Amcor (ASX:AMC) Closes Berry Global Merger, Reports Q3 Results
Merger Completion
Amcor plc successfully closed its transformational merger with Berry Global earlier than anticipated, enhancing its position in the global packaging market. CEO Peter Konieczny stated, “Today is a defining day for Amcor as we closed our transformational merger with Berry Global. Through this combination, Amcor has enhanced positions in attractive categories, a broader, more complete customer offering and expanded material science and innovation capabilities.”
Financial Performance
For the three months ending March 31, 2025, Amcor reported net sales of $3,333 million, GAAP net income of $196 million, and diluted EPS of 13.6 cents. Adjusted EBIT was $384 million with an adjusted EPS of 18.0 cents, representing a 5% increase on a comparable constant currency basis. Year-to-date, net sales reached $9,927 million, GAAP net income was $550 million, and diluted EPS stood at 38.0 cps. Adjusted EBIT for the YTD period was $1,112 million, up 3%, with an adjusted EPS of 50.3 cps, a 5% rise.
Dividend Declaration
The Amcor Board of Directors declared a quarterly cash dividend of 12.75 cents per share, up from 12.5 cents last year. The dividend will be paid in US dollars to NYSE shareholders and in Australian cents to ASX CDI holders. The ex-dividend date is May 21, 2025, for ASX investors and May 22, 2025, for NYSE investors, with payments scheduled for June 10, 2025.
Future Outlook
Amcor provided fiscal 2025 guidance, projecting adjusted EPS of 72-74 cents per share and adjusted free cash flow between $900 million and $1,000 million. The company anticipates delivering $650 million in total synergies from the merger by year three, with $260 million expected in fiscal 2026 alone.
Safety and Sustainability
Amcor continues to prioritize safety, achieving a Total Recordable Incident Rate (TRIR) of 0.27 and maintaining 69% of all sites injury-free for over twelve months. The company remains committed to sustainability, focusing on recyclable and reusable packaging solutions.
Motley Fool contributor Lianne Eastty has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Amcor Plc. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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