Jeff Zajkowski

Jeff Zajkowski asked about the geographical distribution of raw material cost savings (US vs. Europe) and requested the total volume decline for global rigid packaging, inclusive of the non-core North American beverage business.

Answer

CFO Michael Casamento clarified that procurement savings were 'pretty general across the board' rather than concentrated in specific regions. CEO Peter Konieczny (PK) stated that rigid packaging volumes, inclusive of the non-core North American beverage business, were down 2.5%.

Jeff Zajkowski inquired about the geographical distribution of raw material cost savings (US vs. Europe) and asked for the rigid packaging volume decline inclusive of the non-core North American beverage business, given it was 1% down excluding it.

Answer

Michael Casamento, CFO of Amcor, clarified that of the $33 million in EBIT synergies, about two-thirds came from G&A (due to 450 headcount reductions) and one-third from procurement, which was generally spread across the board. Peter Konieczny, CEO of Amcor, stated that rigid packaging volumes were down 2.5% inclusive of the non-core North American beverage business.

Jeff Zajkowski from JPMorgan Chase & Co. inquired about the financial impact of helium and rare gas price pressure, asking if the estimated $50 million year-over-year penalty and 1.5% to 2.5% EPS growth trimming was accurate.

Answer

CEO Sanjiv Lamba confirmed that APAC pricing, excluding helium and rare gases, was positive, noting China's deflationary environment. CFO Matt White broadly agreed with the math, stating that the combined volume and pricing impact from helium and rare gases could be a 1% to 2% impact on EPS year-on-year, likely at the lower end of that range, with APAC being most affected. He also mentioned some stabilization in rare gas pricing but uncertainty regarding Russian helium supply.

Jeff Zajkowski inquired about the financial impact of helium and rare gases, specifically asking if a $50 million year-over-year penalty was trimming EPS growth by 1.5%-2.5%.

Answer

Sanjiv Lamba, CEO, confirmed that APAC pricing, excluding helium and rare gases, was positive, noting deflation in China. Matt White, CFO, generally agreed with the math, stating that for the full year, the combined volume and pricing impact from helium and rare gases could be a 1%-2% drag on EPS (lower end of the range), with APAC being most affected. He noted some stabilization in rare gas pricing, but helium's outlook depends on Russian supply.