ZURICH, Nov. 5, 2020 /PRNewswire/ --
Highlights - Three Months Ended September 30, 2020
- GAAP earnings per share (EPS) of 12.6
cents per share, up 207%;
- Adjusted EPS of 15.8 cents per
share, up 20% in constant currency terms;
- Adjusted EBIT of $358 million, up
9% in constant currency terms;
- Bemis acquisition synergies of $20
million delivered in Q1. $100
million delivered on a transaction to date basis;
- Quarterly dividend increased to 11.75
cents per share;
- $150 million share buy-back
announced today, funded by divestment proceeds; and
- Fiscal 2021 outlook for adjusted EPS growth raised to 7-12% in
constant currency terms (previously 5-10%).
Strong start to
the year and outlook for fiscal 2021 raised
|
Amcor's CEO Ron Delia
said: "Amcor's 2021 fiscal year is off to a strong start with
outstanding first quarter financial results ahead of our
expectations. Demand for our products remains resilient and
our teams continue to stay focused and to deliver excellent
operational performance. Both segments delivered strong growth with
Adjusted EBIT increasing 11% in Flexibles and 7% in Rigid
Packaging, in constant currency terms. The outperformance in
the first quarter gives us the confidence to raise our outlook for
fiscal 2021 adjusted EPS growth to 7-12%, increase the dividend and
use divestment proceeds to buy back shares."
"Our flexible
packaging businesses are clearly capitalizing on the strategic and
financial benefits from the transformational Bemis acquisition and
cumulative cost synergies have now reached $100 million. Rigid
Packaging is also building momentum with strong volume growth and
mix in North America as that business continues its own
transformation."
"The Amcor investment
case has never been stronger. In addition to further
acquisition synergies and an attractive dividend currently yielding
more than 4%, organic growth from our consumer and healthcare
exposure should remain resilient and will be enhanced over time
from innovations delivering more sustainable packaging. With a
strong balance sheet and annual free cash flow of over $1 billion,
we also have substantial capacity to reinvest in the business and
to pursue acquisitions."
|
Key Financials(1)
|
|
|
|
|
|
Three Months Ended
September 30,
|
GAAP
results
|
|
|
|
|
|
2019 $
million
|
|
2020 $
million
|
Net sales
|
|
|
|
|
|
3,141
|
|
|
3,097
|
|
Net income
|
|
|
|
|
|
66
|
|
|
198
|
|
EPS (diluted US
cents)
|
|
|
|
|
|
4.1
|
|
|
12.6
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
September 30,
|
|
Reported
∆%
|
|
Constant
Currency
∆%(2)
|
Adjusted non-GAAP
results
|
|
2019 $
million
|
|
2020 $
million
|
|
|
Net sales
|
|
3,141
|
|
|
3,097
|
|
|
(1)
|
%
|
|
2
|
%
|
EBITDA
|
|
441
|
|
|
460
|
|
|
4
|
%
|
|
6
|
%
|
EBIT
|
|
335
|
|
|
358
|
|
|
7
|
%
|
|
9
|
%
|
Net income
|
|
218
|
|
|
247
|
|
|
13
|
%
|
|
15
|
%
|
EPS (diluted US
cents)
|
|
13.4
|
|
|
15.8
|
|
|
18
|
%
|
|
20
|
%
|
Free cash
flow
|
|
(173)
|
|
|
(190)
|
|
|
(10)
|
%
|
|
|
(1) Adjusted
non-GAAP results exclude items which management considers as not
representative of ongoing operations.
|
(2) Constant currency
net sales change compared with prior year excludes a 0.7%
unfavorable currency impact, a 2.6% unfavorable
impact from the pass through of lower raw material costs and a 0.4%
unfavorable impact from divestitures.
|
Note: All
amounts referenced throughout this document are in US dollars
unless otherwise indicated and numbers may not add up
precisely to the totals provided due to
rounding.
|
Bemis cost synergies
The Bemis business was acquired through an all-stock transaction
in June 2019.
The Company delivered approximately $20
million (pre-tax) of incremental cost synergies during the
quarter, with the transaction to date total reaching $100 million. The Company continues
to expect total cost synergies of $180
million (pre-tax) by the end of fiscal 2022, through
overhead, procurement and footprint initiatives.
Shareholder returns
Dividend
The Amcor Board of Directors today declared a quarterly cash
dividend of 11.75 cents per
share. The dividend will be paid in US dollars to holders of
Amcor's ordinary shares trading on the NYSE. Holders of CDIs
trading on the ASX will receive an unfranked dividend of 16.55
Australian cents per share, which reflects the quarterly dividend
of 11.75 cents per share converted at
an average AUD:USD exchange rate of 0.7100 over the five trading
days ended October 30, 2020.
