In Q4 2024, Amcor plc reported notable financial results, showcasing a revenue of $3.54 billion, a 3.67% increase from the previous quarter. Despite ongoing supply pressures, Amcor demonstrated strong operational discipline, achieving a net income of $257 million, equating to an EPS of $0.180, representing a robust year-over-year growth of 42.78%. Management attributed these results to effective cost management and a return to volume growth, with total volumes rising by 1% compared to the previous quarter. The company expects to leverage its strong market positioning to continue this momentum into fiscal year 2025.
Key Performance Indicators
Revenue
3.54B
QoQ: 3.67% | YoY:-3.76%
Gross Profit
754.00M
21.33% margin
QoQ: 9.12% | YoY:4.43%
Operating Income
399.00M
QoQ: 29.97% | YoY:22.77%
Net Income
257.00M
QoQ: 37.43% | YoY:42.78%
EPS
0.18
QoQ: 38.46% | YoY:50.00%
Revenue Trend
Margin Analysis
Key Insights
**Revenue**: $3.54 billion, up 3.67% QoQ.
**Gross Profit**: $754 million with a margin of 21.3%.
**Net Income**: $257 million, representing a net margin of 7.27%.
**EBITDA**: $544 million (EBITDA margin: 15.39%).
**EPS**: $0.180 (up 50% YoY, up 38.46% QoQ).
Financial Highlights
- Revenue: $3.54 billion, up 3.67% QoQ.
- Gross Profit: $754 million with a margin of 21.3%.
- Net Income: $257 million, representing a net margin of 7.27%.
- EBITDA: $544 million (EBITDA margin: 15.39%).
- EPS: $0.180 (up 50% YoY, up 38.46% QoQ).
- Free Cash Flow: $952 million, exceeding prior guidance.
- Adjustable EBIT Growth: 4% YoY on a comparable basis.
- Return on Capital Employed: 3.25%.
Management indicated strong performance across segments with flexible packaging returning to growth, while rigid packaging faced challenges in North America due to weak consumer demand in beverages, a critical segment that fell by 8%.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
3.54B
-3.76%
3.67%
Gross Profit
754.00M
4.43%
9.12%
Operating Income
399.00M
22.77%
29.97%
Net Income
257.00M
42.78%
37.43%
EPS
0.18
50.00%
38.46%
Key Financial Ratios
currentRatio
1.17
grossProfitMargin
21.3%
operatingProfitMargin
11.3%
netProfitMargin
7.27%
returnOnAssets
1.56%
returnOnEquity
6.62%
debtEquityRatio
1.73
operatingCashFlowPerShare
$0.66
freeCashFlowPerShare
$0.57
dividendPayoutRatio
71.1%
priceToBookRatio
3.56
priceEarningsRatio
13.44
Net Income vs. Revenue
Expense Breakdown
Management Commentary
- Management Focus on Safety: "Safety is our number one priority... resulting in a 12% reduction in injuries compared to fiscal '23." (Peter Konieczny)
- Volume and Margin Trends: "We delivered another quarter of solid margin expansion and earnings per share growth above the expectations we set out in April." (Peter Konieczny)
- Looking to the Future: "We expect our earnings and volume performance to continue to improve, which is reflected in our fiscal '25 guidance." (Peter Konieczny)
"We expect the growth in the underlying business will remain strong in fiscal '25."
— Peter Konieczny
"Our commitment to our people and to their safety remains our most important value... and we continue to aspire to achieve our ultimate goal of zero injuries."
— Peter Konieczny
Forward Guidance
For fiscal year 2025, management anticipates revenue growth of 3% to 8%, pointing to an underlying business growth aligned with historical averages. EPS expectations are set between $0.72 to $0.76 per share, taking into consideration a 4% headwind from normalized incentive compensation. The emphasis remains on strong cash generation, with projected free cash flow between $900 million to $1 billion, thereby sustaining dividends and funding growth initiatives. Management highlighted the importance of strategic M&A as a key driver for incremental growth and value creation.
Competitive Position
Company
Gross Margin
Operating Margin
Return on Equity
P/E Ratio
AMCR Focus
21.33%
11.30%
6.62%
13.44%
CCK
17.00%
11.90%
1.33%
85.98%
AVY
27.90%
12.80%
7.50%
21.61%
PKG
21.20%
13.80%
4.73%
19.29%
SEE
28.10%
15.20%
22.60%
10.64%
Gross Profit Margin
Operating Profit Margin
Return on Equity
P/E Ratio Comparison
Investment Outlook
Amcor plc’s outlook remains positive, backed by solid operational execution and a clear strategic focus toward growth in emerging markets and premium product categories. With strong earnings forecast and a healthy cash flow profile, the company is well-positioned to meet its financial commitments and shareholder expectations. Investors should monitor the execution of management’s operational strategies, particularly in managing costs and responding to shifting consumer demands. The successful management of above-discussed risks will be critical in maintaining momentum and delivering on growth targets.
Key Investment Factors
Growth Potential
Amcor's growth prospects appear solid with increasing demand in flexible packaging, and a return to volume growth driven by improved operational efficiencies and customer relationships. The company’s geographic diversification, particularly in emerging markets, bolsters its expansion opportunities.
Profitability Risk
Main risks include exposure to consumer discretionary spending patterns, especially in the beverage segment, which may be susceptible to economic downturns. Additionally, ongoing inflationary pressures and supply chain disruptions remain concerns.
Financial Position
Amcor's balance sheet is characterized by a total debt of $6.69 billion and total assets of $16.52 billion, resulting in a debt-to-equity ratio of 1.73. The leverage ratio stands at 3.1 times, which is manageable given current cash flow metrics. The company's strong cash position of $588 million provides a buffer for meeting liabilities and capital expenditures.
SWOT Analysis
Strengths
Strong market position in the packaging industry
Effective cost management resulting in margin expansion
Diverse product offerings across multiple sectors (flexible and rigid packaging)
Strong cash flow generation and commitment to returning value to shareholders
Weaknesses
Dependence on discretionary spending in the beverage industry
Exposure to raw material costs that could affect profitability
Potential for market share challenges in certain segments due to lower demand
Opportunities
Expansion in emerging markets and higher-value categories
Potential M&A opportunities to support growth
Growing focus on sustainability and recyclable products could enhance brand value
Threats
Economic downturns affecting consumer spending
Regulatory changes impacting the packaging industry