the sale of Russian plants and higher interest expense
June 2023 quarter:
GAAP diluted EPS of 12.3 cps; Adjusted EPS of 19.3 cps
Fiscal 2023 Full Year Highlights
- Net sales of
, in line with the prior year on a comparable constant currency basis;$14,694 million - GAAP Net Income of
; GAAP diluted earnings per share (EPS) of 70.5 cps;$1,048 million - Adjusted EPS of 73.3 cps and Adjusted Free Cash Flow of
, in line with guidance provided in May. Adjusted EBIT of$848 million ;$1,608 million - Strong total cash returns to shareholders of
billion: annual dividend increased to$1.2 49.0 cents per share; of shares repurchased (approximately$431 million 3% of outstanding shares); and - Fiscal 2024 outlook: Adjusted EPS of
67-71 cents per share. Adjusted Free Cash Flow of .$850 -950 million
Amcor CEO Ron Delia said: "Throughout fiscal 2023, our teams did an excellent job proactively recovering inflation and reducing costs in a highly challenging environment. Adjusted EBIT grew modestly in comparable constant currency terms and we returned While we expect current market conditions to continue in the near-term, we have visibility to a number of controllable factors we believe will support a return to solid earnings growth in the second half of fiscal 2024 and leave us well placed to grow at our long term trend of high-single digit rates thereafter. We are pricing to compensate for inflation and we expect benefits from our cost reduction and productivity initiatives will have a favorable and sustainable impact on operating leverage. In addition, we expect the headwinds from the sale of our Russian plants and higher interest expense will be largely limited to the first half. We remain focused on our long-term growth strategy and will continue to pursue opportunities to invest in the business, particularly through innovation and sustainability initiatives in faster growing, higher value markets. We will also continue pursuing value-creating M&A and returning cash to shareholders through share repurchases and a compelling and growing dividend." |
Key Financials(1) | ||||||||
Twelve Months Ended June 30, | ||||||||
GAAP results | 2022 $ million | 2023 $ million | ||||||
Net sales | 14,544 | 14,694 | ||||||
Net income | 805 | 1,048 | ||||||
EPS (diluted US cents) | 52.9 | 70.5 | ||||||
Twelve Months Ended June 30, | Reported ∆% | Comparable currency ∆% | ||||||
Adjusted non-GAAP results | 2022 $ million | 2023 $ million | ||||||
Net sales | 14,544 | 14,694 | 1 | — | ||||
EBITDA | 2,117 | 2,018 | (5) | 1 | ||||
EBIT | 1,701 | 1,608 | (5) | 1 | ||||
Net income | 1,224 | 1,089 | (11) | (4) | ||||
EPS (diluted US cents) | 80.5 | 73.3 | (9) | (2) | ||||
Free Cash Flow | 1,066 | 848 |
(1) Adjusted non-GAAP results exclude items which are not considered representative of ongoing operations. Comparable constant currency ∆% excludes the impact of movements in foreign exchange rates and items affecting comparability. Further details related to non-GAAP measures and reconciliations to GAAP measures can be found under "Presentation of non-GAAP information" in this release. |
Note: All amounts referenced throughout this document are in US dollars unless otherwise indicated and numbers may not add up precisely to the totals provided due to rounding. |
Cash Returns to Shareholders
Amcor generates significant annual cash flow, maintains strong credit metrics, and is committed to an investment grade credit rating. The Company's strong annual cash flow and balance sheet provide substantial capacity to reinvest in the business for organic growth, pursue acquisitions, and return cash to shareholders through a compelling and growing dividend as well as regular share repurchases.
During fiscal 2023, the Company returned approximately
Dividend
The Amcor Board of Directors today declared a quarterly cash dividend of
The ex-dividend date will be September 6, 2023, the record date will be September 7, 2023, and the payment date will be September 27, 2023.