The ex-dividend date will be November 23,
2020, the record date will be November 24, 2020 and the payment date will be
December 15, 2020. Amcor has
received a waiver from the ASX's settlement operating rules, which
will allow the Company to defer processing conversions between its
ordinary share and CDI registers from November 23, 2020 to November 24, 2020, inclusive.
Share buy-back
The Amcor Board of Directors has approved a $150 million buy-back of ordinary shares and
CDIs, which will be funded by divestment proceeds received during
the current period. The Company expects to complete the
buy-back by the end of this fiscal year.
Amcor is committed to an investment grade credit rating and
maintains strong credit metrics. With a strong balance
sheet and significant annual free cash flow, the Company has
substantial capacity to reinvest in the business, pursue
opportunities and maintain an attractive dividend.
Financial results - Three months ended September 30, 2020
Segment information
This quarter, the Company revised the presentation of Adjusted
EBIT in the reportable segments to include an allocation of certain
research and development and selling, general and administrative
expenses that were previously reflected in Other. This change
has no impact on total Amcor Adjusted EBIT. See page 11 for
further information.
|
Three Months Ended
September 30, 2019
|
Three Months Ended
September 30, 2020
|
Adjusted
non-GAAP
results(1)
|
Net sales
$ million
|
EBIT
$ million
|
EBIT /
Sales %
|
EBIT / Average
funds employed
%(2)
|
Net sales
$ million
|
EBIT
$ million
|
EBIT /
Sales %
|
EBIT / Average
funds employed
%(2)
|
Flexibles
|
2,431
|
|
283
|
|
11.6
|
%
|
|
2,400
|
|
312
|
|
13.0
|
%
|
|
Rigid
Packaging
|
711
|
|
69
|
|
9.7
|
%
|
|
698
|
|
72
|
|
10.3
|
%
|
|
Other
|
(1)
|
|
(17)
|
|
|
|
(1)
|
|
(27)
|
|
|
|
Total
Amcor
|
3,141
|
|
335
|
|
10.7
|
%
|
14.1
|
%
|
3,097
|
|
358
|
|
11.6
|
%
|
14.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Adjusted
non-GAAP measures exclude items which management considers as not
representative of ongoing operations. Further details related
to non-GAAP measures and reconciliations to GAAP measures can be
found under "Presentation of non-GAAP financial information" and in
the
tables included in this release.
|
(2) Average funds
employed includes shareholders equity and net debt, calculated
using a four quarter average and LTM adjusted EBIT.
|
Net sales for the Amcor Group of $3,097 million were 2%
higher than last year excluding a combined unfavorable impact of 4%
from currency, the pass through of lower raw material costs and
divested businesses. Overall volumes were 2% higher than the
prior period and price/mix had no material impact on net sales.
Flexibles
|
|
Three Months Ended
September 30,
|
|
Reported
∆%
|
|
Constant
Currency
∆%(1)
|
|
|
2019 $
million
|
|
2020 $
million
|
|
|
Net sales
|
|
2,431
|
|
|
2,400
|
|
|
(1)
|
%
|
|
1
|
%
|
Adjusted
EBIT
|
|
283
|
|
|
312
|
|
|
11
|
%
|
|
11
|
%
|
Adjusted EBIT / Sales
%
|
|
11.6
|
|
|
13.0
|
|
|
|
|
|
(1) Constant currency
net sales change compared with prior year excludes a 0.3%
unfavorable currency impact, a 1.3%
unfavorable impact from the pass through of lower raw material
costs and a 0.5% unfavorable impact from divestitures.
|
Overall segment volumes were 2% higher than the prior year, with
volume growth in North America,
Asia Pacific and Latin America, offset by lower volumes in
Europe.
Volume growth and a 1% unfavorable impact from price/mix mainly
in North America resulted in
overall sales being 1% higher than last year excluding the
unfavorable impacts of currency, the pass through of lower raw
material costs and divested businesses.
In North America, volumes grew
in the mid single digit range, mainly driven by strength in the
meat, cheese, condiments, pet food and home and personal care end
markets as well as specialty folding cartons. This was partly
offset by lower healthcare volumes. In Europe, volumes marginally declined driven by
lower confectionary, yogurt and closure volumes partly offset by
higher volumes in cheese, snacks, pet food and ready meal end
markets as well as specialty folding
cartons.
Volumes were higher across the Asian emerging markets, with mid
single digit and double digit growth in China and India respectively, partly offset by lower
flexible packaging and specialty folding carton volumes in
Indonesia and the
Philippines. In Latin America overall volumes were higher
than the prior period.
Adjusted EBIT of $312 million was
11.4% higher than the prior year in constant currency terms.
This includes organic growth of 4.4%, primarily reflecting higher
volumes and strong cost and operating performance across the
business. The remaining 7.0% earnings growth
reflects $20 million of synergy
benefits related to the Bemis acquisition.
Adjusted EBIT margin of 13.0% compares with 11.6% for the prior
year.
