Amcor (ASX:AMC) Shares Climb on Earnings Report and Merger Progress

2 min read | February 05, 2025 12:16 PM AEDT | By Team Kalkine Media

Amcor (ASX:AMC) Shares Climb on Earnings Report and Merger Progress — Image source: shutterstock

Earnings Breakdown: Growth Despite Sales Decline

Despite a 1.5% decline in H1 net sales to AU$6.59 billion, Amcor’s strong cost performance and volume growth boosted profitability:

Volume Growth: 2% increase in H1 FY 2025 compared to H1 FY 2024.
Adjusted EBIT: AU$728 million, up 4% YoY on a constant currency basis.
Quarterly EBIT: AU$363 million, a 5% increase from the prior corresponding period.
Earnings Margins: EBIT margin improved 0.4% to 11.0%.
Adjusted EPS: 32.2 cents per share, a 5% increase.

Additionally, Amcor announced a quarterly dividend of 12.75 US cents per share, up 2% YoY. Australian investors will receive 20.40 Aussie cents per share, with the stock trading ex-dividend on 25 February.

CEO Confirms Strong Outlook and Merger Progress

Amcor CEO Peter Konieczny reaffirmed the company’s fiscal 2025 guidance, stating:

"Amcor delivered a solid second-quarter result aligned with the expectations we set out in October, giving us the confidence to again reaffirm our guidance for the fiscal year."

Looking ahead, Amcor expects:

Adjusted EPS of 72 to 76 cents per share for FY 2025.
Free cash flow between AU$900 million and AU$1.0 billion.

Berry Global Merger on Track for 2025 Completion

Amcor also provided an update on its AU$8.4 billion "transformational" merger with Berry Global, which remains on track for mid-2025 completion. Konieczny highlighted the benefits of the deal, stating:

"Bringing these two companies together will deliver on our strategy to become an even stronger company with accelerated volume-driven organic growth… With faster growth and AU$650 million of identified synergies, this combination will drive significant near and long-term value for all shareholders."

Disclaimer

The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media Pty Ltd (Kalkine Media, we or us), ACN 629 651 672 and is available for personal and non-commercial use only. The principal purpose of the Content is to educate and inform. The Content does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the Content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stocks of the company(s) or engage in any investment activity under discussion. Kalkine Media is neither licensed nor qualified to provide investment advice through this platform. Users should make their own enquiries about any investments and Kalkine Media strongly suggests the users to seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice), as necessary. Kalkine Media hereby disclaims any and all the liabilities to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music that may be used on this website are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures displayed/music used on this website unless stated otherwise. The images/music that may be used on this website are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source wherever it was indicated as or found to be necessary.