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March 2023 quarter:Net sales of $3,667 million were 1% lower than last year on a reported basis, which includes an unfavorable impact of2% related to movements in foreign currency exchange rates, an unfavorable impact of 2% related to items affectingcomparability and price increases of approximately $80 million (representing 2% growth) related to the pass through ofhigher raw material costs.Net sales on a comparable constant currency basis were 1% higher than the same quarter last year reflecting price/mix benefits of approximately 4%. Volumes were approximately 3% lower than in the third quarter last year.GAAP Net Income was $177 million. Adjusted EBIT of $382 million was 2.5% lower than the same quarter last year ona comparable constant currency basis.Flexibles segment result Nine Months Ended March 31, Reported∆%Comparableconstantcurrency ∆%2022 $ million 2023 $ millionNet sales 8,184 8,378 2 3Adjusted EBIT 1,069 1,043 (2) 5Adjusted EBIT / Sales % 13.1 12.4Nine months ended March 31, 2023:On a reported basis, net sales of $8,378 million were 2% higher than the same period last year, and includes anunfavorable impact of 5% related to movements in foreign exchange rates, an unfavorable impact of approximately 1%related to items affecting comparability and price increases of approximately $490 million (representing 6% growth)related to the pass through of higher raw material costs. Net sales on a comparable constant currency basis were 3%higher than the same period last year reflecting price/mix benefits of approximately 5%, partly offset by approximately2% lower volumes.In North America, net sales grew in the low single digit range driven by price/mix benefits, partly offset by lowervolumes. Volumes were higher in the healthcare, pet care and home and personal care categories, and this was morethan offset by lower volumes in categories including condiments, meat and ready meals.In Europe, net sales grew in the mid single digit range driven by price/mix benefits, partly offset by lower volumes.Volumes were lower in coffee, home and personal care, yogurt, confectionary and medical. This was partly offset byhigher volumes in pet care and pharmaceuticals.Net sales were broadly in line with the prior year across the Asia Pacific region with price/mix benefits offset by lowervolumes. Volumes were lower in China where demand was unfavorably impacted by COVID related lockdowns. Salesgrowth has remained strong in India, Australia and in the pan Asian healthcare and meat end markets. In LatinAmerica, net sales grew at low single digit rates driven by favorable price/mix benefits, partly offset by lower volumes.Adjusted EBIT of $1,043 million was 5% higher than the same period last year on a comparable constant currencybasis, reflecting favorable operating cost performance partly offset by the impact of lower volumes and unfavorable mixtrends.Adjusted EBIT margin of 12.4% includes an adverse impact of approximately 80 basis points related to the increasedsales dollars associated with passing through higher raw material costs.March 2023 quarter:On a reported basis, net sales of $2,787 million were 2% lower than the same quarter last year, and includes anunfavorable impact of 2% related to movements in foreign exchange rates, an unfavorable impact of 3% related toitems affecting comparability and price increases of approximately $35 million (representing 1% growth) related to thepass through of higher raw material costs. Net sales on a comparable constant currency basis were 2% higher thanthe same quarter last year reflecting price/mix benefits of approximately 5%, partly offset by approximately 3% lowervolumes.In Europe, volumes declined in the mid single digit range and in North America, volumes declined in the low single digitrange. In both businesses this reflects sequentially softer consumer demand along with customer destocking.Adjusted EBIT of $337 million was 1% lower than the same quarter last year on a comparable constant currency basis,reflecting lower volumes and increased volatility, unfavorable mix trends and ongoing cost inflation. These unfavorableimpacts were offset by benefits from cost reduction initiatives.3
Rigid Packaging segment result Nine Months Ended March 31, Reported∆%Comparableconstantcurrency ∆%2022 $ million 2023 $ millionNet sales 2,451 2,643 8 (2)Adjusted EBIT 194 192 (1) -Adjusted EBIT / Sales % 7.9 7.3Nine months ended March 31, 2023:On a reported basis, net sales of $2,643 million were 8% higher than the same period last year, which includes anunfavorable impact of 1% related to movements in foreign exchange rates and price increases of approximately $260million (representing 11% growth) related to the pass through of higher raw material costs. Net sales on a comparableconstant currency basis were 2% lower than the same period last year reflecting approximately 3% lower volumes,partly offset by price/mix benefits of approximately 1%.In North America, overall beverage volumes were 5% lower than the same period last year. Hot fill beverage containervolumes were up 2% as a result of continued growth in key categories, offset by lower combined preform and cold fillcontainer volumes compared to the prior period. The specialty container business delivered volume growth in thehealthcare, dairy and nutrition categories. Overall specialty container volumes were in line with last year.In Latin America, volumes were 2% lower than last year with volume growth in Argentina and Mexico offset by lowervolumes primarily in Colombia.Adjusted EBIT of $192 million was in line with the same period last