Amcor’s fiscal 2024 results demonstrate resilience and strategic growth, setting the stage for an optimistic outlook in fiscal 2025. As a global leader in responsible packaging solutions, Amcor continues to navigate a challenging market landscape with strategic focus and operational efficiency. Amcor’s net sales for fiscal 2024 totaled $13.64 billion, reflecting a 7% decrease compared to the previous year, yet the company showed strong financial performance, particularly in the final quarter.
Strong Q4 Performance
In the June 2024 quarter, Amcor reported net sales of $3.535 billion, with volumes returning to growth, up by 1%. Adjusted EBIT reached $454 million, a 4% increase on a comparable constant currency basis. The company’s GAAP net income stood at $257 million, translating to a diluted EPS of 17.8 cents per share. Adjusted EPS increased by 9%, reaching 21.1 cents per share, reflecting the company’s effective cost management and strategic initiatives. Peter Konieczny, Interim CEO of Amcor, emphasized that “Amcor finished fiscal 2024 strongly,” attributing this to “sequential improvement in volume and earnings growth.”
Full-Year Financials and Shareholder Returns
For the Amcor’s entire fiscal year 2024, Amcor reported a GAAP net income of $730 million and an adjusted EBIT of $1.56 billion as results. The company’s free cash flow was robust at $952 million, marking a 12% increase compared to the previous year. This strong cash generation enabled Amcor to return approximately $750 million to shareholders through dividends and share repurchases. The annual dividend increased to 50 cents per share, reinforcing the company’s commitment to delivering value to its shareholders.
Outlook for Fiscal 2025
Looking ahead, Amcor projects adjusted EPS for fiscal 2025 to be between 72 and 76 cents per share, indicating growth of 3% to 8% on a comparable constant currency basis. The company’s adjusted free cash flow is expected to remain strong, ranging between $900 million and $1 billion. Amcor’s strategy for 2025 focuses on driving volume and earnings growth while maintaining a disciplined approach to capital allocation.
Segment Performance
Amcor’s Flexibles segment continues to lead, with net sales of $10.332 billion for fiscal 2024, despite a 7% decline compared to the previous year. The segment’s adjusted EBIT was slightly lower at $1.395 billion, yet the EBIT margin improved to 13.5%. In the Rigid Packaging segment, net sales reached $3.308 billion, a 7% decline from the previous year, with an adjusted EBIT of $259 million. Despite challenges, Amcor’s strategic initiatives and cost management have allowed the company to maintain strong margins in both segments.
Capital Allocation and Future Investments
Amcor remains committed to its capital allocation framework, focusing on organic growth, acquisitions, share repurchases, and returning cash to shareholders. The company’s strong balance sheet and consistent cash flow generation provide the flexibility to invest in future growth opportunities, including innovations in sustainable packaging solutions.
Conclusion
Amcor’s fiscal 2024 performance highlights its ability to adapt to changing market conditions while delivering strong financial results. With a clear strategy and a positive outlook for fiscal 2025, Amcor is well-positioned to continue its growth trajectory, benefiting its shareholders, customers, and the broader packaging industry.
