Sam Cielo's questions to Amcor PLC (AMCR) leadership • Q1 2025
Question
An analyst from Citi asked about the increase in net debt leverage to 3.5x and sought an explanation for the working capital drag and the outlook for cash conversion.
Answer
CFO Michael Casamento stated that the 3.0x leverage level is the peak and was slightly inflated by a temporary FX rate spike (0.1x impact) and a deliberate build in raw material inventory to meet strong demand and mitigate supply chain risks. He reaffirmed the full-year free cash flow guidance of $900 million to $1 billion and expressed confidence that leverage would decline starting in Q2, ending the fiscal year at or below 3.0x.