Rigid Packaging
|
|
Three Months Ended
September 30,
|
|
Reported
∆%
|
|
Constant
Currency
∆%(1)
|
|
|
2019 $
million
|
|
2020 $
million
|
|
|
Net sales
|
|
711
|
|
|
698
|
|
|
(2)
|
%
|
|
8
|
%
|
Adjusted
EBIT
|
|
69
|
|
|
72
|
|
|
4
|
%
|
|
7
|
%
|
Adjusted EBIT / Sales
%
|
|
9.7
|
|
|
10.3
|
|
|
|
|
|
(1) Constant currency
net sales change compared with prior year excludes a 2.3%
unfavorable currency
impact and a 7.2% unfavorable impact from the pass through of lower
raw material costs.
|
Overall segment volumes were 4% higher than the prior year, with
volume growth in North America
offset by lower volumes in Latin
America.
Price/mix had a 4% favorable impact and includes pricing to
recover cost inflation in Latin America. Overall sales were
therefore 8% higher than last year excluding the unfavorable
impacts of currency and the pass through of lower raw material
costs.
In North America, beverage
volumes were 7% higher than the prior period with hot fill
container volumes up 12%. There was growth across most
beverage segments, particularly in hot fill sports drinks and
juices, driven by higher consumption of packaged beverage products
and launches of innovative new products in PET containers.
Specialty container volumes were higher than the prior year with
continuing growth in certain categories including spirits, personal
care and home cleaning.
In Latin America, volumes were
3% lower compared with the prior period. Volumes were lower
in Mexico, Peru, Colombia and Argentina and were partially offset by growth
in Central America and
Brazil.
Adjusted EBIT of $72 million was
7.2% higher than the prior year in constant currency terms.
This reflects higher beverage and specialty container volumes,
positive mix and favorable plant costs, partly offset by an
unfavorable impact related to a drawdown of inventories in
North America and lower volumes in
Latin America.
Other
|
|
Three Months Ended
September 30,
|
Adjusted
EBIT
|
|
2019 $
million
|
|
2020 $
million
|
AMVIG (equity
accounted investment, net of tax) (1)
|
|
2
|
|
|
3
|
|
Corporate
expenses
|
|
(19)
|
|
|
(30)
|
|
Total
Other
|
|
(17)
|
|
|
(27)
|
|
(1) As announced on
24 September 2020, Amcor sold its investment in AMVIG. As a
result no further
earnings will be recognized in relation to this
investment.
|
The increase in corporate expenses primarily reflects timing
differences in the current period compared to last year.
Net interest and income tax expense
Net interest expense was $37
million compared with $53
million in the prior period, with the decrease primarily
driven by lower interest rates. Offsetting this, tax expense
(adjusted to exclude amounts related to non-GAAP adjustments) was
$72 million compared with
$62 million in the prior year.
Adjusted tax expense represents an effective tax rate of 22.3%.
Cash flow
Adjusted free cash outflow was $190
million, broadly in line with the prior year notwithstanding
an unfavorable impact of approximately $50
million related to timing of cash tax payments in the US
which were deferred from the fourth quarter of fiscal 2020.
Balance sheet
Net debt was $5,842 million at 30
September 2020. Leverage, measured as net debt divided by
adjusted trailing twelve month EBITDA, was 3.0 times, in line with
Amcor's expectations.
Fiscal 2021 guidance
For the twelve month period ending 30 June 2021, the Company expects:
- Adjusted constant currency EPS growth of approximately 7 to 12%
(previously 5 to 10%), compared with adjusted EPS of 64.2 US cents
per share in fiscal 2020.
- This guidance range includes pre-tax synergy benefits
associated with the Bemis acquisition of approximately $50 to $70
million.
- Assuming current exchange rates prevail for the remainder
of the year, it is estimated that currency would have no material
impact on reported EPS.
- Adjusted free cash flow of approximately $1.0 to $1.1
billion.
Amcor's guidance contemplates a range of factors, including the
COVID-19 pandemic which creates higher degrees of uncertainty and
additional complexity when estimating future financial results.
Amcor's business has demonstrated resilience given it plays
an important role in the supply of essential consumer goods, and
while this is expected to continue, the level of earnings and free
cash flow generated across the business could be impacted by
COVID-19 related factors such as the extent and nature of any
future operational disruptions across the supply chain, government
imposed restrictions on consumer mobility and the pace of
macroeconomic recovery in key global economies. The ultimate
magnitude and duration of the pandemic's future impact on the
business remains uncertain at this time.
Conference Call
Amcor is hosting a conference call with investors and analysts
to discuss these results on Thursday
November 5, 2020 at 5:00pm US
Eastern Standard Time / 9.00am
Australian Eastern Daylight Time. Investors are invited to listen
to a live webcast of the conference call at our website,
www.amcor.com, in the "Investors" section.
