{"id":10171,"date":"2025-11-06T03:58:36","date_gmt":"2025-11-06T08:58:36","guid":{"rendered":"https:\/\/www.packagingindustrynews.com\/?p=10171"},"modified":"2025-11-06T03:58:36","modified_gmt":"2025-11-06T08:58:36","slug":"amcor-reports-profit-growth-in-q1-and-maintains-fiscal-2026-guidance","status":"publish","type":"post","link":"https:\/\/www.packagingindustrynews.com\/?p=10171","title":{"rendered":"Amcor reports profit growth in Q1 and maintains fiscal 2026 guidance\u00a0"},"content":{"rendered":"


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The Global Rigid Packaging Solutions division saw a 205% increase in net sales. Credit: T. Schneider \/ Shutterstock.com <\/figcaption><\/figure>\n<\/p><\/div>\n

Packaging solutions company\u202fAmcor has registered a growth in its first-quarter (Q1) profit and reaffirmed its earnings guidance for fiscal 2026.\u00a0<\/p>\n

The company\u2019s net income reached $262m in Q1 (ended 30 September 2025). This included costs related to its acquisition<\/a> of Berry Global, which was finalised in April.\u00a0\u00a0<\/p>\n

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In the same quarter of the previous year, Amcor reported a net income of $191m.\u00a0<\/p>\n

It\u00a0posted net sales of $5.74bn for the period \u2013 a 68% year-on-year surge on a constant currency basis.\u00a0\u00a0<\/p>\n

The Global Flexible Packaging Solutions division reported net sales of $3.26bn, an increase of 25% at constant currency, alongside a 28% rise in adjusted earnings before interest and taxation (EBIT) to $426m.\u00a0\u00a0<\/p>\n

The Global Rigid Packaging Solutions division saw net sales soar 205% to $2.49bn and 365% growth in adjusted EBIT to $295m.\u00a0<\/p>\n

Amcor\u2019s\u00a0adjusted EBIT rose 85% to $687m in the quarter at constant currency, while adjusted earnings before interest, taxes, depreciation and amortisation EBITDA) jumped 92% to $909m.\u00a0\u00a0<\/p>\n

Adjusted EBIT margins improved by 110 basis points to 12%.\u00a0<\/p>\n

Adjusted earnings increased to $448m from $234m, while adjusted earnings per share (EPS) climbed 18% to 19.3 cents \u2013 above the mid-point of the company\u2019s projected range.\u00a0<\/p>\n

Amcor recorded synergy benefits of $38m during the quarter, with $33m contributing to adjusted EBIT and $5m favourably affecting interest expense.\u00a0\u00a0<\/p>\n

Integration of the Berry business was progressing as expected, with at least $260m in pre-tax synergy benefits anticipated for fiscal 2026, equivalent to approximately 12% EPS accretion.\u00a0\u00a0<\/p>\n

Total synergy benefits before tax are projected to reach $650m by the end of fiscal 2028.\u00a0<\/p>\n

Free cash outflow for the quarter stood at $343m, which according to the company was \u201cin-line with expectations\u201d, following approximately $115m in acquisition-related cash costs.\u00a0\u00a0<\/p>\n

Net debt was reported at $13.99bn as of 30 September 2025.\u00a0<\/p>\n

Reflecting its cash flow outlook, the board declared a quarterly dividend of 13.0 cents per share, compared with 12.75 cents in the same period a year ago.\u00a0\u00a0<\/p>\n

The dividend is scheduled for payment on 17 December 2025 to shareholders on record as of 28 November.\u00a0<\/p>\n

The company also reaffirmed its fiscal 2026 guidance, projecting adjusted EPS in the range of 80 to 83 cents, representing 12\u201317% constant currency growth.\u00a0\u00a0<\/p>\n

Expected free cash flow is projected to remain between $1.8bn and $1.9bn.\u00a0<\/p>\n

For fiscal 2026, Amcor anticipates capital expenditure between $850m and $900m, net interest expense of $570m to $600m, and an effective tax rate ranging from 19% to 21%.\u00a0<\/p>\n

Amcor CEO Peter Konieczny said: \u201cWe have clear line of sight to delivering at least $260m of synergy benefits in fiscal 26, and we have confidence in our ability to deliver a year of strong earnings and free cash flow growth.\u00a0\u00a0<\/p>\n

\u201cAs we look ahead, we are confident in delivering $650m of identified synergies, and over the three year period ending fiscal 28 we expect synergies alone to drive more than 30% EPS growth.\u00a0\u00a0<\/p>\n

\u201cAt the same time, we are focused on capturing organic growth opportunities to create an even stronger business that delivers significant long term value for shareholders and is the global packaging partner of choice for customers.\u201d\u00a0<\/p>\n

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