ZURICH, Feb. 2, 2021 /PRNewswire/ --
Highlights - Six Months Ended December
31, 2020
- GAAP Net Income of $417 million,
up 65%; GAAP earnings per share (EPS) of 26.5 cents per share, up 71%;
- Adjusted EPS of 33.3 cents per
share, up 16% in constant currency terms;
- Adjusted EBIT of $743 million, up
8% in constant currency terms;
- $35 million Bemis cost synergies
in H1; expect approximately $70
million (previously $50-$70 million) in
FY21;
- A further $200 million of share
repurchases approved bringing the total announced in fiscal 2021 to
$350 million;
- Quarterly dividend higher than last year at 11.75 cents per share; and
- Fiscal 2021 outlook for adjusted EPS growth raised to 10-14% in
constant currency terms (previously 7-12%).
Strong First Half
and Increased Guidance and Shareholder Returns for Fiscal
2021
|
Amcor's CEO Ron Delia
said: "Amcor delivered strong financial results ahead of our
expectations for the first half and we have raised the outlook for
the full year as our teams continue to demonstrate resilience and
outstanding execution."
"Sales growth of 3%
was balanced across our businesses and regions, cost performance
has been strong and synergies from the Bemis acquisition are
running ahead of schedule. We have built momentum in both
operating segments resulting in Adjusted EBIT growth of 9% in
Flexibles and 10% in Rigid Packaging in constant currency terms.
That momentum translates into higher expectations for the full year
with Adjusted EPS growth now forecast at 10-14% in constant
currency terms as well as an increased dividend and additional
share repurchases."
"Amcor's investment
case remains as strong as ever. We are well positioned to continue
generating growth from attractive consumer and healthcare end
markets, our leadership and scale in emerging markets and our
extensive innovation capabilities. With annual free cash flow of
more than $1 billion, we have substantial capacity to create value
for shareholders by reinvesting in the business, pursuing
acquisitions, and returning capital through a compelling and
growing dividend and share repurchases."
|
Key Financials(1)
|
|
|
|
|
|
Half Year Ended
December 31,
|
GAAP
results
|
|
|
|
|
|
2019 $
million
|
|
2020 $
million
|
Net sales
|
|
|
|
|
|
6,184
|
|
|
6,200
|
|
Net income
|
|
|
|
|
|
252
|
|
|
417
|
|
EPS (diluted US
cents)
|
|
|
|
|
|
15.5
|
|
|
26.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Constant
Currency ∆%
|
|
|
Half Year Ended
December 31,
|
|
Reported
∆%
|
|
Adjusted non-GAAP
results
|
|
2019 $
million
|
|
2020 $
million
|
|
|
Net
sales(2)
|
|
6,184
|
|
|
6,200
|
|
|
—
|
%
|
|
3
|
%
|
EBITDA
|
|
911
|
|
|
948
|
|
|
4
|
%
|
|
5
|
%
|
EBIT
|
|
699
|
|
|
743
|
|
|
6
|
%
|
|
8
|
%
|
Net income
|
|
473
|
|
|
522
|
|
|
10
|
%
|
|
12
|
%
|
EPS (diluted US
cents)
|
|
29.2
|
|
|
33.3
|
|
|
14
|
%
|
|
16
|
%
|
Free cash
flow
|
|
310
|
|
|
276
|
|
|
(11)
|
%
|
|
|
|
(1) Adjusted non-GAAP
results 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) Constant Currency
∆% for Net sales excludes 2% unfavorable impact from the pass
through of lower raw material costs.
|
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.
Amcor has continued to execute well against overhead,
procurement and footprint initiatives and delivered approximately
$35 million (pre-tax) of incremental
cost synergies during the first half. Of this amount,
approximately $30 million was
recognized in the Flexibles segment and $5
million in Other.
