2f9f45007f7cab2679d6c4ad4db01da5dfe5f57d32b28838466564afd4174864

| Metric [USD Million] | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | Q1 2024 | Q4 2023 | Q3 2023 | Q2 2023 |
|----------------------|---------|---------|---------|---------|---------|---------|---------|---------|
| **Flexibles Segment** | **2,552**  **[0001748790-24-000031_exhibit991q12025.htm:2]**  | **2,686**  **[0001748790-24-000020_exhibit992-q4fy24investo.htm:5]** **[0001748790-24-000020_amcor4q2024ex991-june302024.htm:0]**  | **2,598**  **[0001748790-24-000016_amcr-20240331.htm:22]**  | **2,481**  **[0001748790-24-000006_amcr-20231231.htm:23]**  | **2,568**  **[0001748790-23-000034_exhibit991q12024.htm:2]**  | **11,154** (FY)  **[0001748790-23-000030_amcr-20230630.htm:6]**  | **2,787**  **[0001748790-23-000021_amcr-20230331.htm:23]**  | **5,591** (H1)  **[0001748790-23-000005_exhibit992presentation_f.htm:4]**  |
| **Rigid Packaging Segment** | **801**  **[0001748790-24-000031_exhibit991q12025.htm:2]**  | **849**  **[0001748790-24-000020_exhibit992-q4fy24investo.htm:5]** **[0001748790-24-000020_amcor4q2024ex991-june302024.htm:0]**  | **813**  **[0001748790-24-000016_amcr-20240331.htm:22]**  | **770**  **[0001748790-24-000006_amcr-20231231.htm:23]**  | **875**  **[0001748790-23-000034_exhibit991q12024.htm:2]**  | **3,540** (FY)  **[0001748790-23-000030_amcr-20230630.htm:6]**  | **880**  **[0001748790-23-000021_amcr-20230331.htm:23]**  | **1,763** (H1)  **[0001748790-23-000005_exhibit992presentation_f.htm:4]**  |
| **Total Net Sales** | **3,353**  **[0001748790-24-000031_exhibit991q12025.htm:2]**  | **3,535**  **[0001748790-24-000020_amcor4q2024ex991-june302024.htm:0]**  | **3,411**  **[0001748790-24-000016_amcr-20240331.htm:22]**  | **3,251**  **[0001748790-24-000006_amcr-20231231.htm:23]**  | **3,443**  **[0001748790-23-000034_exhibit991q12024.htm:2]**  | N/A | **3,667**  **[0001748790-23-000021_amcr-20230331.htm:23]**  | N/A |

0dbfc5cd029c0ffd972300d774b389d55f99dfefc6fba45f952fb5d21b9a4b3d

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 **[0001748790-24-000022_amcr-20240630.htm:118]**. The company operates through two main segments: Flexibles and Rigid Packaging, offering a wide range of packaging materials and solutions **[0001748790-24-000022_amcr-20240630.htm:6]**. Amcor's extensive operations span 212 locations across 40 countries, generating significant annual sales **[0001748790-24-000022_amcr-20240630.htm:43]**.

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 **[0001748790-24-000022_amcr-20240630.htm:118]** **[0001748790-24-000022_amcr-20240630.htm:6]** **[0001748790-24-000022_amcr-20240630.htm:5]**.
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 **[0001748790-24-000022_amcr-20240630.htm:118]** **[0001748790-24-000022_amcr-20240630.htm:6]**.

e5b44b2b2d270be6df29001c3e2271cfc03bf37bec950b9e3cfc80fe0d33b603

| Geographical Segment | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | Q1 2024 | Q4 2023 | Q3 2023 | Q2 2023 |
|----------------------|---------|---------|---------|---------|---------|---------|---------|---------|
| **North America** ($ million) | **1,637**  **[0001748790-24-000034_amcr-20240930.htm:20]**  | **6,603**  **[0001748790-24-000022_amcr-20240630.htm:120]**  | **1,678**  **[0001748790-24-000016_amcr-20240331.htm:22]**  | **1,500**  **[0001748790-24-000006_amcr-20231231.htm:23]**  | **1,700**  **[0001748790-23-000036_amcr-20230930.htm:20]**  | **7,156**  **[0001748790-23-000030_amcr-20230630.htm:116]**  | N/A | N/A |
| **Latin America** ($ million) | **467**  **[0001748790-24-000034_amcr-20240930.htm:20]**  | **1,913**  **[0001748790-24-000022_amcr-20240630.htm:120]**  | **463**  **[0001748790-24-000016_amcr-20240331.htm:22]**  | **486**  **[0001748790-24-000006_amcr-20231231.htm:23]**  | **484**  **[0001748790-23-000036_amcr-20230930.htm:20]**  | **1,909**  **[0001748790-23-000030_amcr-20230630.htm:116]**  | N/A | N/A |
| **Europe** ($ million) | **838**  **[0001748790-24-000034_amcr-20240930.htm:20]**  | **3,507**  **[0001748790-24-000022_amcr-20240630.htm:120]**  | **883**  **[0001748790-24-000016_amcr-20240331.htm:22]**  | **864**  **[0001748790-24-000006_amcr-20231231.htm:23]**  | **858**  **[0001748790-23-000036_amcr-20230930.htm:20]**  | **3,952**  **[0001748790-23-000030_amcr-20230630.htm:116]**  | N/A | N/A |
| **Asia Pacific** ($ million) | **411**  **[0001748790-24-000034_amcr-20240930.htm:20]**  | **1,617**  **[0001748790-24-000022_amcr-20240630.htm:120]**  | **387**  **[0001748790-24-000016_amcr-20240331.htm:22]**  | **401**  **[0001748790-24-000006_amcr-20231231.htm:23]**  | **401**  **[0001748790-23-000036_amcr-20230930.htm:20]**  | **1,677**  **[0001748790-23-000030_amcr-20230630.htm:116]**  | N/A | N/A |