Those wishing to access the call should use the following
toll-free numbers, with the Conference ID 3965578:
- US & Canada – 866 211
4133
- Australia – 1800 287 011
- United Kingdom – 0800 051
7107
- Singapore – 800 852 6506
- Hong Kong – 800 901 563
From all other countries, the call can be accessed by dialing +1
647 689 6614 (toll).
A replay of the webcast will also be available in the Investors
section on www.amcor.com following the call.
About Amcor
Amcor is a global leader in developing and producing responsible
packaging for food, beverage, pharmaceutical, medical, home and
personal-care, and other products. Amcor works with leading
companies around the world to protect their products and the people
who rely on them, differentiate brands, and improve supply chains
through a range of flexible and rigid packaging, specialty cartons,
closures, and services. The company is focused on making packaging
that uses less materials, is increasingly recyclable and reusable,
and is made with more recycled content. Around 47,000 Amcor people
generate $12.5 billion in annual
sales from operations that span about 230 locations in 40-plus
countries. NYSE: AMCR; ASX: AMC
www.amcor.com I LinkedIn I Facebook I
Twitter I YouTube
Contact Information
Investors
|
|
|
|
|
Tracey
Whitehead
|
|
Damien
Bird
|
|
|
Head of Investor
Relations
|
|
Vice President
Investor Relations
|
|
|
Amcor
|
|
Amcor
|
|
|
+61 3 9226
9028
|
|
+61 3 9226
9070
|
|
|
tracey.whitehead@amcor.com
|
|
damien.bird@amcor.com
|
|
|
|
|
|
|
|
Media -
Australia
|
|
Media -
Europe
|
|
Media - North
America
|
James
Strong
|
|
Ernesto
Duran
|
|
Daniel
Yunger
|
|
|
Head of Global
Communications
|
|
|
Citadel-MAGNUS
|
|
Amcor
|
|
Kekst CNC
|
+61 448 881
174
|
|
+41 78 698 69
40
|
|
+1 212 521
4879
|
jstrong@citadelmagnus.com
|
|
ernesto.duran@amcor.com
|
|
daniel.yunger@kekstcnc.com
|
Amcor plc UK Establishment Address: 83 Tower Road North,
Warmley, Bristol, England, BS30
8XP, United Kingdom
UK Overseas Company Number: BR020803
Registered Office: 3rd Floor, 44 Esplanade, St Helier, JE4 9WG,
Jersey
Jersey Registered Company Number: 126984, Australian Registered
Body Number (ARBN): 630 385 278
Cautionary Statement Regarding Forward-Looking
Statements
This document contains certain statements that are
"forward-looking statements" within the meaning of the safe harbor
provisions of the U.S. Private Securities Litigation Reform Act of
1995. Forward-looking statements are generally identified with
words like "believe," "expect,", "target", "project", "may,"
"could," "would," "approximately," "possible," "will," "should,"
"expect," "intend," "plan," "anticipate," "estimate," "potential,"
"outlook" or "continue," the negative of these words, other terms
of similar meaning or the use of future dates. Such statements are
based on the current expectations of the management of Amcor and
are qualified by the inherent risks and uncertainties surrounding
future expectations generally. Actual results could differ
materially from those currently anticipated due to a number of
risks and uncertainties. None of Amcor or any of its respective
directors, executive officers or advisors, provide any
representation, assurance or guarantee that the occurrence of the
events expressed or implied in any forward-looking statements will
actually occur. Risks and uncertainties that could cause actual
results to differ from expectations include, but are not limited
to: the continued financial and operational impacts of the
COVID-19 pandemic on Amcor and its customers, suppliers, employees
and the geographic markets in which it and its customers operate;
fluctuations in consumer demand patterns; the loss of key customers
or a reduction in production requirements of key customers;
significant competition in the industries and regions in which
Amcor operates; failure to realize the anticipated benefits of the
acquisition of Bemis Company, Inc. ("Bemis"), and the cost
synergies related thereto; failure to successfully integrate Bemis'
business and operations in the expected time frame or at all;
integration costs related to the acquisition of Bemis; failure by
Amcor to expand its business; the potential loss of intellectual
property rights; various risks that could affect our business
operations and financial results due to the international
operations; price fluctuations or shortages in the availability of
raw materials, energy and other inputs; disruptions to production,
supply and commercial risks, including counterparty credit risks,
which may be exacerbated in times of economic downturn; the
possibility of labor disputes; fluctuations in our credit ratings;
disruptions to the financial or capital markets; and other risks
and uncertainties identified from time to time in Amcor's filings
with the U.S. Securities and Exchange Commission (the "SEC"),
including without limitation, those described under Item 1A. "Risk
Factors" of Amcor's annual report on Form 10-K for the fiscal year
ended June 30, 2020. You can obtain
copies of Amcor's filings with the SEC for free at the SEC's
website (www.sec.gov). Forward-looking statements included herein
are made only as of the date hereof and Amcor does not undertake
any obligation to update any forward-looking statements, or any
other information in this communication, as a result of new
information, future developments or otherwise, or to correct any
inaccuracies or omissions in them which become apparent, except as
expressly required by law. All forward-looking statements in this
communication are qualified in their entirety by this cautionary
statement.
Presentation of non-GAAP financial information
Included in this release are measures of financial performance
that are not calculated in accordance with U.S. GAAP. These
measures include adjusted EBIT (calculated as earnings before
interest and tax), adjusted net income, adjusted earnings per
share, adjusted free cash flow and net debt. In arriving at
these non-GAAP measures, we exclude items that either have a
non-recurring impact on the income statement or which, in the
judgment of our management, are items that, either as a result of
their nature or size, could, were they not singled out, potentially
cause investors to extrapolate future performance from an improper
base. While not all inclusive, examples of these items include:
- material restructuring programs, including associated costs
such as employee severance, pension and related benefits,
impairment of property and equipment and other assets, accelerated
depreciation, termination payments for contracts and leases,
contractual obligations and any other qualifying costs related to
the restructuring plan;
- earnings from discontinued operations and any associated profit
or loss on sale of businesses or subsidiaries;
- consummated and identifiable divestitures agreed to with
certain regulatory agencies as a condition of approval for Amcor's
acquisition of Bemis;
- impairments in goodwill and equity method investments;
- material acquisition compensation and transaction costs such as
due diligence expenses, professional and legal fees and integration
costs;
- material purchase accounting adjustments for inventory;
- amortization of acquired intangible assets from business
combinations;
- payments or settlements related to legal claims; and
- impacts from hyperinflation accounting.
Management has used and uses these measures internally for
planning, forecasting and evaluating the performance of the
company's reporting segments and certain of the measures are used
as a component of Amcor's board of directors' measurement of
Amcor's performance for incentive compensation purposes. Amcor also
evaluates performance on a constant currency basis, which measures
financial results assuming constant foreign currency exchange rates
used for translation based on the rates in effect for the
comparable prior-year period. In order to compute constant currency
results, we multiply or divide, as appropriate, current-year U.S.
dollar results by the current-year average foreign exchange rates
and then multiply or divide, as appropriate, those amounts by the
prior-year average foreign exchange rates. Amcor believes that
these non-GAAP measures are useful to enable investors to perform
comparisons of current and historical performance of the company.
For each of these non-GAAP financial measures, a reconciliation to
the most directly comparable U.S. GAAP financial measure has been
provided herein. These non-GAAP financial measures should not be
construed as an alternative to results determined in accordance
with U.S. GAAP. The company provides guidance on a
non-GAAP basis as we are unable to predict with reasonable
certainty the ultimate outcome and timing of certain significant
items without unreasonable effort. These items include but
are not limited to the impact of foreign exchange translation,
restructuring program costs, asset impairments and possible gains
and losses on the sale of assets. These items are uncertain,
depend on various factors and could have a material impact on U.S.
GAAP earnings and cash flow measures for the guidance period.
U.S. GAAP
Condensed Consolidated Statement of Income
(Unaudited)
|
|
|
|
|
|
|
|
Three Months Ended
September 30,
|
($
million)
|
|
2019
|
|
2020
|
Net sales
|
|
3,141
|
|
|
3,097
|
|
Cost of
sales
|
|
(2,594)
|
|
|
(2,443)
|
|
Gross
profit
|
|
547
|
|
|
654
|
|
Selling, general and
administrative expenses
|
|
(371)
|
|
|
(329)
|
|
Research and
development expenses
|
|
(26)
|
|
|
(26)
|
|
Restructuring and
related expenses
|
|
(18)
|
|
|
(23)
|
|
Other income,
net
|
|
9
|
|
|
—
|
|
Operating
income
|
|
141
|
|
|
276
|
|
Interest expense,
net
|
|
(53)
|
|
|
(37)
|
|
Other non-operating
income (loss), net
|
|
8
|
|
|
3
|
|
Income from
continuing operations before income taxes and equity in income
(loss) of affiliated companies
|
|
96
|
|
|
242
|
|
Income tax
expense
|
|
(22)
|
|
|
(61)
|
|
Equity in income
(loss) of affiliated companies, net of tax
|
|
2
|
|
|
19
|
|
Income from
continuing operations
|
|
76
|
|
|
200
|
|
Income (loss) from
discontinued operations, net of tax(1)
|
|
(8)
|
|
|
—
|
|
Net income
|
|
68
|
|
|
200
|
|
Net (income) loss
attributable to non-controlling interests
|
|
(2)
|
|
|
(2)
|
|
Net income
attributable to Amcor plc
|
|
66
|
|
|
198
|
|
USD:EUR FX
rate
|
|
0.8991
|
|
|
0.8558
|
|
|
|
|
|
|
Basic earnings per
share attributable to Amcor
|
|
0.041
|
|
|
0.127
|
|
Diluted earnings per
share attributable to Amcor
|
|
0.041
|
|
|
0.126
|
|
Weighted average
number of shares outstanding – Basic
|
|
1,623
|
|
|
1,561
|
|
Weighted average
number of shares outstanding - Diluted
|
|
1,626
|
|
|
1,565
|
|
(1) Represents
income/(loss) generated from three former Bemis plants located in
the United Kingdom and Ireland from July 1, 2019 to August 8,
2019.
