The Amcor PLC (ASX: AMC) share price is in focus after the packaging giant posted a 68% rise in quarterly net sales to US$5.45 billion, thanks largely to the Berry acquisition. Adjusted EBITDA soared 83% from last year, reaching US$826 million.
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What did Amcor report?
- Second quarter net sales of US$5,449 million, up 68% year-on-year
- Adjusted EBITDA of US$826 million, up 83% from a year ago
- Adjusted EBIT at US$603 million, a 66% increase
- Adjusted EPS of US$0.86, up 7%
- Free cash flow of US$289 million, after acquisition and restructuring costs of US$69 million
- Quarterly dividend declared at US$0.65 per share or 93.0 Australian cents unfranked for ASX investors
What else do investors need to know?
Amcor's huge jump in sales and earnings comes off the back of its recent US$6.4 billion Berry Global acquisition, which added around US$2.2 billion in quarterly sales and delivered US$55 million in synergy benefits. Despite the integration costs, management reaffirmed full-year guidance, expecting adjusted EPS between US$4.00–$4.15, which would be 12%–17% growth on a constant currency basis.
The flexible and rigid packaging segments both saw significant improvement in margins and profit, even as underlying volumes were a touch softer. The board's confidence is underlined by an increase in the quarterly dividend. Net debt rose to US$14.1 billion, reflecting acquisition funding, but cash flow is positive after accounting for integration costs.
What did Amcor management say?
Amcor CEO Peter Konieczny said:
Our Q2 financial performance was in line with expectations in a challenging volume environment. Strong Adjusted EPS growth was driven by disciplined execution and synergy benefits from the Berry acquisition at the upper end of expectations. Performance through the first half of the year supports our confidence in reaffirming fiscal 2026 earnings and free cash flow guidance. Portfolio optimization actions are progressing well, positioning us to be the global leader in consumer packaging and dispensing solutions for nutrition, health, beauty and wellness.
What's next for Amcor?
Looking ahead, Amcor expects a full year of Berry Global contributions to support double-digit EPS growth and strong cash flow. The company is continuing with portfolio optimisation, targeting non-core divestments and efficiency gains from its expanded footprint.
Investors can expect management to focus on delivering US$260 million or more in annual synergies from the Berry deal. The team is also eyeing further initiatives to strengthen Amcor's position as a global packaging leader.
Amcor share price snapshot
Over the past 12 months, Amcor shares have declined 20%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 6% over the same period.