9a9472c813bd31f2201edc1655af55017d59743508702ecea50b356af3e5c263

c556751e63783d3143e435e75094a2721e02cf894a8135c5ec1de5e541419b86

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?

bf5cacd7a59585a9f662efd2c0bfde9c838ba4eb506102ff7ad1c8f0292e53da

Adjustments for Non-Cash Items (USD, millions)

Stock-Based Compensation (USD, millions)

Changes in Working Capital (USD, millions)

Capital Expenditures (CapEx) (USD, millions)

Proceeds from Debt (USD, millions)

Repayments of Debt (USD, millions)

Share Repurchases (USD, millions)

Dividend Payments (USD, millions)

Net Change in Cash (USD, millions)

8aa3ad719d2015d557d149c3f879af77bda51291669e00e62e438d5972115565

1. **Integration with Berry Synergies**  
   **Q:** Any surprises in Berry merger? Confident in synergies?  
   **A:** Management reported no surprises during due diligence with Berry Global and is gaining confidence in achieving **$650 million** in synergies, particularly **$325 million** from procurement savings, representing about **3%** of the combined spend of **$13 billion**. They remain on track for a mid-year closing.  **[AMCR_3414186_9]** **[AMCR_3414186_12]** 

2. **Demand Trends and Volume Guidance**  
   **Q:** Update on demand, destocking, and volume guidance?  
   **A:** Consumer demand remains **flat to slightly down**, with modest softening in Q2 versus Q1. Despite this, volumes improved, with Flexibles up **3%** and Rigids up **1%** in Q2. This marks the fourth consecutive quarter of volume improvements. Management reaffirms volume guidance of **low to mid-single digits** for the full year across both Flexibles and Rigids.  **[AMCR_3414186_7]** **[AMCR_3414186_8]** 

3. **Health Care Business Outlook**  
   **Q:** Outlook for health care post Berry merger?  
   **A:** Health care is considered a **gem** in the portfolio. Post-merger with Berry, the combined health care business will be about **$3 billion**, offering complementary products like Berry's multi-component delivery devices. Destocking in health care is largely over, and management expects a return to historical growth rates of **3–4%**, improving mix and profitability.  **[AMCR_3414186_11]** 

4. **Cost Management and Margins**  
   **Q:** How are you managing costs to drive profitability?  
   **A:** Management continues to drive efficiency by managing labor and shift patterns, flexing the workforce to meet demand. They have realized about **$7 million** in benefits from restructuring programs in the first half, with another **$7 million** expected in the second half. These efforts are factored into the reaffirmed full-year guidance.  **[AMCR_3414186_12]** 

5. **Raw Material Costs and Tariffs**  
   **Q:** Update on raw material costs and impact of tariffs?  
   **A:** Raw material costs were **flat** in the first half, with a similar outlook for Q3. Resins and liquids were down **low single digits**, while aluminum was up **mid-single digits**. The business is highly regional, minimizing tariff impacts. Tariff costs are generally passed through to customers, and no significant effects on the cost base are expected.  **[AMCR_3414186_10]** 

6. **Potential Divestitures Impact**  
   **Q:** Will divestitures impact synergies or timeline?  
   **A:** It's too early to say how potential divestitures might impact synergies or timelines. Management is reviewing the entire portfolio to orient the business towards stronger organic growth and better margins. The focus is on improving business attractiveness rather than accelerating synergies.  **[AMCR_3414186_6]** 

7. **Benefits from Berry for Rigids Business**  
   **Q:** How does Berry globalize your Rigids business?  
   **A:** The merger scales the Rigids business to a **$10 billion** entity, combining Amcor's **$3 billion** and Berry's **$7 billion** businesses. The combination enhances the specialty containers segment and adds high-value products like health care delivery systems and dispensing systems. Berry's offerings are complementary, expanding Amcor's reach into multi-regions without overlapping in the North American beverage segment.  **[AMCR_3414186_13]** 

8. **First Half/Second Half Guidance Split**  
   **Q:** How does H1 performance affect full-year guidance?  
   **A:** First-half results are in line with expectations, with volumes in the low single-digit range and **5%** EPS growth. Management reaffirms full-year guidance, expecting second-half volumes to be in the low to mid-single digits. They anticipate strong leverage in Q4 due to higher seasonality and forecast mix improvement as health care returns to growth.  **[AMCR_3414186_14]** 

79da0f7a4f9e155516797d932a1469b078457db6dd1406967ead465b3b2c7e1e

Total Revenue (USD, millions)

Cost of Goods Sold (COGS) (USD, millions)

Selling, General, and Administrative Expenses (SG&A) (USD, millions)

Research and Development (R&D) (USD, millions)

Depreciation and Amortization (D&A) (USD, millions)

