AMCR

Amcor Plc 10-K Summary: Fiscal Year Ended June 30, 2026

Business Context and Reporting Period

Amcor Plc is a global leader in primary consumer packaging and dispensing solutions for nutrition, health, beauty, and wellness categories. This filing covers the fiscal year ended June 30, 2026. The period was defined by the full integration of the Berry Global Group, Inc. merger completed in April 2025, which significantly expanded Amcor's rigid packaging portfolio. The Company operates through two reportable segments: Global Flexible Packaging Solutions and Global Rigid Packaging Solutions. Effective July 1, 2026, Amcor changed its fiscal year-end from June 30 to December 31.

Key Financial Metrics

Material Changes vs. Prior Period

• Revenue Growth: Net sales increased 57% to $23.5 billion. Approximately $7.9 billion of this increase was attributable to the Berry merger, net of divestments. Organic volume decreased by approximately 2%, partially offset by favorable currency impacts ($649 million) and raw material cost pass-throughs ($240 million).
• Profitability: Net income attributable to Amcor increased 116% to $1.1 billion. This was driven by higher gross profit and other income, partially offset by increased SG&A expenses ($726 million increase), higher amortization of acquired intangibles ($312 million increase), and increased interest expense ($280 million increase) due to merger financing.
• Segment Performance:
  • Global Flexible Packaging: Sales up 27%; Adjusted EBIT up 28% to $1.79 billion (13.9% margin).
  • Global Rigid Packaging: Sales up 116% (driven by Berry); Adjusted EBIT up 170% to $1.18 billion (11.0% margin).
• Divestitures: The Company sold four businesses identified in its strategic portfolio review for $298 million and its investment in ePac for $79 million, realizing a cumulative pre-tax gain of $56 million.

Guidance, Outlook, and Risks

Outlook and Strategy: Management expects the Berry merger to generate approximately $650 million in pre-tax annual net cost synergies by the end of the third year post-merger (June 2028). The Company is executing a "Berry Plan" with an estimated total pre-tax cash cost of $280 million. