The Amcor CDI (ASX: AMC) share price is in focus today as the global packaging leader reported net sales up 77% to US$5.91 billion for the March quarter, driven by the Berry acquisition, and an 87% jump in adjusted EBITDA to US$892 million.
Image source: Getty Images
What did Amcor preport?
- Net sales of US$5,914 million for the March quarter, up 77% year-on-year
- GAAP net income of US$278 million and diluted EPS of US$0.60
- Adjusted EBITDA up 87% to US$892 million; adjusted EBIT up 79% to US$687 million
- Quarterly dividend lifted to 65.0 US cents per share (91.0 Australian cents for ASX CDIs)
- Acquisition synergies of US$77 million realised during the quarter
- Year-to-date adjusted EPS climbed 11% to US$2.79
What else do investors need to know?
The standout increase in Amcor's sales and earnings stems from the completed acquisition of Berry Global, marking the first full fiscal year since integration. Both the Flexible and Rigid Packaging divisions delivered strong gains thanks to synergy benefits and productivity initiatives, though overall volumes were about 1.5% lower versus combined legacy businesses.
The company's previously announced portfolio optimisation is progressing, with six divestiture agreements reached so far this year. Cash flow remained steady, with a free cash outflow of US$39 million for the quarter after absorbing around US$78 million in one-off transaction and integration costs.
The board's confidence in long-term growth is underlined by a higher quarterly dividend, up from the prior year even as inventory levels remain elevated to secure customer needs amid ongoing geopolitical uncertainty.
What did Amcor management say?
Amcor CEO Peter Konieczny commented:
Third quarter results were in line with expectations and reflect the resilience of our business as we mark the first anniversary of bringing legacy Amcor and Berry together as One Amcor. Over the past year, we have executed a smooth integration, built a strong leadership structure, and made meaningful progress on synergy delivery and portfolio optimization. While we continue to operate in a challenging market environment, our global scale, diversified portfolio, and strong customer and supplier partnerships position us well. We remain focused on what we can control—ensuring reliable supply, managing costs and pricing responsibly to offset inflation, and supporting our customers. With clear visibility to additional synergy benefits and a proven ability to navigate volatility, we are confident in our outlook and the continued strength of our business.
What's next for Amcor?
Looking ahead, Amcor expects full-year adjusted EPS of US$3.98 to US$4.03, representing around 12% growth at the midpoint, and free cash flow between US$1.5 and US$1.6 billion. This outlook includes full-year benefits from the Berry integration and reflects the company's efforts to maintain service levels in the face of supply chain disruptions and Middle East conflict impacts.
Management will continue pursuing portfolio optimisation, cost synergies and productivity gains, though actual results could vary given ongoing geopolitical uncertainties. Investors can expect further clarity on progress at the next scheduled update.
Amcor share price snapshot
Over the past 12 months, Amcor shares have declined 26%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 8% over the sme period.