Share repurchases
Amcor repurchased approximately 41 million shares (approximately
Amcor expects to allocate approximately
2023 financial results
Segment Information
Twelve Months Ended June 30, 2022 | Twelve Months Ended June 30, 2023 | |||||||
Adjusted non-GAAP results | Net sales $ million | EBIT $ million | EBIT / | EBIT / Average | Net sales $ million | EBIT $ million | EBIT / | EBIT / Average |
Flexibles | 11,151 | 1,517 | 13.6 | 11,154 | 1,429 | 12.8 | ||
Rigid Packaging | 3,393 | 289 | 8.5 | 3,540 | 265 | 7.5 | ||
Other(2) | — | (105) | — | (86) | ||||
Total Amcor | 14,544 | 1,701 | 11.7 | 16.3 | 14,694 | 1,608 | 10.9 | 15.4 |
(1) Return on average funds employed includes shareholders' equity and net debt, calculated using a four quarter average and Last Twelve Months adjusted EBIT. |
(2) Represents corporate expenses. |
Twelve months ended June 30, 2023
Net sales for the Amcor Group increased by
Net sales on a comparable constant currency basis were in line with the prior year, largely reflecting price/mix benefits of approximately
GAAP Net Income was
June 2023 quarter
Net sales for the Amcor Group of
Net sales on a comparable constant currency basis were approximately
GAAP Net Income was
Flexibles | Twelve Months Ended June 30, | Reported | Comparable currency ∆% | |||||
2022 $ million | 2023 $ million | |||||||
Net sales | 11,151 | 11,154 | — | 1 | ||||
Adjusted EBIT | 1,517 | 1,429 | (6) | 1 | ||||
Adjusted EBIT / Sales % | 13.6 | 12.8 |
Twelve months ended June 30, 2023
Net sales of
In
In
Net sales were in line with the prior year across the
Adjusted EBIT of
Adjusted EBIT margin of
June 2023 quarter
Net sales of
Volume weakness was broad based with high single digit declines across the European and North American markets, and a mid single digit decline in Latin America. The volume decline in these regions reflects soft consumer demand as well as customer destocking. In Asia, overall volumes were in line with the same quarter last year.
Adjusted EBIT of
Rigid Packaging | Twelve Months Ended June 30, | Reported | Comparable currency ∆% | |||||
2022 $ million | 2023 $ million | |||||||
Net sales | 3,393 | 3,540 | 4 | (3) | ||||
Adjusted EBIT | 289 | 265 | (8) | (7) | ||||
Adjusted EBIT / Sales % | 8.5 | 7.5 |
Twelve months ended June 30, 2023
Net sales of
In
In
Adjusted EBIT of
Adjusted EBIT margin of
June 2023 quarter
Net sales of
In
Adjusted EBIT of
Net interest and income tax expense
For the year ended June 30, 2023, net interest expense of
Adjusted Free Cash Flow
Adjusted Free Cash Flow for fiscal 2023 was
Net debt was
Fiscal 2024 Guidance
For the twelve-month period ending June 30, 2024, the Company expects:
- Adjusted EPS of 67 to
71 cents per share which includes: - Comparable constant currency earnings which includes underlying business performance down low single digit % to up low single digit %, a benefit of approximately
2% from share repurchases, and a negative impact of approximately6% related to higher estimated net interest and tax expense; - A negative impact of approximately
3% related to the sale of the Company's three plants inRussia on December 23, 2022; and - A benefit of approximately
2% related to currency translation, assuming current rates prevail through the balance of fiscal 2024. - The Company expects adjusted EPS on a reported basis in the first half of fiscal 2024 to be down in the mid-teens % compared with the first half of fiscal 2023, primarily due to lower volumes and the residual headwinds related to the sale of the
Russia plants and higher interest expense. In the second half of fiscal 2024, adjusted EPS is expected to be up mid-single digits % compared with the second half of fiscal 2023, benefiting in-part from structural cost saving initiatives and increased earnings leverage resulting from price and cost actions taken in fiscal 2023 and 2024. - Adjusted Free Cash Flow of approximately
to$850 million , representing solid growth over fiscal 2023.$950 million - Approximately
of cash to be allocated towards share repurchases as part of the program previously announced in fiscal 2023.$70 million
Amcor's guidance contemplates a range of factors which create a degree of uncertainty and additional complexity when estimating future financial results. Further information can be found under 'Cautionary Statement Regarding Forward-Looking Statements' in this release.
