Amcor plc Reports 3% Decline in Net Sales, 26% Increase in Net Income for Q3 2024

Amcor plc reported its financial results for the three months ended September 30, 2024, revealing a decrease in net sales to $3,353 million, down from $3,443 million in the same period of 2023, representing a 3% decline. Despite this drop in sales, the company experienced an increase in gross profit, which rose to $659 million from $645 million, and operating income improved to $312 million compared to $270 million in the prior year. Net income attributable to Amcor plc also saw a significant increase, reaching $191 million, up from $152 million, marking a 26% rise. Basic and diluted earnings per share both increased to $0.132 from $0.105.

The company's performance was bolstered by a strong showing in its Flexibles segment, which generated net sales of $2,552 million, only slightly down from $2,568 million in the previous year. Adjusted EBIT for this segment increased by 2% to $329 million. Conversely, the Rigid Packaging segment faced challenges, with net sales declining to $801 million from $875 million, an 8% decrease.

Amcor's total assets increased to $16,910 million as of September 30, 2024, up from $16,524 million at the end of June 2024. Total liabilities also rose to $12,917 million from $12,571 million, while total shareholders' equity increased to $3,993 million from $3,953 million. The company reported cash and cash equivalents of $432 million, down from $588 million as of June 30, 2024.

In terms of strategic developments, Amcor completed the acquisition of a small flexible packaging manufacturer in India for $14 million on September 27, 2023. The company also continued to implement its 2023 Restructuring Plan, which has incurred $162 million in expenses to date, with an expected total cost of approximately $220 million. The restructuring aims to achieve annualized pre-tax benefits of around $50 million by the end of fiscal year 2025.

Amcor's cash flow from operating activities showed a net outflow of $269 million, compared to $135 million in the same period last year, primarily due to higher working capital outflows. The company also reported net cash provided by financing activities of $237 million, an increase from $141 million in the prior year, attributed to higher drawdowns of commercial paper.

The effective tax rate for the quarter decreased to 18.2% from 20.1% in the previous year, primarily due to differences in non-deductible expenses. The company declared a quarterly cash dividend of $0.1275 per share, payable on December 11, 2024.