year on a comparable constant currency basis,reflecting lower volumes and unfavorable mix trends offset by favorable operating cost performance.Adjusted EBIT margin of 7.3% includes an adverse impact of approximately 80 basis points related to the increasedsales dollars associated with passing through higher raw material costs.March 2023 quarter:On a reported basis, net sales of $880 million were 1% higher than the same quarter last year, which includes anunfavorable impact of 1% related to movements in foreign exchange rates and price increases of approximately $50million (representing 5% growth) related to the pass through of higher raw material costs. Net sales on a comparableconstant currency basis were 4% lower than the same quarter last year reflecting lower volumes.In North America, overall beverage volumes in the March 2023 quarter were 6% lower than the same quarter last yearas a result of lower consumer demand and customer destocking more than offsetting new business wins. March 2023quarter hot fill beverage container volumes were 1% higher than last year and outperformed the market. In LatinAmerica, the business continued to be unfavorably impacted by soft demand across the region and volumes declinedat mid single digit rates.Adjusted EBIT of $69 million was 9% lower than the same quarter last year on a comparable constant currency basisreflecting lower volumes and increased volatility, unfavorable mix trends and ongoing cost inflation. These unfavorableimpacts were partly offset by benefits from cost reduction initiatives.Net interest and income tax expenseFor the nine months ended March 31, 2023, net interest expense of $189 million was $89 million higher than the sameperiod last year reflecting higher interest rates. GAAP income tax expense was $125 million compared with $196million in the same period last year. Excluding amounts related to non-GAAP adjustments, adjusted tax expense forthe nine months ended March 31, 2023 was $170 million compared with $232 million in the same period last year.Adjusted tax expense represents an effective tax rate of 17.2% which is lower than 21.2% in the same period last year,primarily due to differences in the mix of taxable income and discrete items in both periods.Adjusted Free Cash FlowFor the nine months ended March 31, 2023, adjusted Free cash flow was $14 million compared with $263 million in thesame period last year. Compared with last year, the variance reflects lower accounts payable balances resulting frommoderated purchasing activities due to inventory reduction initiatives and lower sales volumes in fiscal 2023. March2023 quarter adjusted Free cash flow of $76 million compares with $158 million in the same quarter last year.Net debt was $6,449 million at March 31, 2023. Leverage, measured as net debt divided by adjusted trailing twelvemonth EBITDA, was 3.1 times.4
Contact InformationDamien Bird Damon WrightVice President Investor Relations Asia Pacific Vice President Investor Relations North AmericaAmcor Amcor+61 3 9226 9070 +1 224 313 7141InvestorsTracey WhiteheadGlobal Head of Investor RelationsAmcor+61 3 9226 9028[email protected] [email protected] [email protected]Media – Australia Media – Europe & North AmericaJames Strong Ernesto DuranPartner Head of Global CommunicationsCitadel-MAGNUS Amcor+61 448 881 174 +41 78 698 69 40[email protected] [email protected]Amcor plc UK Establishment Address: 83 Tower Road North, Warmley, Bristol, England, BS30 8XP, United KingdomUK Overseas Company Number: BR020803Registered Office: 3rd Floor, 44 Esplanade, St Helier, JE4 9WG, JerseyJersey Registered Company Number: 126984, Australian Registered Body Number (ARBN): 630 385 2786
Cautionary Statement Regarding Forward-Looking StatementsThis document contains certain statements that are “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. PrivateSecurities 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,” “intend,” “plan,” “anticipate,” “commit,” “estimate,” “potential,” “ambitions,””outlook,” or “continue,” the negative of these words, other terms of similar meaning, or the use of future dates. Such statements are based on thecurrent 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 itsrespective directors, executive officers, or advisors provide any representation, assurance or guarantee that the occurrence of the events expressedor implied in any forward-looking statements will actually occur. Risks and uncertainties that could cause actual results to differ from expectationsinclude, but are not limited to: changes in consumer demand patterns and customer requirements; the loss of key customers, a reduction inproduction requirements of key customers; significant competition in the industries and regions in which Amcor operates; failure by Amcor to expandits business; challenging current and future global economic conditions, including inflation and supply chain disruptions; impact of operatinginternationally, including negative impacts from the Russia-Ukraine conflict; price fluctuations or shortages in the availability of raw materials, energy,and other inputs; disruptions to production, supply, and commercial risks, which may be exacerbated in times of economic volatility; global healthoutbreaks, including COVID-19; an inability to attract and retain key personnel; costs and liabilities related to current and future environment, health,and safety laws and regulations; labor disputes; risks related to climate change; failures or disruptions in information technology systems;cybersecurity risks; a significant increase in indebtedness or a downgrade in the credit rating; foreign exchange rate risk; rising