Conference Call
Amcor is hosting a conference call with investors and analysts to discuss these results on Wednesday August 16, 2023 at 5:30pm US Eastern Daylight Time / Thursday August 17, 2023 at 7:30am Australian Eastern Standard Time. Investors are invited to listen to a live webcast of the conference call at our website, www.amcor.com, in the "Investors" section.
Those wishing to access the call should use the following toll-free numbers, with the Conference ID : 8080870
- US &
Canada – 888 440 4149 (toll free), 646 960 0661 (local) Australia – 1800 519 630 (toll free), 02 9133 7103 (local)United Kingdom – 0800 358 0970 (toll free), 020 3433 3846 (local)Singapore – +65 3159 5133 (local number)Hong Kong – +852 3002 3410 (local number)
From all other countries, the call can be accessed by dialing +1 646 960 0661 (toll).
A replay of the webcast will also be available on www.amcor.com following the call.
About Amcor
Amcor is a global leader in developing and producing responsible packaging solutions for food, beverage, pharmaceutical, medical, home and personal-care, and other products. Amcor works with leading companies around the world to protect their products, differentiate brands, and improve supply chains through a range of flexible and rigid packaging, specialty cartons, closures and services. The company is focused on making packaging that is increasingly light-weighted, recyclable and reusable, and made using an increasing amount of recycled content. In fiscal year 2023, 41,000 Amcor people generated
www.amcor.comI LinkedIn I Facebook I Twitter I YouTube
Amcor plc
Registered Office: 3rd Floor, 44 Esplanade, St Helier, JE4 9WG, Jersey
Jersey Registered Company Number: 126984, Australian Registered Body Number (ARBN): 630 385 278
Cautionary Statement Regarding Forward-Looking Statements
This document contains certain statements that are "forward-looking statements" within the meaning of the safe harbor provisions of the
Presentation of non-GAAP information
Included in this release are measures of financial performance that are not calculated in accordance with
- material restructuring programs, including associated costs such as employee severance, pension and related benefits, impairment of property and equipment and other assets, accelerated depreciation, termination payments for contracts and leases, contractual obligations, and any other qualifying costs related to restructuring plans;
- material sales and earnings from disposed or ceased operations and any associated profit or loss on sale of businesses or subsidiaries;
- changes in the fair value of economic hedging instruments on commercial paper;
- significant pension settlements;
- impairments in goodwill and equity method investments;
- material acquisition compensation and transaction costs such as due diligence expenses, professional and legal fees, and integration costs;
- material purchase accounting adjustments for inventory;
- amortization of acquired intangible assets from business combination;
- gains or losses on significant property and divestitures and significant property and other impairments, net of insurance recovery;
- certain regulatory and legal matters;
- impacts from hyperinflation accounting; and
- impacts related to the
Russia -Ukraine conflict.
Amcor also evaluates performance on a comparable constant currency basis, which measures financial results assuming constant foreign currency exchange rates used for translation based on the average rates in effect for the comparable prior year period. In order to compute comparable constant currency results, we multiply or divide, as appropriate, current-year
Management has used and uses these measures internally for planning, forecasting and evaluating the performance of the Company's reporting segments and certain of the measures are used as a component of Amcor's Board of Directors' measurement of Amcor's performance for incentive compensation purposes. Amcor believes that these non-GAAP measures are useful to enable investors to perform comparisons of current and historical performance of the Company. For each of these non-GAAP financial measures, a reconciliation to the most directly comparable
Dividends
Amcor has received a waiver from the ASX's settlement operating rules, which will allow the Company to defer processing conversions between its ordinary share and CDI registers from September 6, 2023 to September 7, 2023 inclusive.