Interest Expense (USD, millions)

Operating Income (EBIT) (USD, millions)

Net Income (USD, millions)

Earnings Per Share (EPS) - Basic (USD/share)

Earnings Per Share (EPS) - Diluted (USD/share)

9fd331fe9149b42cfaa16b5a9bb757ec118292ffeff2b494171c05e5e5503d6d

- 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  **[0001748790-24-000022_amcr-20240630.htm:7]** .

ced09f3f9b5347e23930e1b2c04976685d6667991423ea065e009caadba0c67f

North America

Latin America

Europe

Asia Pacific

Total Revenue

821394e600ff72c90eca1ff49e26ee435a08b6a362c505429b430627e8b9d5bb

| Program Details           | Program 1          |
|---------------------------|--------------------|
| Approval Date             | February 7, 2023  **[0001748790-24-000034_amcr-20240930.htm:43]** **[0001748790-24-000034_amcr-20240930.htm:36]**  |
| End Date/Duration         | Extended to June 30, 2024  **[0001748790-24-000034_amcr-20240930.htm:43]** **[0001748790-24-000034_amcr-20240930.htm:36]**  |
| Total Additional Amount   | **$100 million**  **[0001748790-24-000034_amcr-20240930.htm:43]** **[0001748790-24-000034_amcr-20240930.htm:36]**  |
| Remaining Authorization   | **$39 million**  **[0001748790-24-000034_amcr-20240930.htm:43]** **[0001748790-24-000034_amcr-20240930.htm:36]**  |
| Details                   | Extended for an additional twelve months on February 6, 2024  **[0001748790-24-000034_amcr-20240930.htm:43]** **[0001748790-24-000034_amcr-20240930.htm:36]**  |

cef4e608ee8fbb83f4d08b2a9e46c8053b74f671ce3bd2721708df8a4fa63c87

Flexibles

- Films and Other Flexible Products

- Specialty Flexible Folding Cartons

Rigid Packaging

- Containers, Preforms, and Closures

Other

7f615e4fa543c43ed15d1fb7d5c27ecc1788cef662be1cbf74fbe225f71fb177

| Name                   | Position                                                   | Start Date       | Short Bio                                                                                                                                                                                                 |
|------------------------|------------------------------------------------------------|------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Peter Konieczny        | Chief Executive Officer                                    | September 4, 2024 | Peter 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  **[0001748790-24-000027_amcr-20240924.htm:13]** **[0001104659-24-096890_tm2423028d1_ex99-1.htm:0]** **[0001104659-24-096890_tm2423028d1_8k.htm:1]** .        |
| Michael Casamento      | Executive Vice President, Finance and Chief Financial Officer | 2015             | Michael 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  **[0001748790-24-000022_amcr-20240630.htm:13]** **[0001748790-23-000030_amcr-20230630.htm:12]** .                                |
| Susana Suarez Gonzalez | Executive Vice President and Chief Human Resources Officer | 2022             | Susana 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  **[0001748790-24-000022_amcr-20240630.htm:13]** **[0001748790-23-000030_amcr-20230630.htm:12]** .   |
| Deborah Rasin          | Executive Vice President and General Counsel               | 2022             | Deborah 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  **[0001748790-24-000022_amcr-20240630.htm:13]** .               |
| Eric Roegner           | President, Amcor Rigid Packaging                           | 2018             | Eric 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  **[0001748790-23-000030_amcr-20230630.htm:12]** .                                        |
| Fred Stephan           | Chief Operating Officer                                    | September 5, 2024 | Fred 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  **[0001104659-24-097383_tm2423028d2_8k.htm:1]** **[0001104659-24-097383_tm2423028d2_ex99-1.htm:0]** . |
| Michael Zacka          | President, Amcor Flexibles Europe, Middle East & Africa    | 2021             | Michael 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  **[0001748790-24-000022_amcr-20240630.htm:13]** **[0001748790-23-000030_amcr-20230630.htm:12]** .            |
| David Clark            | Chief Sustainability Officer                               | September 5, 2024 | David Clark joined Amcor in 2004 and became the Chief Sustainability Officer on **September 5, 2024**. He previously served as Vice President of Sustainability  **[0001104659-24-097383_tm2423028d2_ex99-1.htm:1]** **[0001104659-24-097383_tm2423028d2_ex99-1.htm:0]** .                                    |

03ae70b2955654b0ed64751f53e7bb605002b464c16b2961f9efbe4fdf805f77

**Annual guidance for FY 2025:**
- **Adjusted EPS**: $0.72 to $0.76  **[AMCR_3405210_6]** **[AMCR_3405210_5]**  (raised from $0.685 to $0.71  **[AMCR_3381589_5]** **[AMCR_3381589_2]** )  
- **Interest Expense**: $290 million to $305 million  **[AMCR_3405210_6]**  (lowered from $310 million to $320 million  **[AMCR_3381589_5]** **[AMCR_3381589_12]** )  
- **Effective Tax Rate**: 19% to 20%  **[AMCR_3405210_6]**  (no prior guidance)  
- **Volume Growth**: Low to mid-single-digit range  **[AMCR_3405210_6]**  (no prior guidance)  
- **Adjusted Free Cash Flow**: $900 million to $1 billion  **[AMCR_3405210_6]**  (raised from $850 million to $950 million  **[AMCR_3381589_5]** **[AMCR_3381589_2]** )  
- **Leverage**: 3x or lower by fiscal year-end  **[AMCR_3405210_6]** **[AMCR_3405210_5]**  (no change from prior guidance  **[AMCR_3381589_5]** )  
- **Earnings Phasing**: 45% in H1 and 55% in H2, with Q4 being the strongest  **[AMCR_3405210_6]**  (no prior guidance)  
- **Dividend**: Quarterly dividend increased by 2% to $0.1275  **[AMCR_3405210_5]**  (no prior guidance)  