As a result of this strong progress, Amcor expects to deliver
incremental cost synergy benefits of approximately $70 million (pre-tax) in fiscal 2021 (previously
$50 to $70
million (pre-tax)). Combined with the $80 million delivered in fiscal 2020, this will
result in cumulative cost synergies of $150
million (pre-tax) by the end of fiscal 2021 and leaves the
business well positioned to deliver total cost synergies of
$180 million by the end of fiscal
2022.
Shareholder returns
Dividend
The Amcor Board of Directors today declared a quarterly cash
dividend of 11.75 cents per share
(compared with 11.5 cents per share
in the same quarter last year). 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 15.21 Australian cents per share, which
reflects the quarterly dividend of 11.75
cents per share converted at an AUD:USD average exchange
rate of 0.7724 over the five trading days ended January 28, 2021.
The ex-dividend date will be February 23,
2021, the record date will be February 24, 2021 and the payment date will be
March 16, 2021.
Share repurchases
Amcor is committed to an investment grade credit rating,
maintains strong credit metrics and generates significant annual
free cash flow. This provides substantial capacity to
simultaneously reinvest in the business, pursue acquisitions and
return cash to shareholders through a compelling and growing
dividend as well as share repurchases.
The Amcor Board of Directors has approved the repurchase of a
further $200 million of ordinary
shares and CDIs, bringing the total approved in fiscal 2021 to
$350 million.
During the first half of fiscal 2021, Amcor repurchased 6.5
million shares, resulting in a 0.4% reduction in the total number
of shares issued and outstanding.
Financial results - Half Year ended December 31, 2020
Segment information
|
Half Year Ended
December 31, 2019
|
Half Year Ended
December 31, 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
|
4,846
|
|
602
|
|
12.4
|
%
|
|
4,850
|
|
653
|
|
13.5
|
%
|
|
Rigid
Packaging
|
1,340
|
|
127
|
|
9.5
|
%
|
|
1,352
|
|
134
|
|
9.9
|
%
|
|
Other
|
(2)
|
|
(30)
|
|
|
|
(2)
|
|
(45)
|
|
|
|
Total
Amcor
|
6,184
|
|
699
|
|
11.3
|
%
|
13.8
|
%
|
6,200
|
|
743
|
|
12.0
|
%
|
14.6
|
%
|
|
(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.
|
First half net sales for the Amcor Group of $6,200 million
were 3% higher than the same period last year excluding a combined
unfavorable impact of currency and the pass through of lower raw
material costs. Overall volumes were 3% higher than the prior
period and price/mix had no material impact on net sales.
Flexibles
|
|
|
|
|
|
|
|
Constant
Currency ∆%
|
|
Half Year Ended
December 31,
|
|
Reported
∆%
|
|
|
|
2019 $
million
|
|
2020 $
million
|
|
|
Net
sales(1)
|
|
4,846
|
|
|
4,850
|
|
|
—
|
%
|
|
1
|
%
|
Adjusted
EBIT
|
|
602
|
|
|
653
|
|
|
8
|
%
|
|
9
|
%
|
Adjusted EBIT / Sales
%
|
|
12.4
|
|
|
13.5
|
|
|
|
|
|
|
(1) Constant Currency
∆% for Net sales excludes a 1% unfavorable impact from the pass
through of lower raw material costs.
|
Overall first half segment volumes were 2% higher than the same
period last year. All geographic regions delivered volume
growth and by end market, growth in food, pet food and beverage was
partially offset by lower volumes in certain healthcare end markets
driven by reduced elective surgery rates and lower prescription
trends.
Volume growth and a 1% unfavorable impact from price/mix
resulted in overall sales being 1% higher than the prior period
excluding a net unfavorable impact of currency and the pass through
of lower raw material costs.
In North America, volumes grew
in the mid single digit range, mainly driven by strength in the
meat, frozen food, liquid beverage, 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, growth strengthened through the half
year and overall low single digit volume growth was driven by
higher volumes in cheese, snacks, coffee, pet food and ready meal
end markets partly offset by lower confectionary, yogurt and
healthcare volumes.
Flexible packaging volumes grew at mid single digit rates across
the Asian emerging markets, with mid single digit and double digit
growth in China and India respectively, partly offset by lower
volumes in South East Asia. In Latin America overall volumes
grew in the low single digit range compared with the prior
period.
Adjusted EBIT for the first half of $653
million was 9% higher than the prior period in constant
currency terms. This includes organic growth of 4%, primarily
reflecting higher volumes and strong cost and operating performance
across the business. The remaining 5% earnings growth
reflects $30 million of synergy
benefits related to the Bemis acquisition.
Adjusted EBIT margin of 13.5% compares with 12.4% for the prior
period.
Rigid
Packaging
|
|
|
|
|
|
|
|
Constant
Currency ∆%
|
|
Half Year Ended
December 31,
|
|
Reported
∆%
|
|
|
|
2019 $
million
|
|
2020 $
million
|
|
|
Net
sales(1)
|
|
1,340
|
|
|
1,352
|
|
|
1
|
%
|
|
10
|
%
|
Adjusted
EBIT
|
|
127
|
|
|
134
|
|
|
6
|
%
|
|
10
|
%
|
Adjusted EBIT / Sales
%
|
|
9.5
|
|
|
9.9
|
|
|
|
|
|
|
(1) Constant Currency
∆% for Net sales excludes a 7% unfavorable impact from the pass
through of lower raw material costs.
|
Overall first half segment volumes were 6% higher than the same
period last year, with volume growth in North America partially offset by marginally
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 10% higher than the prior period excluding the
unfavorable impacts of currency and the pass through of lower raw
material costs.
In North America, beverage
volumes were 9% higher than the prior period with hot fill
container volumes up 19%. There has been strong consumer
demand across all beverage segments, particularly in hot fill
juices as well as hot fill sports drinks where Amcor also benefited
from favorable customer mix. Strong consumer demand reflects
higher at home consumption of packaged beverages supported by
higher retail sales in multi-pack formats across a range of
segments. Growth was also driven by several launches of brand
extensions and new health and wellness oriented products in PET
containers. Specialty container volumes were also higher than
the prior period with continuing growth in certain categories
including spirits, personal care and home cleaning.
In Latin America, volumes were
marginally lower than the prior period. Month to month
volumes remain variable, however trends generally strengthened
through the half year. Volumes were higher in Brazil, Central
America and Argentina, offset by lower volumes across the
rest of the region.
Adjusted EBIT for the first half of $134
million was 10% higher than the prior period in constant
currency terms, reflecting positive mix across the business and
higher volumes in North America
partly offset by increased labor and transportation costs to
service higher demand and lower volumes in Latin America.
Other
|
|
Half Year Ended
December 31,
|
Adjusted
EBIT
|
|
2019 $
million
|
|
2020 $
million
|
AMVIG (equity
accounted investment, net of tax) (1)
|
|
5
|
|
|
3
|
|
Corporate
expenses
|
|
(35)
|
|
|
(48)
|
|
Total
Other
|
|
(30)
|
|
|
(45)
|
|
|
(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.
|
Net interest and income tax expense
First half net interest expense was $70
million compared with $99
million in the same period last year, with the decrease
primarily driven by lower interest rates on floating rate
debt. Offsetting this, first half tax expense (adjusted to
exclude amounts related to non-GAAP adjustments) was $145 million compared with $123 million in the same period last year.
Adjusted tax expense represents an effective tax rate of 21.5% in
the current period.
Cash flow
First half adjusted free cash flow was $276 million. Excluding 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, free cash flow was
higher than the same period last year.
Balance sheet
Net debt was $5,730 million at 31
December 2020. Leverage, measured as net debt divided by
adjusted trailing twelve month EBITDA, was 2.9 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 10 to
14% (previously 7 to 12%), compared with adjusted EPS of 64.2 US
cents per share in fiscal 2020.
- This includes pre-tax synergy benefits associated with the Bemis
acquisition of approximately $70
million (previously $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 a higher degree of uncertainty and
additional complexity when estimating future financial results.