Three Months Ended June 30, | Twelve Months Ended June 30, | ||||||
($ million, except per share amounts) | 2022 | 2023 | 2022 | 2023 | |||
Net sales | 3,909 | 3,673 | 14,544 | 14,694 | |||
Cost of sales | (3,115) | (2,951) | (11,724) | (11,969) | |||
Gross profit | 794 | 722 | 2,820 | 2,725 | |||
Selling, general, and administrative expenses | (342) | (329) | (1,284) | (1,246) | |||
Research and development expenses | (24) | (25) | (96) | (101) | |||
Restructuring, impairment and other related activities, net | (207) | (59) | (234) | 104 | |||
Other income, net | 31 | 16 | 33 | 26 | |||
Operating income | 252 | 325 | 1,239 | 1,508 | |||
Interest expense, net | (35) | (70) | (135) | (259) | |||
Other non-operating income/(expense), net | (1) | (3) | 11 | 2 | |||
Income before income taxes | 216 | 252 | 1,115 | 1,251 | |||
Income tax expense | (104) | (68) | (300) | (193) | |||
Net income | 112 | 184 | 815 | 1,058 | |||
Net income attributable to non-controlling interests | (3) | (4) | (10) | (10) | |||
Net income attributable to Amcor plc | 109 | 181 | 805 | 1,048 | |||
USD:EUR average FX rate | 0.9391 | 0.9185 | 0.8881 | 0.9561 | |||
Basic earnings per share attributable to Amcor | 0.074 | 0.124 | 0.532 | 0.709 | |||
Diluted earnings per share attributable to Amcor | 0.073 | 0.123 | 0.529 | 0.705 | |||
Weighted average number of shares outstanding – Basic | 1,487 | 1,452 | 1,509 | 1,468 | |||
Weighted average number of shares outstanding – Diluted | 1,499 | 1,456 | 1,516 | 1,476 |
Twelve Months Ended June 30, | |||||
($ million) | 2022 | 2023 | |||
Net income | 815 | 1,058 | |||
Depreciation, amortization, and impairment | 625 | 586 | |||
138 | — | ||||
Net gain on disposal of businesses and investments | — | (220) | |||
Changes in operating assets and liabilities, excluding effect of acquisitions, divestitures, and currency | (207) | (265) | |||
Other non-cash items | 155 | 102 | |||
Net cash provided by operating activities | 1,526 | 1,261 | |||
Purchase of property, plant, and equipment and other intangible assets | (527) | (526) | |||
Proceeds from sales of property, plant, and equipment and other intangible assets | 18 | 30 | |||
Business acquisitions and Investments in affiliated companies, and other | (12) | (177) | |||
Proceeds/(payments) from divestitures | (1) | 365 | |||
Net debt proceeds | 476 | 228 | |||
Dividends paid | (732) | (723) | |||
Share buy-back/cancellations | (601) | (432) | |||
Treasury shares purchases, net | (29) | (87) | |||
Cash and cash equivalents classified as held for sale | (75) | — | |||
Other, including effects of exchange rate on cash and cash equivalents | (118) | (100) | |||
Net decrease in cash and cash equivalents | (75) | (161) | |||
Cash and cash equivalents at the beginning of the year(1) | 850 | 850 | |||
Cash and cash equivalents at the end of the period | 775 | 689 |
(1) Cash and cash equivalents at the beginning of fiscal 2023 includes |
($ million) | June 30, 2022 | June 30, 2023 | ||
Cash and cash equivalents | 775 | 689 | ||
Trade receivables, net | 1,935 | 1,875 | ||
Inventories, net | 2,439 | 2,213 | ||
Property, plant and equipment, net | 3,646 | 3,762 | ||
Goodwill and other intangible assets, net | 6,942 | 6,890 | ||
Other assets | 1,689 | 1,574 | ||
Total assets | 17,426 | 17,003 | ||
Trade payables | 3,073 | 2,690 | ||
Short-term debt and current portion of long-term debt | 150 | 93 | ||
Long-term debt, less current portion | 6,340 | 6,653 | ||
Accruals and other liabilities | 3,722 | 3,477 | ||
Shareholders' equity | 4,141 | 4,090 | ||
Total liabilities and shareholders' equity | 17,426 | 17,003 |
Components of Fiscal 2023 Net Sales growth | |||||||
Three Months Ended June 30 | Twelve Months Ended June 30 | ||||||
($ million) | Flexibles | Rigid | Total | Flexibles | Rigid | Total | |
Net sales fiscal year 2023 | 2,777 | 897 | 3,673 | 11,154 | 3,540 | 14,694 | |
Net sales fiscal year 2022 | 2,967 | 942 | 3,909 | 11,151 | 3,393 | 14,544 | |
Reported Growth % | (6) | (5) | (6) | — | 4 | 1 | |
FX % | 1 | (1) | — | (4) | (1) | (3) | |
Constant Currency Growth % | (7) | (4) | (6) | 4 | 5 | 4 | |
Raw Material Pass Through % | 1 | — | 1 | 5 | 8 | 5 | |
Items affecting comparability % | (3) | — | (2) | (2) | — | (1) | |
Comparable Constant Currency Growth % | (5) | (4) | (5) | 1 | (3) | — | |
Volume % | (7) | (6) | (7) | (3) | (4) | (3) | |
Price/Mix % | 2 | 2 | 2 | 4 | 1 | 3 |
Reconciliation of Non-GAAP Measures
Reconciliation of adjusted Earnings before interest, tax, depreciation and amortization (EBITDA), Earnings before interest and tax (EBIT), Net income, Earnings per share (EPS) and Free Cash Flow
Three Months Ended June 30, 2022 | Three Months Ended June 30, 2023 | |||||||||||||||
($ million) | EBITDA | EBIT | Net | EPS US | EBITDA | EBIT | Net | EPS | ||||||||
Net income attributable to Amcor | 109 | 109 | 109 | 7.3 | 181 | 181 | 181 | 12.3 | ||||||||
Net income attributable to non-controlling interests | 3 | 3 | 4 | 4 | ||||||||||||
Tax expense | 103 | 103 | 68 | 68 | ||||||||||||
Interest expense, net | 35 | 35 | 70 | 70 | ||||||||||||
Depreciation and amortization | 145 | 144 | ||||||||||||||
EBITDA, EBIT, Net income and EPS | 395 | 250 | 109 | 7.3 | 467 | 323 | 181 | 12.3 | ||||||||
2019 Bemis Integration Plan | 11 | 11 | 11 | 0.7 | — | — | — | — | ||||||||
Net loss on disposals | 1 | 1 | 1 | — | — | — | — | — | ||||||||
Impact of hyperinflation | 6 | 6 | 6 | 0.4 | 5 | 5 | 5 | 0.4 | ||||||||
Property and other (gains)/losses, net(2) | (10) | (10) | (10) | (0.6) | 2 | 2 | 2 | 0.1 | ||||||||
200 | 200 | 200 | 13.3 | 66 | 66 | 66 | 4.5 | |||||||||
Pension settlements | 5 | 5 | 5 | 0.3 | 5 | 5 | 5 | 0.3 | ||||||||
Other | — | — | — | — | — | (5) | (5) | (5) | (0.4) | |||||||
Amortization of acquired intangibles(4) | 42 | 42 | 2.7 | 40 | 40 | 2.9 | ||||||||||
Tax effect of above items | 4 | 0.3 | (12) | (0.8) | ||||||||||||
Adjusted EBITDA, EBIT, Net income, and EPS | 609 | 505 | 368 | 24.4 | 540 | 436 | 282 | 19.3 | ||||||||
Reconciliation of adjusted growth to comparable constant currency growth | ||||||||||||||||
% growth - Adjusted EBITDA, EBIT, Net income and EPS | (11) | (14) | (23) | (21) | ||||||||||||
% items affecting comparability(5) | 5 | 6 | 7 | 7 | ||||||||||||
% currency impact | — | 1 | — | — | ||||||||||||
% comparable constant currency growth | (6) | (7) | (16) | (14) | ||||||||||||
Adjusted EBITDA | 609 | 540 | ||||||||||||||
Interest paid, net | (47) | (79) | ||||||||||||||
Income tax paid | (93) | (95) | ||||||||||||||
Purchase of property, plant and equipment and | (154) | (144) | ||||||||||||||
Proceeds from sales of property, plant and | 11 | 18 | ||||||||||||||
Movement in working capital | 493 | 572 | ||||||||||||||
Other | (16) | 22 | ||||||||||||||
Adjusted Free Cash Flow | 803 | 834 |
(1) Calculation of diluted EPS for the three months ended June 30, 2023 excludes net income attributable to shares to be repurchased under forward contracts of |
(2) Property and other (gains)/losses, net for the three months ended June 30, 2023 includes property claims and losses, net of insurance recovery related to the closure of our business in |
(3) Includes incremental restructuring and other costs attributable to group wide initiatives to offset divested earnings from the Russian business. The three months ended June 30, 2022 include impairment charges and restructuring and related expenses. |
(4) Amortization of acquired intangible assets from business combinations. |
(5) Reflects the impact of acquired, disposed, and ceased operations. |
Twelve Months Ended June 30, 2022 | Twelve Months Ended June 30, 2023 | |||||||||||||||
($ million) | EBITDA | EBIT | Net | EPS US | EBITDA | EBIT | Net | EPS | ||||||||
Net income attributable to Amcor | 805 | 805 | 805 | 52.9 | 1,048 | 1,048 | 1,048 | 70.5 | ||||||||
Net income attributable to non-controlling interests | 10 | 10 | 10 | 10 | ||||||||||||
Tax expense | 300 | 300 | 193 | 193 | ||||||||||||
Interest expense, net | 135 | 135 | 259 | 259 | ||||||||||||
Depreciation and amortization | 579 | 569 | ||||||||||||||
EBITDA, EBIT, Net income and EPS | 1,829 | 1,250 | 805 | 52.9 | 2,080 | 1,510 | 1,048 | 70.5 | ||||||||
2019 Bemis Integration Plan | 37 | 37 | 37 | 2.5 | — | — | — | — | ||||||||
Net loss on disposals(2) | 10 | 10 | 10 | 0.7 | — | — | — | — | ||||||||
Impact of hyperinflation | 16 | 16 | 16 | 1.0 | 24 | 24 | 24 | 1.9 | ||||||||
Property and other losses, net(3) | 13 | 13 | 13 | 0.8 | 2 | 2 | 2 | 0.1 | ||||||||
200 | 200 | 200 | 13.2 | (90) | (90) | (90) | (6.0) | |||||||||
Pension settlements | 8 | 8 | 8 | 0.5 | 5 | 5 | 5 | 0.3 | ||||||||
Other | 4 | 4 | 4 | 0.3 | (3) | (3) | (3) | (0.3) | ||||||||
Amortization of acquired intangibles (5) | 163 | 163 | 10.7 | 160 | 160 | 10.8 | ||||||||||
Tax effect of above items | (32) | (2.1) | (57) | (4.0) | ||||||||||||
Adjusted EBITDA, EBIT, Net income and EPS | 2,117 | 1,701 | 1,224 | 80.5 | 2,018 | 1,608 | 1,089 | 73.3 | ||||||||
Reconciliation of adjusted growth to comparable constant currency growth | ||||||||||||||||
% growth - Adjusted EBITDA, EBIT, Net income, and EPS | (5) | (5) | (11) | (9) | ||||||||||||
% items affecting comparability(6) | 3 | 4 | 4 | 4 | ||||||||||||
% currency impact | 3 | 2 | 3 | 3 | ||||||||||||
% comparable constant currency growth | 1 | 1 | (4) | (2) | ||||||||||||
Adjusted EBITDA | 2,117 | 2,018 | ||||||||||||||
Interest paid, net | (119) | (248) | ||||||||||||||
