Amcor completes Berry acquisition, narrows earnings guidance
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The news: Global packaging giant Amcor has narrowed its full-year earnings guidance after a weaker-than-expected third quarter performance amid softer demand in North America.
The numbers: Net income for the nine months to March was up 3% from a year ago to USD728 million ($1.14 billion), while net sales were down 2% to USD9.93 billion. Sales for the quarter were down 2% at USD3.33 billion, while adjusted earnings per share was 18 US cents, below analyst estimates of 19 cents. Amcor will pay a quarterly dividend of 12.75 US cents, up from 12.5 US cents a year ago.
The context: Amcor said overall volumes in the quarter were in line with last year as weak consumer demand was offset by modest share gains. By region, volumes generally softened sequentially in North America. Across all other regions, volume growth in the flexibles and rigid packaging segments remained in the low to mid single digit range.
The company also said it has completed its $13 billion acquisition of US-based Berry Global earlier than anticipated. Including the impact of the merger in May and June, Amcor has narrowed its full-year earnings guidance to between 72 US cents and 74 US cents, down from its previous estimate of 72 to 76 US cents.
"In FY26, before taking into account growth in the underlying business, we expect delivery of USD260 million of pre-tax synergies alone to drive adjusted EPS accretion of approximately 12 per cent,” CEO Peter Konieczny said.
The source: ASX
