Amcor plc

Results of Operations - Three Months Ended March 31, 2025

Consolidated Results of Operations

Net sales decreased by $78 million, or 2%, for the three months ended March 31, 2025, compared to the three months ended March 31, 2024. Excluding negative currency impacts of $78 million, the negative impacts from disposed operations of $58 million, and the positive impacts from the pass-through of higher raw material costs of approximately $45 million, the remaining variation in net sales for the three months ended March 31, 2025 was an increase of approximately $13 million, reflecting flat sales volumes and favorable price/mix impacts.

Net income attributable to Amcor plc increased by $9 million, or 5%, for the three months ended March 31, 2025, compared to the three months ended March 31, 2024, mainly due to lower selling, general, and administrative expenses of $27 million and higher other income, net, of $21 million, partially offset by a decrease in gross profit of $38 million.

Diluted earnings per share ("Diluted EPS") increased by $0.007, or 5%, for the three months ended March 31, 2025, compared to the three months ended March 31, 2024, with the net income available to ordinary shareholders of Amcor plc also increasing by 5% due to the above items and the diluted weighted average number of shares remaining in line with the prior year.

Segment Results of Operations

Flexibles Segment

Net sales increased by $7 million for the three months ended March 31, 2025, compared to the three months ended March 31, 2024. Excluding negative currency impacts of $59 million, the positive impacts from pass-through of higher raw material costs of approximately $40 million, and the negative impacts from disposed operations of $11 million, the remaining variation in net sales for the three months ended March 31, 2025 was an increase of approximately $37 million, or 1%, reflecting higher sales volumes and favorable price/mix impacts, both with less than a 1% favorable impact.

Adjusted earnings before interest and tax ("Adjusted EBIT") decreased by $1 million for the three months ended March 31, 2025, compared to the three months ended March 31, 2024. Excluding negative currency impacts of $7 million, the remaining variation in Adjusted EBIT for the three months ended March 31, 2025, was an increase of $6 million, or 2%, driven by favorable volumes flow through of approximately 3% and favorable operating costs performance of approximately 9%, partially offset by unfavorable price/mix impacts of approximately 10%.

Rigid Packaging Segment

Net sales decreased by $85 million, or 10%, for the three months ended March 31, 2025, compared to the three months ended March 31, 2024. Excluding the negative impacts from disposed operations of approximately $45 million, the negative currency impacts of $19 million, and the positive impacts from the pass-through of higher raw material costs of approximately $5 million, the remaining variation in net sales for the three months ended March 31, 2025 was a decrease of approximately $26 million, or 3%, reflecting unfavorable sales volumes of approximately 2% and unfavorable price/mix impacts of approximately 1%.

Adjusted EBIT decreased by $16 million, or 22%, for the three months ended March 31, 2025, compared to the three months ended March 31, 2024. Excluding the negative impacts from disposed operations of approximately $5 million and the negative currency impacts of $2 million the remaining variation in Adjusted EBIT for the three months ended March 31, 2025 was a decrease of approximately $9 million, or 12%, driven by unfavorable volumes of 8% and unfavorable price/mix impacts of approximately 11%, partially offset by a lower operating costs impact of 7%.

Consolidated Gross Profit

Gross profit decreased by $38 million, or 5%, for the three months ended March 31, 2025, compared to the three months ended March 31, 2024. The decrease was primarily driven by negative currency impacts of 2%, disposals in the current fiscal year, and lower sales, partially offset by improved operating cost performance, which also drove a decrease in gross profit as a percentage of sales to 19.6% for the three months ended March 31, 2025.

Consolidated Selling, General, and Administrative Expenses

Selling, general, and administrative expenses decreased by $27 million for the three months ended March 31, 2025, compared to the three months ended March 31, 2024. The change was primarily a result of SG&A cost reduction initiatives and restructuring benefits and the non-reoccurrence of CEO transition costs in the current year.

Consolidated Restructuring, Transaction and Integration Expenses

Restructuring, transaction and integration expenses increased by $2 million for the three months ended March 31, 2025, compared to the three months ended March 31, 2024. The change was a result of transaction and integration costs of $26 million, incurred in connection with the Merger with Berry during the current period, partially offset by a decrease in restructuring and related expenses, net, of $24 million.

Consolidated Other Income, Net

Other income, net changed by $21 million for the three months ended March 31, 2025, compared to the three months ended March 31, 2024. The change was primarily driven by the year on year change in indirect tax benefits and the change in the fair value of the swap hedging a portion of U.S. commercial paper.

Consolidated Income Tax Expense

The effective tax rate for the three months ended March 31, 2025 decreased by 0.5 percentage points compared to the three months ended March 31, 2024, primarily due to the differences in the magnitude of non-deductible expenses and discrete events between the periods.

