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    Amcor PLC (AMCR)

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    Amcor plc is a global leader in developing and producing responsible packaging solutions for various end markets, including food, beverage, pharmaceutical, medical, home and personal-care, and other consumer goods . The company operates through two main segments: Flexibles and Rigid Packaging, offering a wide range of packaging materials and solutions . Amcor's extensive operations span 212 locations across 40 countries, generating significant annual sales .

    1. Flexibles - Manufactures flexible and film packaging, supplying polymer resin, aluminum, and fiber-based flexible packaging. Employs about 35,000 people across 160 facilities in 36 countries .
    2. Rigid Packaging - Produces rigid containers for a broad range of predominantly beverage and food products. Employs around 5,000 people at 52 facilities in 11 countries .
    NamePositionStart DateShort Bio
    Peter KoniecznyChief Executive OfficerSeptember 4, 2024Peter Konieczny is the CEO of Amcor plc, appointed on September 4, 2024. He was the Interim CEO from April 2024 and has been with Amcor since 2010, holding various leadership roles .
    Michael CasamentoExecutive Vice President, Finance and Chief Financial Officer2015Michael Casamento has been serving as the EVP, Finance and CFO at Amcor since 2015. He was previously the Vice President of Corporate Finance from 2014 to 2015 .
    Susana Suarez GonzalezExecutive Vice President and Chief Human Resources Officer2022Susana Suarez Gonzalez has been the EVP and Chief HR Officer at Amcor since 2022. She was previously EVP, Chief HR and Diversity & Inclusion Officer at International Flavors and Fragrances .
    Deborah RasinExecutive Vice President and General Counsel2022Deborah Rasin has been the EVP and General Counsel at Amcor since 2022. She was previously the Senior VP, Chief Legal Officer, and Secretary at Hill-Rom Holdings from 2016 to 2022 .
    Eric RoegnerPresident, Amcor Rigid Packaging2018Eric Roegner has been the President of Amcor Rigid Packaging since 2018. He held executive roles at Arconic, Inc. (formerly Alcoa Inc.) from 2006 to 2018 .
    Fred StephanChief Operating OfficerSeptember 5, 2024Fred Stephan is the COO of Amcor plc, appointed on September 5, 2024. He was President of Amcor Flexibles North America since June 2019 and has overseen the Amcor Flexibles Latin America business .
    Michael ZackaPresident, Amcor Flexibles Europe, Middle East & Africa2021Michael Zacka has been the President of Amcor Flexibles EMEA since 2021. He was previously President of Amcor Flexibles Asia Pacific and Chief Commercial Officer from 2017 to 2021 .
    David ClarkChief Sustainability OfficerSeptember 5, 2024David Clark joined Amcor in 2004 and became the Chief Sustainability Officer on September 5, 2024. He previously served as Vice President of Sustainability .
    1. With destocking in the healthcare sector still ongoing and continued weak consumer demand in North American beverage, what specific strategies are you implementing to mitigate these challenges and drive volume improvements in these key segments?
    2. Given the recent leadership transition, how will your strategic priorities evolve, particularly concerning the Rigid Packaging business, and what measures are you taking to ensure stability and continuity amid these changes?
    3. The European Union's upcoming Plastic Packaging Waste Regulation (PPWR) could pose significant challenges for plastic packaging companies; how do you anticipate this will impact your Flexibles business, and what are your plans to adapt to potential regulatory headwinds?
    4. Despite better-than-expected earnings in the third quarter, you maintained your fourth-quarter EPS growth guidance at mid-single digits; can you explain why you didn't upgrade your outlook and what risks or uncertainties you foresee that might impact future performance?
    5. You mentioned that the destocking is largely behind you outside of healthcare; when do you expect destocking in the healthcare sector to conclude, and how might prolonged destocking affect your earnings trajectory and market position in this segment?
    Program DetailsProgram 1
    Approval DateFebruary 7, 2023
    End Date/DurationExtended to June 30, 2024
    Total Additional Amount$100 million
    Remaining Authorization$39 million
    DetailsExtended for an additional twelve months on February 6, 2024
    YearAmount Due (Millions)Debt TypeInterest Rate (%)% of Total Debt
    2025$5004.000% Guaranteed Senior Notes4.0006.8% = (500 / 7,304) * 100
    2026$3003.100% Guaranteed Senior Notes3.1004.1% = (300 / 7,304) * 100
    2026$6003.625% Guaranteed Senior Notes3.6258.2% = (600 / 7,304) * 100
    2027€5001.125% Guaranteed Senior Notes1.1256.8% = (500 / 7,304) * 100
    2028$5004.500% Guaranteed Senior Notes4.5006.8% = (500 / 7,304) * 100
    2029$5005.450% Guaranteed Senior Notes5.4506.8% = (500 / 7,304) * 100
    2030$5002.630% Guaranteed Senior Notes2.6306.8% = (500 / 7,304) * 100
    2031$8002.690% Guaranteed Senior Notes2.69011.0% = (800 / 7,304) * 100
    2032€5003.950% Guaranteed Senior Notes3.9506.8% = (500 / 7,304) * 100
    2033$5005.625% Guaranteed Senior Notes5.6256.8% = (500 / 7,304) * 100

    Competitors mentioned in the company's latest 10K filing.

    • AptarGroup, Inc.
    • Ball Corporation
    • Berry Global Group, Inc.
    • CCL Industries Inc.
    • Crown Holdings, Inc.
    • Graphic Packaging Holding Company
    • Huhtamaki Oyj
    • International Paper Company
    • Mayr-Melnhof Karton AG
    • O-I Glass, Inc.
    • Sealed Air Corporation
    • Silgan Holdings Inc.
    • Sonoco Products Company

    These companies are mentioned as competitors in the highly competitive markets where Amcor operates, which include areas of competition such as service, sustainability, innovation, quality, and price .

    NameStart DateEnd DateReason for Change
    PricewaterhouseCoopers AG2019 PresentCurrent auditor

    Recent developments and announcements about AMCR.

    Financial Reporting

      Earnings Call

      ·
      18 hours ago

      Amcor (AMCR) has released its fiscal Q2 2025 earnings call transcript, providing key updates on its financial performance, forward guidance, and strategic initiatives. Below is a summary of the main points:

      Revenue and Profit Performance

      • Volumes and Sales: Q2 volumes increased by 3% year-over-year, with net sales growing by 1% on a comparable constant currency basis. This growth was driven by solid demand across key geographies and product categories, despite ongoing destocking in the healthcare segment.
      • Adjusted EBIT: The company reported adjusted EBIT of $322 million for the quarter, a 4% increase on a comparable constant currency basis. Margins expanded by 20 basis points to 12.8%.
      • EPS Growth: Adjusted earnings per share (EPS) grew by 5% year-over-year, reaching $0.161.

      Management’s Forward Guidance

      • Full-Year Guidance: Amcor reaffirmed its fiscal 2025 guidance, expecting adjusted EPS in the range of $0.72 to $0.76, representing 3% to 8% growth on a comparable constant currency basis. The company anticipates low to mid-single-digit volume growth for the year.
      • Second Half Expectations: Management remains confident in the second half, projecting stronger performance due to seasonal factors and improvements in healthcare destocking.

      Market Conditions and Strategic Initiatives

      • Healthcare Destocking: Destocking in the healthcare segment, particularly in pharmaceuticals, has largely abated. Management expects healthcare volumes to return to growth in the second half of fiscal 2025.
      • Regional Performance: Strong demand was observed in Asia, with mid-single-digit volume growth in North America and Europe. Latin America showed mixed results, with growth in Colombia and Peru offset by weaker demand in Argentina.
      • Berry Merger: Amcor is progressing with its merger with Berry Global, which is expected to close by mid-2025. The merger is anticipated to enhance Amcor’s portfolio, drive synergies of $650 million, and improve margins and cash flow.