334e4f77226f23951aeac3409afce7f520862b52d15e53ada19b7d6fcb39a48f

| Name                        | Start Date | End Date | Reason for Change |
|-----------------------------|------------|----------|-------------------|
| PricewaterhouseCoopers AG  | 2019  **[0001748790-24-000022_amcr-20240630.htm:69]**    | Present  | Current auditor   |

69da226221a9ce57015804be020442eb7ab33660b93198f540f0d2c6419f5fc3

23794d91c53ae875c8e247d72561e35d9d06ee07c70c9e0dbcc977a6d161504a

- Total Revenue: $3,353 million (-3% YoY)  **[0001748790-23-000036_amcr-20230930.htm:4]** **[0001748790-23-000036_amcr-20230930.htm:26]** **[0001748790-23-000036_amcr-20230930.htm:23]** **[0001748790-24-000034_amcr-20240930.htm:4]** **[0001748790-24-000034_amcr-20240930.htm:23]** **[0001748790-24-000034_amcr-20240930.htm:20]**   
- Rigid Packaging: $801 million (**-8% YoY**)  **[0001748790-23-000036_amcr-20230930.htm:20]** **[0001748790-24-000034_amcr-20240930.htm:20]**   
- Operating Income (EBIT): $312 million (+16% YoY)  **[0001748790-23-000036_amcr-20230930.htm:4]** **[0001748790-23-000036_amcr-20230930.htm:23]** **[0001748790-24-000034_amcr-20240930.htm:4]** **[0001748790-24-000034_amcr-20240930.htm:23]** **[0001748790-24-000034_amcr-20240930.htm:20]**   
- Net Income: $193 million (**+27% YoY**)  **[0001748790-23-000036_amcr-20230930.htm:4]** **[0001748790-23-000036_amcr-20230930.htm:26]** **[0001748790-23-000036_amcr-20230930.htm:23]** **[0001748790-24-000034_amcr-20240930.htm:4]** **[0001748790-24-000034_amcr-20240930.htm:23]** **[0001748790-24-000034_amcr-20240930.htm:20]**   
- EPS (Diluted): $0.132/share (+26% YoY)  **[0001748790-23-000036_amcr-20230930.htm:4]** **[0001748790-23-000036_amcr-20230930.htm:26]** **[0001748790-23-000036_amcr-20230930.htm:23]** **[0001748790-24-000034_amcr-20240930.htm:4]** **[0001748790-24-000034_amcr-20240930.htm:23]** **[0001748790-24-000034_amcr-20240930.htm:20]**   

98a78e28c4d18196af63623a3bbf5e955a33aeb3540be2f5cd9108a4f0dec386

Outstanding commodity contracts volume for Aluminum (tons)

Outstanding commodity contracts volume for PET resin (lbs.)

03bdbe4f994826375d2a9f4af535d94a44161ac414b9cc7d543f0ec169c2761a

| Year  | Amount Due (Millions) | Debt Type                                | Interest Rate (%) | % of Total Debt                     |
|-------|------------------------|------------------------------------------|-------------------|--------------------------------------|
| 2025  | $500                  | 4.000% Guaranteed Senior Notes           | 4.000            | 6.8% = (500 / 7,304) * 100 **[0001748790-24-000034_amcr-20240930.htm:31]** **[0001748790-24-000034_amcr-20240930.htm:30]** |
| 2026  | $300                  | 3.100% Guaranteed Senior Notes           | 3.100            | 4.1% = (300 / 7,304) * 100 **[0001748790-24-000034_amcr-20240930.htm:31]** **[0001748790-24-000034_amcr-20240930.htm:30]** |
| 2026  | $600                  | 3.625% Guaranteed Senior Notes           | 3.625            | 8.2% = (600 / 7,304) * 100 **[0001748790-24-000034_amcr-20240930.htm:31]** **[0001748790-24-000034_amcr-20240930.htm:30]** |
| 2027  | €500                  | 1.125% Guaranteed Senior Notes           | 1.125            | 6.8% = (500 / 7,304) * 100 **[0001748790-24-000034_amcr-20240930.htm:31]** **[0001748790-24-000034_amcr-20240930.htm:30]** |
| 2028  | $500                  | 4.500% Guaranteed Senior Notes           | 4.500            | 6.8% = (500 / 7,304) * 100 **[0001748790-24-000034_amcr-20240930.htm:31]** **[0001748790-24-000034_amcr-20240930.htm:30]** |
| 2029  | $500                  | 5.450% Guaranteed Senior Notes           | 5.450            | 6.8% = (500 / 7,304) * 100 **[0001748790-24-000034_amcr-20240930.htm:31]** **[0001748790-24-000034_amcr-20240930.htm:30]** |
| 2030  | $500                  | 2.630% Guaranteed Senior Notes           | 2.630            | 6.8% = (500 / 7,304) * 100 **[0001748790-24-000034_amcr-20240930.htm:31]** **[0001748790-24-000034_amcr-20240930.htm:30]** |
| 2031  | $800                  | 2.690% Guaranteed Senior Notes           | 2.690            | 11.0% = (800 / 7,304) * 100 **[0001748790-24-000034_amcr-20240930.htm:31]** **[0001748790-24-000034_amcr-20240930.htm:30]** |
| 2032  | €500                  | 3.950% Guaranteed Senior Notes           | 3.950            | 6.8% = (500 / 7,304) * 100 **[0001748790-24-000034_amcr-20240930.htm:31]** **[0001748790-24-000034_amcr-20240930.htm:30]** |
| 2033  | $500                  | 5.625% Guaranteed Senior Notes           | 5.625            | 6.8% = (500 / 7,304) * 100 **[0001748790-24-000034_amcr-20240930.htm:31]** **[0001748790-24-000034_amcr-20240930.htm:30]** |