Amcor announced the disposal of these assets to Kohlberg &
Company on June 25, 2019. This divestment was required by the
European Commission at
the time of approving Amcor's acquisition of Bemis on February 11,
2019.
|
U.S. GAAP
Condensed Consolidated Statement of Cash Flows
(Unaudited)
|
|
|
|
|
|
|
Three Months Ended
September 30,
|
($
million)
|
|
2019
|
|
2020
|
Net income
|
|
68
|
|
|
200
|
|
Depreciation,
amortization and impairment
|
|
184
|
|
|
145
|
|
Changes in operating
assets and liabilities
|
|
(348)
|
|
|
(439)
|
|
Other non-cash
items
|
|
7
|
|
|
(16)
|
|
Net cash provided
from operating activities
|
|
(89)
|
|
|
(110)
|
|
Purchase of property,
plant and equipment and other intangible assets
|
|
(115)
|
|
|
(114)
|
|
Proceeds from sale of
property, plant and equipment and other intangible
assets
|
|
2
|
|
|
3
|
|
Proceeds from
divestiture
|
|
397
|
|
|
138
|
|
Net debt (repayments)
proceeds
|
|
(237)
|
|
|
258
|
|
Dividends
paid
|
|
(1)
|
|
|
(188)
|
|
Share
buy-back
|
|
(58)
|
|
|
—
|
|
Other, including
effects of exchange rate on cash and cash equivalents
|
|
(20)
|
|
|
27
|
|
Net (decrease)
increase in cash and cash equivalents
|
|
(122)
|
|
|
14
|
|
Cash and cash
equivalents at the beginning of the period
|
|
602
|
|
|
743
|
|
Cash and cash
equivalents at the end of the period
|
|
480
|
|
|
757
|
|
U.S. GAAP
Condensed Consolidated Balance Sheet (Unaudited)
|
|
($
million)
|
|
June 30,
2020
|
|
September 30,
2020
|
Cash and cash
equivalents
|
|
743
|
|
|
757
|
|
Trade receivables,
net
|
|
1,616
|
|
|
1,673
|
|
Inventories,
net
|
|
1,832
|
|
|
1,784
|
|
Property, plant and
equipment, net
|
|
3,615
|
|
|
3,649
|
|
Goodwill and other
intangible assets, net
|
|
7,334
|
|
|
7,333
|
|
Other
assets
|
|
1,303
|
|
|
1,270
|
|
Total
assets
|
|
16,442
|
|
|
16,465
|
|
Trade
payables
|
|
2,171
|
|
|
1,808
|
|
Short-term debt and
current portion of long-term debt
|
|
206
|
|
|
238
|
|
Long-term debt, less
current portion
|
|
6,028
|
|
|
6,361
|
|
Accruals and other
liabilities
|
|
3,350
|
|
|
3,314
|
|
Shareholders
equity
|
|
4,687
|
|
|
4,744
|
|
Total liabilities and
shareholders equity
|
|
16,442
|
|
|
16,465
|
|
Reconciliation of
Non-GAAP Measures
|
Reconciliation of
adjusted Earnings before interest, tax, depreciation and
amortization (EBITDA), Earnings before interest and tax (EBIT), Net
income and Earnings
per share (EPS)
|
|
|
|
Three Months Ended
September 30, 2019
|
|
Three Months Ended
September 30, 2020
|
($
million)
|
|
EBITDA
|
|
EBIT
|
|
Net
Income
|
|
EPS
(Diluted
US
cents)
|
|
EBITDA
|
|
EBIT
|
|
Net
Income
|
|
EPS
(Diluted
US
cents)
|
Net income
attributable to Amcor
|
|
66
|
|
|
66
|
|
|
66
|
|
|
4.1
|
|
|
198
|
|
|
198
|
|
|
198
|
|
|
12.6
|
|
Net income
attributable to non-controlling
interests
|
|
2
|
|
|
2
|
|
|
|
|
|
|
2
|
|
|
2
|
|
|
|
|
|
(Income) loss from
discontinued operations
|
|
8
|
|
|
8
|
|
|
8
|
|
|
0.4
|
|
|
—
|
|
|
—
|
|
|
|
|
|
Tax
expense
|
|
22
|
|
|
22
|
|
|
|
|
|
|
61
|
|
|
61
|
|
|
|
|
|
Interest expense,
net
|
|
53
|
|
|
53
|
|
