First-quarter profits rise as Amcor focuses its strategy on controlling costs

First-quarter profits rise as Amcor focuses its strategy on controlling costs

Amcor (ASX:AMC, NYSE:AMCR), a global leader in packaging solutions, reported first quarter results for fiscal 2025, showing sequential growth led by the Flexible and Rigid Packaging segments. The company achieved net sales of $3.35 billion for the quarter ended September 30, 2024, slightly lower than last year’s $3.44 billion due to lower raw material costs and foreign exchange impacts . Despite a 3% year-over-year decline in reported net sales, adjusted earnings before interest and taxes (EBIT) increased 3% to $365 million on a constant currency basis, reflecting the focus on volume growth and cost efficiency.

In the Flexible segment, net sales remained stable at $2.55 billion, and adjusted EBIT increased 3% to $329 million. Volume growth in most regions contributed to this improvement, although healthcare demand remained weak, impacting high-value categories.

In North America, there has been notable growth in meat and liquid food packaging, offset by some declines in healthcare and home care products. The rigid packaging segment saw an 8% decline in reported net sales to $801 million, with beverage volumes in North America particularly affected by weak demand. However, adjusted EBIT in this segment increased 2% on a comparable constant currency basis, supported by strategic pricing adjustments and cost efficiencies.

Amcor’s first-quarter net income increased to $191 million from $152 million in the same period last year, with diluted earnings per share up to 13.2 cents. CEO Peter Konieczny commented: “Amcor’s results reflect our disciplined cost management and volume growth, especially in areas such as flexible packaging. We remain focused on innovation and margin quality, positioning ourselves well for the next fiscal year.”

The company reaffirmed its full-year guidance, forecasting adjusted EPS of 72 to 76 cents and free cash flow of between $900 million and $1 billion. Amcor also announced an increased quarterly dividend of 12.75 cents per share, paid in US dollars to NYSE shareholders and converted into Australian currency for ASX shareholders, with an ex-dividend date of 20 November.

Amcor shares are currently trading 4.15% lower at $16.04.

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