5591cf65c8cfd300e3db0abc775d1b1a8663de8ba4119a35eb5acb9745c33087

61accd17e5c15f82f6a55b43788eb7ed59aa5f6c3737268ef2fce8e727d0d54e

1. **Volume Outlook and Destocking**  
   **Q:** When will volumes recover amid destocking?  
   **A:** Management expects destocking to abate in the second half of fiscal '24, with volumes becoming more "reasonably flat, flat to up to plus or minus low single digits." They anticipate improvement as they exit the year, particularly in the fourth quarter when comparisons become easier.  **[AMCR_3363014_7]** 

2. **Cost Reduction and Earnings Leverage**  
   **Q:** How are cost actions improving earnings despite lower volumes?  
   **A:** The company reduced costs by over **$200 million** in fiscal '23, including headcount reductions of over **1,200 people**. In the first quarter, they took out another **$70 million** of costs compared to the prior year. These actions have resulted in improved earnings leverage and a more dynamic ability to flex costs amid weaker volumes.  **[AMCR_3363014_11]** **[AMCR_3363014_16]** **[AMCR_3363014_26]** 

3. **Pricing Strategy and Inflation**  
   **Q:** Is pricing keeping up with inflation?  
   **A:** Their pricing strategy focuses on recovering inflationary costs. While rates of inflation are easing, they haven't seen significant decreases in the cost base yet. As inflation moderates, the pace of pricing will also ease. Beyond that, pricing will be based on delivering value.  **[AMCR_3363014_15]** **[AMCR_3363014_18]** 

4. **Long-term Earnings Growth Outlook**  
   **Q:** Can you maintain high single-digit EPS growth?  
   **A:** Management is confident in their formula that delivered **8%** EPS growth over the past decade, expecting volumes to grow **1–2%** in a normal environment and generating about **2%** productivity gains. They plan to reinvest cash flows into organic growth, acquisitions, and share repurchases to achieve similar earnings growth rates going forward.  **[AMCR_3363014_19]** 

5. **Capital Allocation and Deleveraging**  
   **Q:** How will excess free cash flow be allocated?  
   **A:** The company aims to maintain leverage in the **2.5 to 3×** range, reinvesting in organic growth with CapEx increasing to **4% to 5%** over time. Excess cash will be used for M&A as a priority, and potentially buybacks, while maintaining an investment-grade balance sheet.  **[AMCR_3363014_21]** 

6. **M&A Strategy and Industry Consolidation**  
   **Q:** What is your approach to M&A in current industry dynamics?  
   **A:** They focus on bolt-on acquisitions, having completed four small deals in the past 12–15 months. They see value primarily from cost synergies, especially in the current environment, and plan to continue being active in the M&A space.  **[AMCR_3363014_20]** 

7. **Impact of GLP-1 Drugs on Demand**  
   **Q:** How might weight-loss drugs affect packaging demand?  
   **A:** Management has seen **no impact** on demand from GLP-1 drugs. While uncertainties exist about the drugs' adoption rates and effects on consumption, they highlight the food industry's history of adapting to changing consumer needs. Reduction in portion sizes could potentially increase packaging units.  **[AMCR_3363014_22]** 

8. **Capacity and Operating Leverage**  
   **Q:** Can existing capacity handle volume recovery without new investment?  
   **A:** They believe they will be well-positioned when volumes return, expecting stronger earnings leverage. While some costs may return (like adding shifts), many reductions are structural, and the existing footprint can absorb incremental volumes without significant investment.  **[AMCR_3363014_16]** **[AMCR_3363014_26]** 

9. **Destocking in Healthcare Segment**  
   **Q:** Why will healthcare destocking continue into second half?  
   **A:** Due to prior supply constraints and raw material shortages, customers built up inventories in healthcare, especially medical devices. Now that raw materials are available, customers are working down inventories—a trend expected to continue into the second half.  **[AMCR_3363014_24]** 

10. **Sustainability Goals and Recyclability**  
    **Q:** Will you achieve 100% recyclable packaging by 2025?  
    **A:** The company is committed to closing the gap, reducing the non-recyclable portion to **11%**, down **6%** from last year. Some sophisticated structures may take longer, but they haven't wavered in their ambition to reach 100%.  **[AMCR_3363014_25]** 