Amcor's business has demonstrated resilience given that it
plays an important role in the supply of essential consumer goods.
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 Tuesday February
2, 2021 at 5:30pm US Eastern
Standard Time / Wednesday February 3,
9.30am 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 8641389:
- 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
|
|
|
Global 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 our 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 and any
subsequent quarterly reports on Form 10-Q. 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. Constant currency net
sales performance also excludes the impact from passing through
movements in raw material costs. 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 forward-looking
items without unreasonable effort. These items include but
are not limited to the impact of foreign exchange translation,
restructuring program costs, asset impairments, possible gains and
losses on the sale of assets and certain tax related events.
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.
Dividends
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 February 23, 2021 to February 24, 2021 inclusive.
U.S. GAAP
Condensed Consolidated Statement of Income
(Unaudited)
|
|
|
|
Three Months Ended
December 31,
|
|
Half Year Ended
December 31,
|
($
million)
|
|
2019
|
|
2020
|
|
2019
|
|
2020
|
Net sales
|
|
3,043
|
|
|
3,103
|
|
|
6,184
|
|
|
6,200
|
|
Cost of
sales
|
|
(2,426)
|
|
|
(2,452)
|
|
|
(5,020)
|
|
|
(4,895)
|
|
Gross
profit
|
|
617
|
|
|
651
|
|
|
1,164
|
|
|
1,305
|
|
Selling, general and
administrative expenses
|
|
(309)
|
|
|
(308)
|
|
|
(680)
|
|
|
(637)
|
|
Research and
development expenses
|
|
(23)
|
|
|
(23)
|
|
|
(49)
|
|
|
(49)
|
|
Restructuring and
related expenses
|
|
(24)
|
|
|
(23)
|
|
|
(42)
|
|
|
(46)
|
|
Other income,
net
|
|
11
|
|
|
10
|
|
|
20
|
|
|
10
|
|
Operating
income
|
|
272
|
|
|
307
|
|
|
413
|
|
|
583
|
|
Interest expense,
net
|
|
(46)
|
|
|
(33)
|
|
|
(99)
|
|
|
(70)
|
|
Other non-operating
income (loss), net
|
|
4
|
|
|
3
|
|
|
12
|
|
|
6
|
|
Income from
continuing operations before income taxes and
equity in income (loss) of affiliated companies
|
|
230
|
|
|
277
|
|
|
326
|
|
|
519
|
|
Income tax
expense
|
|
(45)
|
|
|
(55)
|
|
|
(67)
|
|
|
(116)
|
|
Equity in income
(loss) of affiliated companies, net of tax
|
|
3
|
|
|
—
|
|
|
5
|
|
|
19
|
|
Income from
continuing operations
|
|
188
|
|
|
222
|
|
|
264
|
|
|
422
|
|
Income (loss) from
discontinued operations, net of tax(1)
|
|
—
|
|
|
—
|
|
|
(8)
|
|
|
—
|
|
Net income
|
|
188
|
|
|
222
|
|
|
256
|
|
|
422
|
|
Net (income) loss
attributable to non-controlling interests
|
|
(2)
|
|
|
(3)
|
|
|
(4)
|
|
|
(5)
|
|
Net income
attributable to Amcor plc
|
|
186
|
|
|
219
|
|
|
252
|
|
|
417
|
|
USD:EUR FX
rate
|
|
0.8991
|
|
|
0.8558
|
|
|
0.9013
|
|
|
0.8473
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per
share attributable to Amcor