|
|
|
|
|
37
|
|
|
37
|
|
|
|
|
|
Depreciation and
amortization
|
|
174
|
|
|
|
|
|
|
|
|
143
|
|
|
|
|
|
|
|
EBITDA, EBIT, Net
income and EPS
|
|
325
|
|
|
151
|
|
|
74
|
|
|
4.5
|
|
|
441
|
|
|
298
|
|
|
198
|
|
|
12.6
|
|
Material
restructuring and related costs
|
|
17
|
|
|
17
|
|
|
17
|
|
|
1.1
|
|
|
14
|
|
|
14
|
|
|
14
|
|
|
0.9
|
|
Net gain on
disposals(1)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(9)
|
|
|
(9)
|
|
|
(9)
|
|
|
(0.6)
|
|
Material transaction
and other costs(2)
|
|
84
|
|
|
84
|
|
|
84
|
|
|
5.2
|
|
|
9
|
|
|
9
|
|
|
9
|
|
|
0.6
|
|
Material impact of
hyperinflation
|
|
15
|
|
|
15
|
|
|
15
|
|
|
0.9
|
|
|
4
|
|
|
4
|
|
|
4
|
|
|
0.3
|
|
Amortization of
acquired intangibles(3)
|
|
|
|
68
|
|
|
68
|
|
|
4.2
|
|
|
|
|
41
|
|
|
41
|
|
|
2.6
|
|
Tax effect of above
items
|
|
|
|
|
|
(40)
|
|
|
(2.5)
|
|
|
|
|
|
|
(10)
|
|
|
(0.6)
|
|
Adjusted EBITDA,
EBIT, Net income and EPS
|
|
441
|
|
|
335
|
|
|
218
|
|
|
13.4
|
|
|
460
|
|
|
358
|
|
|
247
|
|
|
15.8
|
|
(1) Includes $15
million gain realised upon disposal of AMVIG and losses on disposal
of other non-core businesses.
|
(2) Includes costs
associated with the Bemis acquisition. The three months ended
September 30, 2019 includes $58 million of acquisition related
inventory fair value step-up costs.
|
(3) The three months
ended September 30, 2019 includes $26 million of sales backlog
amortization related to the Bemis acquisition.
|
Reconciliation of
adjusted EBIT by reporting segment
|
|
|
|
Three Months Ended
September 30, 2019
|
|
Three Months Ended
September 30, 2020
|
($
million)
|
|
Flexibles
|
|
Rigid
Packaging
|
|
Other(1)
|
|
Total
|
|
Flexibles
|
|
Rigid
Packaging
|
|
Other(1)
|
|
Total
|
Net income
attributable to Amcor
|
|
|
|
|
|
|
|
66
|
|
|
|
|
|
|
|
|
198
|
|
Net income
attributable to non-
controlling interests
|
|
|
|
|
|
|
|
2
|
|
|
|
|
|
|
|
|
2
|
|
(Income) loss from
discontinued
operations
|
|
|
|
|
|
|
|
8
|
|
|
|
|
|
|
|
|
—
|
|
Tax
expense
|
|
|
|
|
|
|
|
22
|
|
|
|
|
|
|
|
|
61
|
|
Interest expense,
net
|
|
|
|
|
|
|
|
53
|
|
|
|
|
|
|
|
|
37
|
|
EBIT
|
|
135
|
|
|
48
|
|
|
(33)
|
|
|
151
|
|
|
258
|
|
|
58
|
|
|
(17)
|
|
|
298
|
|
Material
restructuring and related
costs
|
|
14
|
|
|
3
|
|
|
—
|
|
|
17
|
|
|
6
|
|
|
8
|
|
|
1
|
|
|
14
|
|
Net gain on
disposals(2)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6
|
|
|
—
|
|
|
(15)
|
|
|
(9)
|
|
Material transaction
and other
costs(3)
|
|
67
|
|
|
1
|
|
|
16
|
|
|
84
|
|
|
3
|
|
|
1
|
|
|
5
|
|
|
9
|
|
Material impact of
hyperinflation
|
|
—
|
|
|
15
|
|
|
—
|
|
|
15
|
|
|
—
|
|
|
4
|
|
|
—
|
|
|
4
|
|
Amortization of
acquired
intangibles(4)
|
|
67
|
|
|
1
|
|
|
—
|
|
|
68
|
|
|
40
|
|
|
1
|
|
|
—
|
|
|
41
|
|
Adjusted
EBIT
|
|
283
|
|
|
69
|
|
|
(17)
|
|
|
335
|
|
|
312
|
|
|
72
|
|
|
(27)
|
|
|
358
|
|
Adjusted EBIT /
sales %
|
|
11.6
|
%
|
|
9.7
|
%
|
|
|
|
10.7
|
%
|
|
13.0
|
%
|
|
10.3
|
%
|
|
|
|
11.6
|
%
|
(1) Other includes
equity in income (loss) of affiliated companies, net of tax and
general corporate expenses.