11. **Protein Packaging Market**  
    **Q:** What's the outlook for protein packaging business?  
    **A:** It's early days in their protein packaging journey, with modest business gains. Meat sales have been weak due to a down cycle, but they are confident in their value proposition and see it as a long-term opportunity.  **[AMCR_3363014_13]** **[AMCR_3363014_17]** 

12. **Restructuring Costs and Hyperinflation**  
    **Q:** What drove higher restructuring and hyperinflation costs?  
    **A:** Restructuring costs relate to spending about **$170 million** from Russia proceeds on plant closures and SG&A rightsizing; these costs will continue through the year. The hyperinflation impact was due to a devaluation in Argentina affecting monetary assets.  **[AMCR_3363014_23]** 

13. **Customer Promotions and Volume Recovery**  
    **Q:** Are customers increasing promotions to drive volumes?  
    **A:** Anecdotally, some customers are considering a shift towards driving volume, but the company hasn't seen it yet and isn't relying on it for second-half earnings, which aren't predicated on improved demand or increased promotions.  **[AMCR_3363014_12]** 

14. **Pricing Pressure in U.S. Protein Market**  
    **Q:** Is overcapacity leading to acute price pressure in protein packaging?  
    **A:** They don't see increased pricing pressure in the protein segment compared to the past. Assets are fungible across categories like dairy, and they don't view the market as overly capitalized or with excess capacity.  **[AMCR_3363014_17]** 

15. **Balance Sheet and Leverage**  
    **Q:** Will leverage stay within target if volumes don't stabilize?  
    **A:** They finished the quarter with net debt of **$6.5–$6.6 billion** and leverage at **3.3×**, expecting it to normalize to **3×** by end of June, even if volumes don't stabilize, due to seasonality and working capital improvements.  **[AMCR_3363014_14]** **[AMCR_3363014_21]** 

16. **New Product Adoption and Pricing Premiums**  
    **Q:** How are new sustainable products performing?  
    **A:** Early-stage products like AmLite, AmSky, and AMPrima are generating real sales in the low tens of millions of dollars, with meaningful customer adoption, underscoring excitement about these platforms.  **[AMCR_3363014_10]** 

17. **Cost Savings: Temporary vs. Structural**  
    **Q:** How much of cost savings are temporary vs. structural?  
    **A:** While some cost reductions may reverse with volume return (like adding shifts), overhead reductions and procurement benefits are expected to be sustained. They don't view the entire quantum of cost savings as temporary.  **[AMCR_3363014_26]** 

b952672c3b4b1828b6fc8d37d69bde47596cb6b15bcf351e964ef1926c87f2d6

1. **Volume Growth and Outlook**  
   **Q:** Are Q1 volumes as expected, and what's the outlook?  
   **A:** Volumes in Q1 grew by **2%**, up **100 basis points** from last quarter.  **[AMCR_3405210_8]**  Excluding healthcare and North American beverage, which comprise **25%** of sales, the rest of the portfolio grew **4%**.  **[AMCR_3405210_8]**  Flexibles increased **3%**, and when excluding healthcare, they were up **5%**.  **[AMCR_3405210_8]**  Medical destocking has ended, with growth returning, but pharma destocking continues and is expected to abate after Q2, setting up a better second half.  **[AMCR_3405210_8]**  We're pleased with the volume performance and expect sequential improvement in Q2.  **[AMCR_3405210_8]** 

2. **Innovation and New Products**  
   **Q:** How are AmFiber and AmPrima performing?  
   **A:** **AmPrima**, our recyclable plastic-based product, is a **sizable** and growing part of our portfolio.  **[AMCR_3405210_9]**  **AmFiber**, a sustainable fiber-based packaging, is also growing but from a smaller base.  **[AMCR_3405210_9]**  These products are developed to meet regulatory trends like Europe's packaging waste regulation, offering recyclable solutions that align with consumer sustainability demands.  **[AMCR_3405210_9]** 

3. **Joint Venture Unwind**  
   **Q:** What's the rationale behind unwinding the Bericap joint venture?  
   **A:** We unwound the joint venture due to differences with our partner over capital investment needed for growth and acceptable returns.  **[AMCR_3405210_10]**  We believe we can allocate capital more effectively elsewhere in the business.  **[AMCR_3405210_10]**  The closure business contributed about **$190 million** in annual sales and **$19 million** in EBIT, but the impact on net income will be minor after reinvesting proceeds to reduce debt.  **[AMCR_3405210_10]** **[AMCR_3405210_11]** 

4. **Margin Improvement Expectations**  
   **Q:** Can margin improvement exceed 20–30 basis points?  
   **A:** While we've developed a leaner cost structure, we believe the **20–30 basis point** annual margin improvement algorithm remains appropriate long term.  **[AMCR_3405210_11]**  We continue to drive efficiencies and manage costs tightly, but margins may vary with the business cycle.  **[AMCR_3405210_11]** 

5. **Net Debt and Leverage**  
   **Q:** Why is net debt higher, and how will it change?  
   **A:** Leverage peaked at **3.5x**, higher due to FX impacts and inventory build.  **[AMCR_3405210_13]**  We've increased inventories to meet strong demand signals and mitigate supply chain disruptions.  **[AMCR_3405210_13]**  We expect leverage to decrease, aided by cash flows of **$900 million to $1 billion** and proceeds from the Bericap disposal, bringing leverage down to **3x or below** by June 2025.  **[AMCR_3405210_13]** 