|
|
0.115
|
|
|
0.140
|
|
|
0.155
|
|
|
0.267
|
|
Diluted earnings per
share attributable to Amcor
|
|
0.115
|
|
|
0.139
|
|
|
0.155
|
|
|
0.265
|
|
Weighted average
number of shares outstanding – Basic
|
|
1,613
|
|
|
1,560
|
|
|
1,618
|
|
|
1,560
|
|
Weighted average
number of shares outstanding - Diluted
|
|
1,615
|
|
|
1,570
|
|
|
1,620
|
|
|
1,568
|
|
|
(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)
|
|
|
|
Half Year Ended
December 31,
|
($
million)
|
|
2019
|
|
2020
|
Net income
|
|
256
|
|
|
422
|
|
Depreciation,
amortization and impairment
|
|
332
|
|
|
287
|
|
Changes in operating
assets and liabilities
|
|
(192)
|
|
|
(253)
|
|
Other non-cash
items
|
|
(54)
|
|
|
(14)
|
|
Net cash provided
from operating activities
|
|
342
|
|
|
442
|
|
Purchase of property,
plant and equipment and other intangible assets
|
|
(207)
|
|
|
(218)
|
|
Proceeds from sale of
property, plant and equipment and other intangible
assets
|
|
3
|
|
|
4
|
|
Proceeds from
divestiture
|
|
397
|
|
|
138
|
|
Net debt (repayments)
proceeds
|
|
178
|
|
|
40
|
|
Dividends
paid
|
|
(391)
|
|
|
(374)
|
|
Share
buy-back
|
|
(223)
|
|
|
(75)
|
|
Other, including
effects of exchange rate on cash and cash equivalents
|
|
(27)
|
|
|
55
|
|
Net increase in cash
and cash equivalents
|
|
72
|
|
|
12
|
|
Cash and cash
equivalents at the beginning of the period
|
|
602
|
|
|
743
|
|
Cash and cash
equivalents at the end of the period
|
|
674
|
|
|
755
|
|
U.S. GAAP
Condensed Consolidated Balance Sheet (Unaudited)
|
|
($
million)
|
|
June 30,
2020
|
|
December 31,
2020
|
Cash and cash
equivalents
|
|
743
|
|
|
755
|
|
Trade receivables,
net
|
|
1,616
|
|
|
1,681
|
|
Inventories,
net
|
|
1,832
|
|
|
1,843
|
|
Property, plant and
equipment, net
|
|
3,615
|
|
|
3,767
|
|
Goodwill and other
intangible assets, net
|
|
7,333
|
|
|
7,357
|
|
Other
assets
|
|
1,303
|
|
|
1,315
|
|
Total
assets
|
|
16,442
|
|
|
16,718
|
|
Trade
payables
|
|
2,171
|
|
|
2,093
|
|
Short-term debt and
current portion of long-term debt
|
|
206
|
|
|
53
|
|
Long-term debt, less
current portion
|
|
6,028
|
|
|
6,432
|
|
Accruals and other
liabilities
|
|
3,350
|
|
|
3,292
|
|
Shareholders
equity
|
|
4,687
|
|
|
4,848
|
|
Total liabilities and
shareholders equity
|
|
16,442
|
|
|
16,718
|
|
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)
|
|
|
|
Half Year Ended
December 31, 2019
|
|
Half Year Ended
December 31, 2020
|
($
million)
|
|
EBITDA
|
|
EBIT
|
|
Net
Income
|
|
EPS
(Diluted
US
cents)
|
|
EBITDA
|
|
EBIT
|
|
Net
Income
|
|
EPS
(Diluted
US
cents)
|
Net income
attributable to Amcor
|
|
252
|
|
|
252
|
|
|
252
|
|
|
15.5
|
|
|
417
|
|
|
417
|
|
|
417
|
|
|
26.5
|
|
Net income
attributable to non-controlling interests
|
|
4
|
|
|
4
|
|
|
|
|
|
|
5
|
|
|
5
|
|
|
|
|
|
(Income) loss from
discontinued operations
|
|
8
|
|
|
8
|
|
|
8
|
|
|
0.5
|
|
|
—
|
|
|
—
|
|
|
|
|
|
Tax
expense
|
|
67
|
|
|
67
|
|
|
|
|
|
|
116
|
|
|
116
|
|
|
|
|
|
Interest expense,
net
|
|
99
|
|
|
99
|
|
|