|
(2) Includes $15
million gain realised upon disposal of AMVIG and losses on disposal
of other non-core businesses.
|
(3) Includes costs
associated with the Bemis acquisition. The three months ended
September 30, 2019 includes $58 million of acquisition related
inventory fair value step-up costs.
|
(4) The three months
ended September 30, 2019 includes $26 million of sales backlog
amortization related to the Bemis acquisition.
|
Reconciliations of
adjusted free cash flow
|
|
|
|
|
|
|
|
Three Months Ended
September 30,
|
($
million)
|
|
2019
|
|
2020
|
Net cash provided
from operating activities
|
|
(89)
|
|
|
(110)
|
|
Purchase of property,
plant and equipment and other intangible assets
|
|
(115)
|
|
|
(114)
|
|
Proceeds from sale of
property, plant and equipment and other intangible
assets
|
|
2
|
|
|
3
|
|
Operating cash flow
related to divested operations
|
|
(32)
|
|
|
—
|
|
Material transaction
and integration related costs(1)
|
|
62
|
|
|
31
|
|
Adjusted free cash
flow(2)
|
|
(173)
|
|
|
(190)
|
|
(1) The three months
ended September 30, 2020 and 2019 includes cash restructuring and
integration costs of approximately
$18 million in both years.
|
(2) Adjusted free
cash flow excludes material transaction related costs because these
cash flows are not considered to be directly
related to the underlying business.
|
|
|
Three Months Ended
September 30,
|
($
million)
|
|
2019
|
|
2020
|
Adjusted
EBITDA
|
|
441
|
|
|
460
|
|
Interest paid,
net
|
|
(39)
|
|
|
(18)
|
|
Income tax
paid
|
|
(54)
|
|
|
(107)
|
|
Purchase of property,
plant and equipment and other intangible assets
|
|
(115)
|
|
|
(114)
|
|
Proceeds from sale of
property, plant and equipment and other intangible
assets
|
|
2
|
|
|
3
|
|
Movement in working
capital
|
|
(386)
|
|
|
(416)
|
|
Other
|
|
(23)
|
|
|
3
|
|
Adjusted free cash
flow(1)
|
|
(173)
|
|
|
(190)
|
|
(1) Adjusted free
cash flow excludes material transaction related costs because these
cash flows are not considered to be directly
related to the underlying business.
|
Reconciliation of
net debt
|
|
($
million)
|
|
June 30,
2020
|
|
September 30,
2020
|
Cash and cash
equivalents
|
|
(743)
|
|
|
(757)
|
|
Short-term
debt
|
|
195
|
|
|
225
|
|
Current portion of
long-term debt
|
|
11
|
|
|
13
|
|
Long-term debt
excluding current portion of long-term debt
|
|
6,028
|
|
|
6,361
|
|
Net
debt
|
|
5,492
|
|
|
5,842
|
|
Historical adjusted EBIT by reporting segment
During the first quarter of fiscal 2021, the Company has revised
the presentation of the reportable segments Adjusted EBIT to
include an allocation of certain research and development and
selling, general and administrative expenses that management
previously reflected in Other. The Company refines its expense
allocation methodologies to the reportable segments periodically as
more refined information becomes available and to align with
industry or market changes. Corporate expenses are allocated to the
reportable segments based primarily on direct attribution.
Prior periods have been recast to conform to the new cost
allocation methodology.
($
million)
|
|
|
Three Months
Ended
September 30,
2019
|
|
Six Months
Ended
December 31,
2019
|
|
Nine Months
Ended March
31, 2020
|
|
Year Ended
June 30, 2020
|
Flexibles adjusted
EBIT
|
|
|
283
|
|
|
602
|
|
|
919
|
|
|
1,296
|
|
Flexibles adjusted EBIT
margin
|
|
11.6
|
12.4
|
12.6
|
13.3
|
|
|
|
|
|
|
|
|
|
|
Rigid Packaging
adjusted EBIT
|
|
|
69
|
|
|
127
|
|
|
197
|
|
|
284
|
|
Rigid Packaging adjusted
EBIT margin
|
|
9.7
|
9.5
|
9.6
|
10.4
|
|
|
|
|
|
|
|
|
|
|
Other adjusted
EBIT
|
|
|
(17)
|
|
|
(31)
|
|
|
(57)
|
|
|
(83)
|
|
AMVIG (equity accounted
investment, net of tax)
|
|
2
|
4
|
8
|
12
|
Corporate expenses
|
|
(19)
|
|
(35)
|
(65)
|
|
(95)
|
|
Adjusted
EBIT
|
|
|
335
|
|
|
699
|
|
|
1,059
|
|
|
1,497
|
|
View original
content:http://www.prnewswire.com/news-releases/amcor-reports-strong-first-quarter-results-and-raises-outlook-for-fiscal-2021-301166889.html
SOURCE Amcor