Income tax paid | (256) | (225) | ||||||||||||||
Purchase of property, plant and equipment and | (527) | (526) | ||||||||||||||
Proceeds from sales of property, plant and | 18 | 30 | ||||||||||||||
Movement in working capital | (154) | (229) | ||||||||||||||
Other | (13) | 28 | ||||||||||||||
Adjusted Free Cash Flow | 1,066 | 848 |
(1) Calculation of diluted EPS for the twelve months ended June 30, 2023 excludes net income attributable to shares to be repurchased under forward contracts of |
(2) Includes losses on disposal of non-core businesses in fiscal year 2022. |
(3) Property and other losses, net for fiscal year 2023 includes property claims and losses, net of insurance recovery related to the closure of our business in |
(4) Includes the net gain on disposal of the Russian business in December 2022 and incremental restructuring and other costs attributable to group wide initiatives to offset divested earnings from the Russian business. Fiscal year 2022 includes impairment charges and restructuring and related expenses. |
(5) Amortization of acquired intangible assets from business combinations. |
(6) Reflects the impact of acquired, disposed, and ceased operations. |
Reconciliation of adjusted EBIT by reporting segment
Three Months Ended June 30, 2022 | Three Months Ended June 30, 2023 | |||||||||||||||
($ million) | Flexibles | Rigid | Other | Total | Flexibles | Rigid | Other | Total | ||||||||
Net income attributable to Amcor | 109 | 181 | ||||||||||||||
Net income attributable to non-controlling interests | 3 | 4 | ||||||||||||||
Tax expense | 103 | 68 | ||||||||||||||
Interest expense, net | 35 | 70 | ||||||||||||||
EBIT | 210 | 87 | (46) | 250 | 283 | 62 | (22) | 323 | ||||||||
2019 Bemis Integration Plan | 12 | — | (1) | 11 | — | — | — | — | ||||||||
Net loss on disposals | 1 | — | — | 1 | — | — | — | — | ||||||||
Impact of hyperinflation | — | 6 | — | 6 | — | 5 | — | 5 | ||||||||
Property and other (gains)/losses, net(1) | (14) | — | 4 | (10) | — | — | 2 | 2 | ||||||||
200 | — | — | 200 | 62 | 2 | 2 | 66 | |||||||||
Pension settlements | — | 1 | 4 | 5 | 3 | 2 | — | 5 | ||||||||
Other | — | — | — | — | — | 1 | (6) | (5) | ||||||||
Amortization of acquired intangibles(3) | 40 | 2 | — | 42 | 39 | 1 | — | 40 | ||||||||
Adjusted EBIT | 449 | 96 | (39) | 505 | 387 | 73 | (24) | 436 | ||||||||
Adjusted EBIT / sales % | 15.1 % | 10.1 % | 12.9 % | 13.9 % | 8.1 % | 11.9 % | ||||||||||
Reconciliation of adjusted growth to comparable constant currency growth | ||||||||||||||||
% growth - Adjusted EBIT | (14) | (24) | — | (14) | ||||||||||||
% items affecting comparability(4) | 7 | — | — | 6 | ||||||||||||
% currency impact | — | 1 | — | 1 | ||||||||||||
% comparable constant currency | (7) | (23) | — | (7) |
(1) Property and other (gains)/losses, net for the three months ended June 30, 2023 includes property claims and losses, net of insurance recovery related to the closure of our business in |
(2) Includes incremental restructuring and other costs attributable to group wide initiatives to offset divested earnings from the Russian business. The three months ended June 30, 2022 include impairment charges and restructuring and related expenses. |
