Amcor Reports 3Q 2020 Results

Amcor reported its financial results for the third quarter ending March 31, 2020.

The company had sales of $6.855 billion, GAAP net income of $433 million and earnings per share (EPS) of 26.9 cents per share during the quarter. Adjusted free cash flow was $367 million, up $217 million.
Adjusted EBIT of $1,059 million was up 6.9% in constant currency terms. The Bemis integration is progressing well with year to date pre-tax synergy benefits of $55 million.

“During this period of unprecedented challenge, the vital role that primary packaging plays in the supply of essential food, beverage and healthcare products has never been clearer,” Amcor CEO Ron Delia said.

“Right now, consumers are especially focused on product safety, hygiene, shelf life and convenience, and Amcor is helping meet those needs around the world with packaging for consumer staples. I am extremely proud of the commitment and dedication our 50,000 co-workers are demonstrating every day to continue supplying our customers during these difficult times and we cannot thank them enough.

“While we are not immune from the current challenges, Amcor remains relatively well positioned and defensive, given our sales are almost entirely weighted to essential consumer staples end markets and we have broad geographic diversification and global scale,” added Delia.

“For the second consecutive quarter we have increased guidance for the 2020 fiscal year. Earnings growth has remained strong due to momentum in the base business and faster than expected synergies from our acquisition of Bemis last year,” Delia observed. “Amcor continues to deliver consistent cash flow and the Board remains committed to a compelling dividend. Amcor has a strong balance sheet and we expect to generate over $1 billion of annual free cash flow, enabling continued investment in the business and cash returns to shareholders.”