      Analyst Questions and Management Responses

      • Volume Growth and Mix Improvement: Analysts inquired about the impact of healthcare destocking and the potential for mix improvement. Management confirmed that destocking is largely behind them and expects mix improvements in the second half as healthcare returns to growth.
      • Synergies from Berry Merger: Management expressed confidence in achieving $650 million in synergies, with procurement, SG&A, and operational efficiencies being key contributors.
      • Raw Material Costs: Input costs remained flat in the first half, with a benign outlook for Q3. Tariffs are not expected to significantly impact the cost base due to Amcor’s regionalized operations.

      Key Takeaways

      Amcor delivered solid Q2 results, with sequential volume improvements and margin expansion. The company remains optimistic about the second half of fiscal 2025, supported by easing healthcare destocking and seasonal demand. The merger with Berry Global is expected to be a transformative step, enhancing Amcor’s growth potential and operational efficiency.

      For further details, refer to the full earnings call transcript available on Amcor’s website.

    Corporate Leadership

      Leadership Change

      ·
      Jan 6, 2025, 9:22 PM

      Who's leaving?

      • Eric Roegner, previously President of Amcor Rigid Packaging, has transitioned to the role of Executive Vice President, Integration and Special Projects, effective January 1, 2025. He no longer serves as an executive officer of the company.

      Why?

      • This change is part of a strategic initiative to leverage Mr. Roegner's expertise in closures and containers for the integration with Berry Global.

      Who's stepping up?

      • Rodrigo Lecot has been appointed as Interim President, Amcor Rigid Packaging, effective January 1, 2025.

    Legal & Compliance

      Legal Proceedings

      ·
      Nov 19, 2024, 8:05 PM

      Summary of the Legal Matter Involving Amcor and Berry Global Group

      Key Parties Involved:

      • Amcor plc: A Jersey public company and a global leader in developing and producing responsible packaging solutions.
      • Berry Global Group, Inc.: A Delaware corporation and a global leader in innovative packaging solutions.
      • Aurora Spirit, Inc.: A Delaware corporation and wholly-owned subsidiary of Amcor.

      Nature of the Proceedings:

      • Merger Agreement: On November 19, 2024, Amcor, Aurora Spirit, and Berry entered into an Agreement and Plan of Merger. This agreement outlines the merger of Aurora Spirit with and into Berry, with Berry surviving as a wholly-owned subsidiary of Amcor .
      • Governance Changes: Post-merger, the Amcor Board will consist of 11 directors, including four from the Berry Board. The current chair of the Amcor Board will remain, and Stephen E. Sterrett, the current chair of the Berry Board, will be named the deputy chair .
      • Equity Awards and Stock Options: The merger agreement details the treatment of Berry's restricted stock units, performance stock units, and stock options, converting them into Amcor's equivalents .
      • Debt Commitment: Amcor has secured a $3 billion bridge loan facility to refinance Berry's existing debt if necessary .

      Potential Financial or Operational Consequences:

      • Stock Conversion: Each share of Berry common stock will be converted into 7.25 Amcor ordinary shares .
      • Synergies and Value Creation: The merger is expected to create $650 million in annual earnings synergies by the end of the third year, with significant cost savings and growth synergies .
      • Financial Impact: The combined company will have revenues of $24 billion and adjusted EBITDA of $4.3 billion, with strong annual cash flow and a commitment to maintaining an investment-grade balance sheet .
      • Operational Integration: The merger aims to enhance innovation capabilities, expand product offerings, and improve supply chain resilience, benefiting both companies' customers and shareholders .
      • Regulatory and Shareholder Approvals: The completion of the merger is subject to regulatory approvals, shareholder approvals, and other customary closing conditions, with the closing targeted for mid-2025 .
      • Termination Fees: Both parties have agreed to pay a termination fee of $260 million under specified circumstances, such as entering into a superior proposal .

      Conclusion: The merger between Amcor and Berry is a significant strategic move aimed at creating a global leader in consumer and healthcare packaging solutions. The transaction is expected to bring substantial financial and operational benefits, although it is subject to various approvals and conditions .