(3) Amortization of acquired intangible assets from business combinations. |
(4) Reflects the impact of acquired, disposed, and ceased operations. |
Twelve Months Ended June 30, 2022 | Twelve Months Ended June 30, 2023 | |||||||||||||||
($ million) | Flexibles | Rigid | Other | Total | Flexibles | Rigid | Other | Total | ||||||||
Net income attributable to Amcor | 805 | 1,048 | ||||||||||||||
Net income attributable to non-controlling interests | 10 | 10 | ||||||||||||||
Tax expense | 300 | 193 | ||||||||||||||
Interest expense, net | 135 | 259 | ||||||||||||||
EBIT | 1,101 | 265 | (116) | 1,250 | 1,357 | 225 | (72) | 1,510 | ||||||||
2019 Bemis Integration Plan | 38 | — | (1) | 37 | — | — | — | — | ||||||||
Net loss on disposals(1) | 10 | — | — | 10 | — | — | — | — | ||||||||
Impact of hyperinflation | — | 16 | — | 16 | — | 24 | — | 24 | ||||||||
Property and other losses, net(2) | 9 | — | 4 | 13 | — | — | 2 | 2 | ||||||||
200 | — | — | 200 | (100) | 8 | 2 | (90) | |||||||||
Pension settlements | — | 3 | 5 | 8 | 3 | 2 | — | 5 | ||||||||
Other | 2 | — | 2 | 4 | 14 | 1 | (18) | (3) | ||||||||
Amortization of acquired intangibles (4) | 158 | 5 | — | 163 | 155 | 5 | — | 160 | ||||||||
Adjusted EBIT | 1,517 | 289 | (105) | 1,701 | 1,429 | 265 | (86) | 1,608 | ||||||||
Adjusted EBIT / sales % | 13.6 % | 8.5 % | 11.7 % | 12.8 % | 7.5 % | 10.9 % | ||||||||||
Reconciliation of adjusted growth to comparable constant currency growth | ||||||||||||||||
% growth - Adjusted EBIT | (6) | (8) | (5) | |||||||||||||
% items affecting comparability(5) | 4 | — | 4 | |||||||||||||
% currency impact | 3 | 1 | 2 | |||||||||||||
% comparable constant currency growth | 1 | (7) | 1 |
(1) Includes losses on disposal of non-core businesses in fiscal year 2022. |
(2) Property and other (gains)/losses, net for fiscal year 2023 includes property claims and losses, net of insurance recovery related to the closure of our business in |
(3) Includes the net gain on the sale of the Russian business and incremental restructuring and other costs attributable to group wide initiatives to offset divested earnings from the Russian business. Fiscal year 2022 includes impairment charges and restructuring and related expenses. |
(4) Amortization of acquired intangible assets from business combinations. |
(5) Reflects the impact of acquired, disposed, and ceased operations. |
Reconciliation of net debt
($ million) | June 30, 2022 | June 30, 2023 | ||
Cash and cash equivalents | (775) | (689) | ||
Short-term debt | 136 | 80 | ||
Current portion of long-term debt | 14 | 13 | ||
Long-term debt excluding current portion | 6,340 | 6,653 | ||
Net debt | 5,715 | 6,057 |
View original content:https://www.prnewswire.com/news-releases/amcor-reports-fiscal-2023-results-and-provides-outlook-for-fiscal-2024-301902011.html
SOURCE Amcor
FAQ
What were the fiscal 2023 full year highlights for Amcor?
What is Amcor's outlook for fiscal 2024?
How does Amcor plan to address inflation and cost reduction?
What were the cash returns to shareholders in fiscal 2023?
What were the challenges faced by Amcor in fiscal 2023?