|
|
|
|
70
|
|
|
70
|
|
|
|
|
|
Depreciation and
amortization
|
|
321
|
|
|
|
|
|
|
|
|
287
|
|
|
|
|
|
|
|
EBITDA, EBIT, Net
income and EPS
|
|
751
|
|
|
430
|
|
|
260
|
|
|
16.0
|
|
|
895
|
|
|
608
|
|
|
417
|
|
|
26.5
|
|
Material
restructuring and related costs
|
|
41
|
|
|
41
|
|
|
41
|
|
|
2.5
|
|
|
39
|
|
|
39
|
|
|
39
|
|
|
2.5
|
|
Net gain on
disposals(1)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(9)
|
|
|
(9)
|
|
|
(9)
|
|
|
(0.6)
|
|
Material transaction
and other costs(2)
|
|
101
|
|
|
101
|
|
|
101
|
|
|
6.3
|
|
|
13
|
|
|
13
|
|
|
13
|
|
|
0.8
|
|
Material impact of
hyperinflation
|
|
18
|
|
|
18
|
|
|
18
|
|
|
1.1
|
|
|
11
|
|
|
11
|
|
|
11
|
|
|
0.7
|
|
Amortization of
acquired intangibles(3)
|
|
|
|
109
|
|
|
109
|
|
|
6.8
|
|
|
|
|
82
|
|
|
82
|
|
|
5.2
|
|
Tax effect of above
items
|
|
|
|
|
|
(56)
|
|
|
(3.5)
|
|
|
|
|
|
|
(29)
|
|
|
(1.8)
|
|
Adjusted EBITDA,
EBIT, Net income and EPS
|
|
911
|
|
|
699
|
|
|
473
|
|
|
29.2
|
|
|
948
|
|
|
743
|
|
|
522
|
|
|
33.3
|
|
|
(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 half year ended December
31, 2019 includes $58 million of acquisition related inventory fair
value step-up costs.
|
(3) The half year
ended December 31, 2019 includes $26 million of sales backlog
amortization related to the Bemis acquisition.
|
Reconciliation of
adjusted EBIT by reporting segment
|
|
|
|
Half Year Ended
December 31, 2019
|
|
Half Year Ended
December 31, 2020
|
($
million)
|
|
Flexibles
|
|
Rigid
Packaging
|
|
Other(1)
|
|
Total
|
|
Flexibles
|
|
Rigid
Packaging
|
|
Other(1)
|
|
Total
|
Net income
attributable to Amcor
|
|
|
|
|
|
|
|
252
|
|
|
|
|
|
|
|
|
417
|
|
Net income
attributable to non-
controlling interests
|
|
|
|
|
|
|
|
4
|
|
|
|
|
|
|
|
|
5
|
|
(Income) loss from
discontinued
operations
|
|
|
|
|
|
|
|
8
|
|
|
|
|
|
|
|
|
—
|
|
Tax
expense
|
|
|
|
|
|
|
|
67
|
|
|
|
|
|
|
|
|
116
|
|
Interest expense,
net
|
|
|
|
|
|
|
|
99
|
|
|
|
|
|
|
|
|
70
|
|
EBIT
|
|
392
|
|
|
98
|
|
|
(60)
|
|
|
430
|
|
|
534
|
|
|
110
|
|
|
(36)
|
|
|
608
|
|
Material
restructuring and related
costs
|
|
32
|
|
|
6
|
|
|
3
|
|
|
41
|
|
|
27
|
|
|
10
|
|
|
2
|
|
|
39
|
|
Net gain on
disposals(2)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6
|
|
|
—
|
|
|
(15)
|
|
|
(9)
|
|
Material transaction
and other
costs(3)
|
|
72
|
|
|
2
|
|
|
27
|
|
|
101
|
|
|
7
|
|
|
1
|
|
|
5
|
|
|
13
|
|
Material impact of
hyperinflation
|
|
—
|
|
|
18
|
|
|
—
|
|
|
18
|
|
|
—
|
|
|
11
|
|
|
—
|
|
|
11
|
|
Amortization of
acquired
intangibles(4)
|
|
106
|
|
|
3
|
|
|
—
|
|
|
109
|
|
|
79
|
|
|
3
|
|
|
—
|
|
|
82
|
|
Adjusted
EBIT(5)
|
|
602
|
|
|
127
|
|
|
(30)
|
|
|
699
|
|
|
653
|
|
|
134
|
|
|
(45)
|
|
|
743
|
|
Adjusted EBIT /
sales %
|
|
12.4
|
%
|
|
9.5
|
%
|
|
|
|
11.3
|
%
|
|
13.5
|
%
|
|
9.9
|
%
|
|
|
|
12.0
|
%
|
|
(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 half year ended December
31, 2019 includes $58 million of acquisition related inventory fair
value step-up costs.
