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By the numbers: Q2 FY2025
Net sales: $3.24B
Down 0.3% year over year
Flexibles net sales: $2.51B
Up 1.2% year over year
Rigid Packaging net sales: $730M
Down 5.2% year over year
Net income: $163M
Up 21.6% year over year
- Results: Amcor’s volumes were up 0.7% over the previous quarter and up 2.3% year over year. Flexibles volumes were up 3% year over year during the quarter. Rigids volumes were up about 1%. In North America, beverage volumes were down slightly, which Amcor said reflected “expected soft consumer and customer demand.” Amcor operates on its own fiscal calendar, so the past quarter which ended Dec. 31 was its second of fiscal year 2025.
- Acquisition of Berry Global: Amcor announced its planned acquisition of competitor Berry Global during the quarter, a deal worth an estimated $8.4 billion. Both Amcor and Berry’s shareholders are expected to meet on Feb. 25 regarding the combination.
- Berry’s results: Berry released its own quarterly results on Tuesday. Berry’s net sales grew 2% to approximately $2.39 billion in its most recent quarter. Net sales in consumer packaging were up 10% in its North America business, with strength in food, beverage and food service markets, but down 3% in its international segment. Net sales were up 2% in its flexibles business. Berry also disclosed that the sale of its tape business was finalized in February.
- Healthcare business: Following the integration of Berry, Amcor expects to have a $3 billion healthcare business. Although destocking wrapped up in other categories, healthcare is one area still dogged by this issue. Amcor CFO Michael Casamento said in prepared remarks that the destocking trend in North American and European pharmaceuticals negatively impacted overall segment volumes by 1% during the quarter. But there are signs the situation is improving. “Compared to the fiscal first quarter, destocking abated and the related price/mix headwind improved. Exiting the second quarter, we believe healthcare destocking is now largely behind us,” Casamento said.
- Tariffs commentary: Executives responded to questions about potential business impacts from tariffs. They don’t expect to feel significant pains, given the regional nature of Amcor’s business and the fact that costs would likely be passed through. CEO Peter Konieczny said that Amcor has learned from past experiences and tried to shorten supply chains to decrease risks. Additionally, “in some cases, we even have agreements with customers that would be based on indices that would allow us to to pass on these additional costs,” he said. As a result, “we feel we're not immune, but somewhat robust against the tariffs,” he said.
- Outlook: Amcor reaffirmed its financial guidance for fiscal 2025, which ends June 30, for adjusted free cash flow between $900 million and $1 billion, exiting the year with leverage at or below 3x, and adjusted EPS of 72 to 76 cents per share. Amcor still projects the Berry deal will close in the middle of this calendar year.
