Amcor reports 3% drop in Q1 FY25 net sales, divests 50% stake in BCNA joint venture

SWITZERLAND – Amcor, a global leader in packaging solutions, reported a 3% decline in net sales for the first quarter of fiscal year 2025 (FY25), with revenue dropping to US$3.35 billion from US$3.44 billion in the same period of FY24.

Despite this dip, Amcor’s net income under generally accepted accounting principles (GAAP) rose by 25.6%, reaching US$191 million compared to US$152 million the prior year.

GAAP diluted earnings per share (EPS) also improved, increasing from 10.5¢ in Q1 FY24 to 13.2¢ in Q1 FY25.

Adjusted net income grew by 3% to US$234 million, up from US$226 million in Q1 FY24, while adjusted earnings before interest and taxes (EBIT) saw a 2% increase, reaching US$365 million.

Adjusted EPS for the quarter was 16.2¢, up 5% from 15.6¢ last year. Amcor’s net debt as of September 30, 2024, stood at US$6.87 billion, with a leverage ratio of 3.5 times, slightly affected by adverse currency exchange rates.

Sales trends across regions varied: North America saw a low single-digit sales decline due to an unfavorable price mix, though this was partially offset by volume growth.

In Europe, net sales similarly declined at low single-digit rates, while Asia experienced low single-digit growth, with India and China showing gains that counterbalanced lower volumes in the Philippines.

“These results align with the expectations we outlined in August, giving us the confidence to reaffirm our guidance for the fiscal year,” said Amcor CEO Peter Konieczny.

“I am pleased with the overall performance trajectory and excited about the significant opportunities ahead to enhance our growth, build earnings momentum, and evolve into an even stronger company.”

Looking to the fiscal year ending June 30, 2025, Amcor anticipates an adjusted EPS of approximately 72¢ to 76¢, representing a growth of 3% to 8% on a constant currency basis.

Amcor divests 50% stake in BCNA joint venture for US$122M

In a strategic move, Amcor has agreed to sell its 50% stake in the Bericap North America (BCNA) joint venture to partner Bericap for US$122 million.

The BCNA venture, established in 1997, operates three facilities across the US, Canada, and Mexico, producing closures for food, beverage, and other markets.

In FY24, BCNA recorded sales of around US$190 million and adjusted EBIT of approximately US$19 million, both of which were fully consolidated under Amcor’s Rigid Packaging division. Amcor’s adjusted net income from the JV stood at about US$8 million.

The divestiture is expected to close by December 31, 2024, with the proceeds directed toward reducing Amcor’s debt. The transaction will not significantly impact Amcor’s FY25 financial outlook.

“We’ve shared a strong partnership with Bericap for 27 years,” noted Konieczny.

“At this point, differing views on near-term capital requirements led us to unwind the venture. Amcor will continue operating in the closures space and remains disciplined in capital allocation. We thank the Bericap team for years of collaboration and wish them success.”

This decision marks a pivotal point for Amcor as it optimizes its focus on core operations while maintaining a disciplined approach to capital management.

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