Results of Operations - Nine Months Ended March 31, 2025

Consolidated Results of Operations

Net sales decreased by $178 million, or 2%, for the nine months ended March 31, 2025, compared to the nine months ended March 31, 2024. Excluding the negative currency impacts of $133 million, the negative impacts from disposed operations of $60 million, and the positive impacts from the pass-through of higher raw material costs of approximately $45 million, the remaining decrease in net sales for the nine months ended March 31, 2025 was approximately $30 million, reflecting higher sales volumes of 1%, partially offset by unfavorable price/mix impacts of approximately 1% .

Net income attributable to Amcor plc increased by $77 million, or 16%, for the nine months ended March 31, 2025, compared to the nine months ended March 31, 2024, mainly due to lower selling, general, and administrative expenses of $18 million, lower restructuring, transaction and integration expenses of $11 million, higher other income, net, of $95 million, and lower interest expense, net of $10 million, partially offset by a decrease in gross profit of $19 million, higher income tax expense of $34 million, and unfavorable change in other non-operating income/(expenses) of $5 million.

Diluted earnings per share increased by $0.053, or 16%, for the nine months ended March 31, 2025, compared to the nine months ended March 31, 2024, with the net income available to ordinary shareholders of Amcor plc also increasing by 17% due to the above items and the diluted weighted average number of shares remaining in line with the prior year.

Segment Results of Operations

Flexibles Segment

Net sales increased by $21 million for the nine months ended March 31, 2025, compared to the nine months ended March 31, 2024. Excluding the negative currency impacts of $87 million, the positive impacts from the pass-through of higher raw material costs of approximately $80 million, and the negative impacts from disposed operations of $13 million, the remaining variation in net sales for the nine months ended March 31, 2025 was an increase of approximately $41 million, or 1%, mainly reflecting favorable sales volumes of approximately 2%, partially offset by unfavorable price/mix impacts of less than 2%.

Adjusted EBIT increased by $16 million, or 2%, for the nine months ended March 31, 2025, compared to the nine months ended March 31, 2024. Excluding negative currency impacts of $13 million, the remaining increase in Adjusted EBIT for the nine months ended March 31, 2025 was $29 million, or 3%, reflecting the positive effects from favorable volumes of approximately 8% and favorable operating cost performance of approximately 15%, partially offset by negative price/mix impacts of approximately 20%.

Rigid Packaging Segment

Net sales decreased by $199 million, or 8%, for the nine months ended March 31, 2025, compared to the nine months ended March 31, 2024. Excluding the negative impacts from disposed operations of approximately $45 million, the negative currency impacts of $46 million, and the negative impacts from the pass-through of lower raw material costs of approximately $35 million, the remaining variation in net sales for the nine months ended March 31, 2025 was a decrease of approximately $73 million, or 3%. This reflects unfavorable sales volumes of approximately 2% and unfavorable price/mix impacts of approximately 1%.

Adjusted EBIT decreased by $13 million, or 7%, for the nine months ended March 31, 2025, compared to the nine months ended March 31, 2024. Excluding the negative currency impacts of $7 million and the negative impacts from disposed operations of approximately $5 million, the remaining variation in Adjusted EBIT for the nine months ended March 31, 2025, was a decrease of approximately $1 million, or 1%, reflecting negative effects from unfavorable volumes of approximately 7% and unfavorable price/mix impacts of approximately 9%, partially offset by favorable operating cost performance of approximately 15%.

Consolidated Gross Profit

Gross profit decreased by $19 million, or 1%, for the nine months ended March 31, 2025, compared to the nine months ended March 31, 2024. The decrease was primarily driven by negative currency impacts of 1%, lower sales, and impact of disposals in the current fiscal year, partially offset by improved operating cost performance, which also drove an increase in gross profit as a percentage of sales increased to 19.5% for the nine months ended March 31, 2025.

Consolidated Selling, General, and Administrative Expenses

Selling, general, and administrative expenses decreased by $18 million for the nine months ended March 31, 2025, compared to the nine months ended March 31, 2024. The change was primarily a result of SG&A cost reduction initiatives, restructuring benefits, and the non-reoccurrence of CEO transition costs in the current year.

Consolidated Restructuring, Transaction and Integration Expenses

Restructuring, transaction and integration expenses decreased by $11 million for the nine months ended March 31, 2025, compared to the nine months ended March 31, 2024. The change was a result of a decrease in restructuring and related expenses, net, of $47 million, partially offset by transaction and integration costs of $36 million, incurred in connection with the merger with Berry during the current year.

Consolidated Other Income/(Expenses), Net

Other income/(expenses), net changed by $95 million for the nine months ended March 31, 2025, compared to the nine months ended March 31, 2024, primarily driven by the current year lower negative impacts of highly inflationary accounting for subsidiaries in Argentina and the gain on the divestiture of Bericap.

Consolidated Income Tax Expense

The effective tax rate for the nine months ended March 31, 2025 increased by 2.0 percentage points compared to the nine months ended March 31, 2024, primarily due to the tax impact of the divestiture of Bericap, and differences in the magnitude of non-deductible expenses and discrete events between the periods.