Amcor Q2 2024 Earnings Report
Key Takeaways
Amcor reported solid Q2 2024 results with adjusted free cash flow ahead of last year and adjusted earnings per share modestly above expectations. The company reaffirms its fiscal year 2024 outlook, expecting adjusted EPS of 67-71 cents per share and adjusted Free Cash Flow of $850-950 million.
Net sales for the six months ended December 31, 2023, were $6,694 million.
GAAP Net income for the six months was $286 million, with GAAP diluted EPS of 19.8 cents.
Adjusted EPS for the six months was 31.3 cents and Adjusted EBIT was $709 million.
Adjusted Free Cash Flow was $113 million ahead of the prior year.
Amcor
Amcor
Amcor Revenue by Segment
Forward Guidance
Amcor reaffirms its fiscal 2024 outlook, expecting adjusted EPS of 67-71 cents per share and adjusted Free Cash Flow of $850-950 million.
Positive Outlook
- Comparable constant currency earnings made up of underlying business performance down low single digit % to up low single digit %
- A benefit of approximately 2% from share repurchases
- A benefit of up to 2% related to currency translation, assuming current rates prevail through the balance of fiscal 2024
- Adjusted Free Cash Flow of approximately $850 million to $950 million, representing solid growth over fiscal 2023
- Approximately $70 million of cash to be allocated towards share repurchases as part of the program previously announced in fiscal 2023
Challenges Ahead
- A negative impact of approximately 6% related to higher estimated net interest and tax expense
- A negative impact of approximately 3% related to the sale of the Company's Russian business on December 23, 2022
- In comparable constant currency terms, the Company expects third quarter adjusted EPS to be mid single digit % lower compared to the third quarter of fiscal 2023
- Fourth quarter adjusted EPS to be up mid single digit % higher than the fourth quarter of fiscal 2023
- Amcor's guidance contemplates a range of factors which create a degree of uncertainty and complexity when estimating future financial results.
Revenue & Expenses
Visualization of income flow from segment revenue to net income