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Mar 31, 2023
Amcor Q3 2023 Earnings Report
Amcor's third quarter performance reflected resilience amidst market challenges, with decisive price and cost actions offsetting demand volatility.
Key Takeaways
Amcor reported a modest 2.5% decline in adjusted EBIT for the third quarter, with net sales of $3,667 million. The company is focused on recovering inflation, driving cost productivity, and advancing structural cost reductions to navigate challenging market conditions.
GAAP EPS was 11.9 cents per share, and adjusted EPS was 17.5 cents per share.
Net sales were $3,667 million, which were 1% lower than last year.
Adjusted EBIT declined by 2.5% on a comparable constant currency basis.
Fiscal 2023 outlook adjusted for adjusted EPS to 72-74 cents per share and free cash flow to $800-900 million.
Amcor
Amcor
Amcor Revenue by Segment
Revenue by Segment
Flexible Packaging Revenue
CapyFin.comRigid Packaging Revenue
CapyFin.com Forward Guidance
Amcor has updated its fiscal year 2023 outlook to reflect current market conditions, with adjusted EPS expected to be 72 to 74 cents per share and adjusted free cash flow between $800 million and $900 million.
Positive Outlook
- Earnings from the underlying business are expected to be in line with last year.
- Share repurchases are expected to provide a benefit of approximately 2%.
- Focus on initiatives to recover inflation.
- Drive cost productivity.
- Advance previously announced structural cost reductions.
Challenges Ahead
- The demand environment in the fourth quarter is expected to remain weak and volatile, resulting in a mid-single-digit decline in overall volumes compared with last year.
- Higher combined interest and tax expense is expected to have a negative impact of approximately 4%.
- The sale of the company's three plants in Russia is expected to have an unfavorable impact of approximately 3%.
- A stronger US dollar is expected to drive an unfavorable currency impact of approximately 4%.
- Working capital and cash earnings expectations have been updated to reflect the challenging environment.
Revenue & Expenses
Visualization of income flow from segment revenue to net income