6. **Organic Growth Targets**  
   **Q:** What's the new target for organic growth?  
   **A:** We aim to outperform our pre-COVID expectations and achieve higher growth consistently going forward.  **[AMCR_3405210_14]**  While not specifying a number, we believe we can do better than the prior low single-digit top-line growth.  **[AMCR_3405210_14]** 

7. **Consumer Trends Impact**  
   **Q:** How are consumer trends affecting key markets?  
   **A:** Consumer spending is flat or slightly down, and we don't expect much improvement.  **[AMCR_3405210_16]**  However, customers are balancing price and volumes better, with increased promotional activities benefiting us.  **[AMCR_3405210_16]**  Destocking is over, except in healthcare and North American beverages.  **[AMCR_3405210_16]**  We're seeing some market share gains, with momentum increasing.  **[AMCR_3405210_16]** 

8. **Rigid Packaging Outlook**  
   **Q:** When will Rigid Packaging improve in profit and volume?  
   **A:** Rigid Packaging has returned to earnings growth over the past few quarters by adjusting costs and capacities.  **[AMCR_3405210_17]**  Volume improvement depends on consumer demand in discretionary categories like ready-to-drink teas and juices.  **[AMCR_3405210_17]**  As consumer sentiment improves, we expect better volumes and profitability in Rigids.  **[AMCR_3405210_17]** 

9. **Dairy and Liquids Opportunities**  
   **Q:** What's the opportunity in dairy and liquids?  
   **A:** We have a strong position in North America, with annual revenues of **$800 million to $1 billion** in each category.  **[AMCR_3405210_12]**  By leveraging successful products globally, we see significant growth potential.  **[AMCR_3405210_12]** 

10. **Restructuring Costs**  
    **Q:** What's behind the $13 million restructuring impact?  
    **A:** This relates to our cost-saving program following the disposal of the Russian business.  **[AMCR_3405210_15]**  We've announced **7 plant closures** and **4 restructures**, aiming for **$170 million** in total costs and **$50 million** in annualized benefits.  **[AMCR_3405210_15]**  We're on track to complete the program by end of calendar 2024.  **[AMCR_3405210_15]** 

e762399b169fc1cdd60b864f331aa0e698844fd3a783c5392f0ec40ac71b9b63

- **The company is still experiencing negative volume performance in developed markets, with volumes down in North America and Europe compared to the prior year.**  **[AMCR_3381589_11]**
- **Despite recent cost reductions, there is concern about the durability of variable cost efficiencies as volumes normalize, which could impact future margins.**  **[AMCR_3381589_9]**
- **The Rigid Packaging segment, particularly in North America, continues to face challenges with lower volumes and soft consumer demand, and other substrates are recovering faster than plastics in the beverage market.**  **[AMCR_3381589_18]**

3baf5c27c167b4958e41ad8963b410ba818d9494877f7aac670869e01d5fa770

- **Amcor experienced significant volume declines of 8% in Q1 2024**, and expects a similar trajectory in Q2, with uncertainty about when improvement will occur.  **[AMCR_3363014_7]**
- **Weakness in key segments**, such as meat/protein sales which have been weak across the company in the first quarter, and **continued destocking in healthcare**, are expected to neutralize positive price/mix effects for the full year.  **[AMCR_3363014_13]** **[AMCR_3363014_8]**
- **Increased restructuring costs of $170 million related to Russia-Ukraine plant closures**, and higher hyperinflation impacts due to currency devaluation in Argentina, may continue to weigh on earnings through the year.  **[AMCR_3363014_23]**

af4b4da63c7d188408d5338006cf876b7223c59a79e504d0e89adb7f47e447b0

- **Amcor has seen significant improvement in volumes in its Flexibles segment between Q2 and Q3**, particularly in priority categories like pet care, meat, and cheese, indicating a positive growth trend.  **[AMCR_3381589_13]**
- **Approximately 90% of Amcor's packaging portfolio is in recycle-ready structures**, demonstrating its strong commitment to sustainability and positioning it favorably as industry targets shift.  **[AMCR_3381589_13]** **[AMCR_3381589_15]**
- **Amcor's Rigid Packaging business has returned to profit growth** due to strategic strengthening and restructuring efforts, including footprint optimization and leveraging strong customer relationships, setting the stage for improved performance as volumes recover.  **[AMCR_3381589_11]**

6f5ceeb4237d18fc7c83c137de429e1a47961585e476efa03a731077f389fda1

1. **Cost Savings and Operating Leverage**  
   **Q:** How sustainable are the recent cost savings and operational efficiencies?  
   **A:** Management is pleased with the **$130 million** in cost reductions achieved in Q3, which included a **$15 million** benefit from the restructuring program.  **[AMCR_3381589_9]**  They are focusing on both operational cost flexing and structural cost reductions.  **[AMCR_3381589_9]**  Operational measures include eliminating shifts, reducing overtime, extended shutdowns, driving procurement savings, and tightly controlling discretionary spending.  **[AMCR_3381589_9]**  Structurally, they've announced seven plant closures and expect the restructuring program to deliver **$50 million** in EBIT benefit, with **$35 million** in FY '24 and **$15 million** into FY '25.  **[AMCR_3381589_9]**  While some costs may return as volumes normalize, they expect ongoing margin improvement due to these initiatives.  **[AMCR_3381589_9]** 

