Amcor (AMCR) Q1 2025 earnings summary

Executive summary

• Fiscal 2025 began with solid financial performance, including sequential volume growth for the third consecutive quarter and reaffirmed full-year guidance.

• Net income attributable to shareholders rose 26% to $191 million, with diluted EPS up 26% to $0.132 per share.

• Strategic focus includes safety, customer-centricity, sustainability, and portfolio optimization, with new leadership roles and organizational changes to drive growth and innovation.

• Sustainability remains a core priority, with new initiatives and leadership to accelerate progress and product innovation.

• Both Flexibles and Rigid Packaging segments contributed to growth, supported by cost management and margin improvement.

Financial highlights

• Net sales for Q1 FY2025 were $3.35 billion, down 3% year-over-year, mainly due to unfavorable price/mix and currency impacts, but volumes increased 2%.

• Adjusted EBIT rose 3% to $365 million; adjusted EBIT margin improved by 50 bps to 10.9%.

• Adjusted EPS grew 5% year-over-year to $0.162 per share on a constant currency basis.

• Adjusted free cash outflow was $395 million, higher than last year due to increased inventories and capital expenditure.

• Returned $180 million to shareholders via dividends; quarterly dividend per share increased to 12.75 cents.

Outlook and guidance

• Fiscal 2025 adjusted EPS expected at $0.72–$0.76, representing 3%–8% constant currency growth.

• Adjusted free cash flow guidance reaffirmed at $900–$1,000 million for the year.

• Leverage targeted to be at or below 3.0x by fiscal year-end, down from 3.5x.

• Net interest expense guidance: $290–$305 million; effective tax rate: 18.2%–20%.

• Management expects sequential performance improvement to continue, supported by cost actions and structural initiatives.