|
(4) The half year
ended December 31, 2019 includes $26 million of sales backlog
amortization related to the Bemis acquisition.
|
(5) During the first
quarter of fiscal 2021, the Company reported that it revised the
presentation of the reportable segments Adjusted EBIT to include an
allocation of certain research and development and selling, general
and administrative expenses that management previously reflected in
Other. Prior periods have been recast to conform to the new cost
allocation methodology.
|
Reconciliations of
adjusted free cash flow
|
|
|
|
Half Year Ended
December 31,
|
($
million)
|
|
2019
|
|
2020
|
Net cash provided
from operating activities
|
|
342
|
|
|
442
|
|
Purchase of property,
plant and equipment and other intangible assets
|
|
(207)
|
|
|
(218)
|
|
Proceeds from sale of
property, plant and equipment and other intangible
assets
|
|
3
|
|
|
4
|
|
Operating cash flow
related to divested operations
|
|
60
|
|
|
—
|
|
Material transaction
and integration related costs(1)
|
|
112
|
|
|
48
|
|
Adjusted free cash
flow(2)
|
|
310
|
|
|
276
|
|
|
(1) The half year
ended December 31, 2020 and 2019 includes cash restructuring and
integration costs of approximately $31 million and $45 million
respectively.
|
(2) Adjusted free
cash flow excludes material transaction related costs because these
cash flows are not considered to be directly related to the
underlying business.
|
|
|
Half Year Ended
December 31,
|
($
million)
|
|
2019
|
|
2020
|
Adjusted
EBITDA
|
|
911
|
|
|
948
|
|
Interest paid,
net
|
|
(92)
|
|
|
(65)
|
|
Income tax
paid(2)
|
|
(89)
|
|
|
(168)
|
|
Purchase of property,
plant and equipment and other intangible assets
|
|
(207)
|
|
|
(218)
|
|
Proceeds from sale of
property, plant and equipment and other intangible
assets
|
|
3
|
|
|
4
|
|
Movement in working
capital
|
|
(195)
|
|
|
(209)
|
|
Other
|
|
(21)
|
|
|
(16)
|
|
Adjusted free cash
flow(1)
|
|
310
|
|
|
276
|
|
|
(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.
|
(2) The half year
ended December 31, 2019 excludes tax cash paid of $95 million
related to disposal proceeds from divestments which were required
by the European Commission and the U.S. Department of Justice at
the time of approving Amcor's acquisition of Bemis.
|
Reconciliation of
net debt
|
|
($
million)
|
|
June 30,
2020
|
|
December 31,
2020
|
Cash and cash
equivalents
|
|
(743)
|
|
|
(755)
|
|
Short-term
debt
|
|
195
|
|
|
40
|
|
Current portion of
long-term debt
|
|
11
|
|
|
13
|
|
Long-term debt
excluding current portion of long-term debt
|
|
6,028
|
|
|
6,432
|
|
Net
debt
|
|
5,492
|
|
|
5,730
|
|
View original
content:http://www.prnewswire.com/news-releases/amcor-reports-first-half-results-and-raises-outlook-for-fiscal-2021-301219662.html
SOURCE Amcor