Cameron McDonald

Cameron McDonald asked whether the volume reductions in the core business or North American beverage were entirely organic, or if the company had experienced market share loss to other substrates, particularly in the North American beverage sector.

Answer

CEO Peter Konieczny (PK) stated that generally, it is not a story of market share loss. He identified one specific trend in North American beverage: a shift in multi-pack sales within big box stores towards aluminum bottles, driven by more attractive price points for value-seeking consumers. No other significant substrate shifts were observed.

Cameron McDonald questioned whether the volume performance in the core business and North American beverage was due to organic reductions or market share loss, particularly to other substrates in the North American beverage sector.

Answer

Peter Konieczny, CEO of Amcor, stated that generally, it is not a story of share loss. He acknowledged a specific trend in multi-pack sales in big box stores where aluminum bottles offer a more attractive price point, leading to some substrate shift due to consumers seeking value, but noted no other significant shifts.

Cameron McDonald asked for clarification on below-the-line integration costs, the Q4 outlook for these costs, and how they relate to the $280 million cost-to-achieve figure.

Answer

CFO Michael Casamento distinguished between two sets of costs: one-time transaction costs (e.g., legal, financing fees) estimated at $250M-$300M, and the separate $280M in cash costs required to achieve the synergies over three years. He clarified that the previously mentioned working capital benefit is expected to fund these costs to achieve, not be offset by them.

Cameron McDonald requested clarification on a $13 million restructuring adjustment, questioning if it was related to the company's exit from Russia.

Answer

CFO Michael Casamento confirmed the cost was part of the previously announced restructuring program designed to offset earnings lost from the disposal of the Russian business. He noted the program, which involved plant closures and restructures, is nearly complete and on track to deliver its targeted annualized benefits, with some already realized in FY24 and more in Q1 FY25.