interest rates; asignificant write-down of goodwill and/or other intangible assets; failure to maintain an effective system of internal control over financial reporting;inability of the Company’s insurance policies to provide adequate protections; challenges to or the loss of intellectual property rights; litigation,including product liability claims; increasing scrutiny and changing expectations with respect to Amcor Environmental, Social and Governancepolicies resulting in increased costs; changing government regulations in environmental, health, and safety matters; changes in tax laws or changesin our geographic mix of earnings; and other risks and uncertainties identified from time to time in Amcor’s filings with the U.S. Securities andExchange 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, 2022 and any subsequent quarterly reports on Form 10-Q. You can obtain copies of Amcor’s filings with the SECfor 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 notundertake 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 informationIncluded in this release are measures of financial performance that are not calculated in accordance with U.S. GAAP. These measures includeadjusted EBITDA and EBITDA (calculated as earnings before interest and tax and depreciation and amortization), adjusted EBIT and EBIT(calculated as earnings before interest and tax), adjusted net income, adjusted earnings per share, adjusted free cash flow and net debt. In arrivingat these non-GAAP measures, we exclude items that either have a non-recurring impact on the income statement or which, in the judgment of ourmanagement, are items that, either as a result of their nature or size, could, were they not singled out, potentially cause investors to extrapolatefuture performance from an improper base. Note although amortization of acquired intangible assets is excluded from non-GAAP adjusted financialmeasures, the revenue of the acquired entities and all other expenses unless otherwise stated, are reflected in our non-GAAP financial performanceearnings measures. While not all inclusive, examples of these items include:• material restructuring programs, including associated costs such as employee severance, pension and related benefits, impairment ofproperty and equipment and other assets, accelerated depreciation, termination payments for contracts and leases, contractual obligations, andany other qualifying costs related to the restructuring plan;• material sales and earnings from disposed or ceased operations and any associated profit or loss on sale of businesses or subsidiaries;• impairments in goodwill and equity method investments;• material acquisition compensation and transaction costs such as due diligence expenses, professional and legal fees, and integrationcosts;• material purchase accounting adjustments for inventory;• amortization of acquired intangible assets from business combination;• significant property impairments, net of insurance recovery;• payments or settlements related to legal claims;• impacts from hyperinflation accounting; and• impacts related to the Russia-Ukraine conflict.Amcor also evaluates performance on a comparable constant currency basis, which measures financial results assuming constant foreign currencyexchange rates used for translation based on the average rates in effect for the comparable prior year period. In order to compute comparableconstant currency results, we multiply or divide, as appropriate, current-year U.S. dollar results by the current year average foreign exchange ratesand then multiply or divide, as appropriate, those amounts by the prior-year average foreign exchange rates. We then adjust for other items affectingcomparability. While not all inclusive, examples of items affecting comparability include the difference between sales or earnings in the current periodand the prior period related to acquired, disposed, or ceased operations. Comparable constant currency net sales performance also excludes theimpact from passing through movements in raw material costs.Management has used and uses these measures internally for planning, forecasting and evaluating the performance of the Company’s reportingsegments and certain of the measures are used as a component of Amcor’s Board of Directors’ measurement of Amcor’s performance for incentivecompensation purposes. Amcor believes that these non-GAAP measures are useful to enable investors to perform comparisons of current andhistorical performance of the Company. For each of these non-GAAP financial measures, a reconciliation to the most directly comparable U.S. GAAPfinancial measure has been provided herein. These non-GAAP financial measures should not be construed as an alternative to results determined inaccordance with U.S. GAAP. The Company provides guidance on a non-GAAP basis as we are unable to predict with reasonable certainty theultimate outcome and timing of certain significant forward-looking items without unreasonable effort. These items include but are not limited to theimpact of foreign exchange translation, restructuring program costs, asset impairments, possible gains and losses on the sale of assets, and certaintax related events. These items are uncertain, depend on various factors, and could have a material impact on U.S. GAAP earnings and cash flowmeasures for the guidance period.DividendsAmcor has received a waiver from the ASX’s settlement operating rules, which will allow the Company to defer processing conversions between itsordinary share and CDI registers from May 23, 2023 to May 24, 2023, inclusive.7
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