Amcor (ASX:AMC, NYSE:AMCR), a global leader in packaging solutions, reported first-quarter results for the 2025 fiscal year, showing sequential growth driven by its Flexibles and Rigid Packaging segments. The company achieved net sales of $3.35bn for the quarter ending 30 September 2024, slightly below last year’s $3.44bn due to lower raw material costs and foreign exchange impacts. Despite a 3% year-on-year drop in reported net sales, adjusted earnings before interest and tax (EBIT) rose 3% to $365m on a constant currency basis, reflecting a focus on volume growth and cost efficiencies.
In the Flexibles segment, net sales held steady at $2.55bn, and adjusted EBIT increased by 3%, reaching $329m. Volume growth across most regions contributed to this improvement, though healthcare sector demand remained weak, impacting high-value categories.
In North America, there was 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 $801m, with North American beverage volumes particularly affected by soft demand. However, adjusted EBIT in this segment rose 2% on a comparable constant currency basis, supported by strategic pricing adjustments and cost efficiencies.
Amcor’s first-quarter net income increased to $191m from $152m 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 like flexible packaging. We remain focused on innovation and margin quality, positioning us well for the fiscal year ahead.”
The company reaffirmed its full-year guidance, projecting adjusted EPS of 72-76 cents and free cash flow between $900m and $1bn. Amcor also announced an increased quarterly dividend of 12.75 cents per share, paid in US dollars to NYSE shareholders and converted to Australian currency for ASX shareholders, with an ex-dividend date of 20 November.
Shares in Amcor are currently trading 4.15% lower at $16.04.