2. **Volume Improvements and Outlook**  
   **Q:** Are the volume improvements in Q3 sustainable going forward?  
   **A:** Volumes improved significantly from Q2 to Q3, with Q2 down **10%** and Q3 down **4%** year-over-year.  **[AMCR_3381589_7]**  The improvement was due to destocking abating, better customer performance, and some unwind of unusually low December volumes.  **[AMCR_3381589_7]**  Management expects the positive momentum to carry into Q4, anticipating low single-digit volume declines mainly due to continued destocking in health care.  **[AMCR_3381589_8]**  They believe volumes will exit Q4 **flat** and see components of the improvement as sustainable.  **[AMCR_3381589_7]** **[AMCR_3381589_8]** 

3. **EPS Guidance and Q4 Expectations**  
   **Q:** Given the strong Q3 performance, why isn't Q4 EPS guidance being upgraded?  
   **A:** Despite delivering EPS growth in Q3, management maintained their Q4 EPS growth expectation at mid-single digits.  **[AMCR_3381589_14]**  They increased full-year guidance to **$0.685–$0.71**, reflecting the improved Q3 performance.  **[AMCR_3381589_14]**  Q4 is expected to see sequential improvement in volumes and profit, but continued destocking in health care will hold back volume growth.  **[AMCR_3381589_14]**  Management feels confident in delivering within the guidance range but doesn't want to get ahead of themselves at this point.  **[AMCR_3381589_14]** 

4. **Strategic Positioning of Rigid Packaging**  
   **Q:** How does management view the strategic position of the Rigid Packaging business?  
   **A:** Management believes Rigid Packaging is a strategically important and scalable business for Amcor.  **[AMCR_3381589_11]**  The portfolio includes North American beverage, Specialty Containers, Latin American operations, and closures.  **[AMCR_3381589_11]**  They have good industry positions and strong customer relationships, along with a strong sustainability profile in this segment.  **[AMCR_3381589_11]**  Recent restructuring and footprint optimization have strengthened the business, enabling it to return to profit growth despite a soft market.  **[AMCR_3381589_11]** 

5. **Interest Expense and Hedging Profile**  
   **Q:** What's driving the lower net interest expense guidance, and what's the hedging profile?  
   **A:** Net interest expense guidance was reduced slightly to **$310–$320 million** due to better timing of cash flows and working capital improvements.  **[AMCR_3381589_12]**  The debt profile is about **70% fixed** and **30% floating**, with no maturities until mid-2025.  **[AMCR_3381589_16]**  Management does not expect a material change in interest expense going into FY '25 based on the current debt profile and forward interest rate curves.  **[AMCR_3381589_16]** 

6. **Sustainability Targets and Regulation Impact**  
   **Q:** How are changes in sustainability targets and regulations affecting Amcor?  
   **A:** While some industry participants are adjusting their sustainability targets, Amcor remains committed to its goal of making **100%** of packaging recyclable, reusable, or compostable by 2025.  **[AMCR_3381589_13]**  They have made significant progress, with roughly **90%** of their packaging portfolio now in recycle-ready structures.  **[AMCR_3381589_13]** **[AMCR_3381589_15]**  Management welcomes regulatory developments like the EU's Packaging and Packaging Waste Regulation (PPWR), as they believe it creates an environment that drives the industry toward a circular economy for plastics.  **[AMCR_3381589_15]** 

7. **Below-the-Line Restructuring Charges**  
   **Q:** When will the restructuring charges come to an end?  
   **A:** The restructuring program is about two-thirds complete, with **$110 million** spent out of the committed **$170 million**.  **[AMCR_3381589_18]**  Approximately **$50–$60 million** remains to be invested, and management expects to be most of the way through the program by the end of the calendar year.  **[AMCR_3381589_18]**  They are starting to see benefits from the restructuring, contributing **$15 million** in the quarter.  **[AMCR_3381589_18]** 

1538abb58f2bc2a74939687ed2ee945bc03f8e4a7c97c6cea86a8f209cfe56c9

- **Amcor expects a significant improvement in earnings in the second half of fiscal 2024**, supported by several known factors such as benefits from structural cost-saving initiatives, reduced interest headwinds, and an anticipated normalization of customer inventories leading to improved volumes. This includes the benefit of approximately **$35 million from structural cost-saving initiatives** that build through the year.  **[AMCR_3363014_4]** **[AMCR_3363014_7]** **[AMCR_3363014_19]** **[AMCR_3363014_22]**
- **Amcor remains confident in its long-term growth and value creation strategy**, aiming to return to high single-digit earnings growth rates. The company relies on its proven growth formula, including volume growth in normal environments, continuous productivity improvements, and the use of cash flow and balance sheet capacity for acquisitions or share repurchases to drive further EPS growth.  **[AMCR_3363014_19]**
- **Cost reduction initiatives are showing tangible results**, with Amcor reducing costs by over **$200 million** and headcount by over **1,200 people** in fiscal 2023, and achieving an additional **$70 million** in cost reductions in the first quarter of fiscal 2024. These actions have led to improved earnings leverage and reduced the impact of lower volumes on profitability.  **[AMCR_3363014_11]**

0c5916c5c41b7f1d323427daac0ebba0871532590ab546c43f7ce9fc046e642f

Amcor PLC (AMCR)

Financials