Amcor (AMCR) Bank of America 2025 Global Agriculture and Materials Conference summary

Business performance and trends

• Sequential volume improvements observed, with 4% growth in 75% of the business excluding North American beverage and healthcare.

• EBIT and EPS increased by 5%, with improved cash flow and leverage reduced to 3.3.

• Destocking in healthcare has ended, and growth is expected to return in the back half of the year.

• Guidance for the year reaffirmed, reflecting confidence in ongoing performance.

• Return on funds employed is stable at 15-16%, with gradual improvement since the Bemis acquisition.

Acquisition and integration plans

• Shareholders of both companies approved the Berry Global combination, marking a major milestone.

• Regulatory approvals are progressing positively, with closure expected by mid-year.

• The acquisition is highly complementary, with minimal overlap in product and market segments.

• Up to $500 million in divestitures allowed if required by regulators, though unlikely to be needed.

• Integration teams are in place, leveraging experience from previous acquisitions for a smooth transition.

Margin, synergies, and operational strategy

• Margin enhancement targeted at 20-30 basis points per year, driven by productivity, innovation, and cost-out initiatives.

• Combined EBITDA margin expected to reach 18% post-acquisition, with Berry's portfolio contributing higher margins.

• $650 million in synergies targeted over three years: $530 million cost, $60 million revenue, $60 million financial.

• Procurement is the largest synergy driver, with $325 million targeted from a $13 billion spend base.

• Dedicated integration teams by function and synergy area to ensure rapid realization of benefits.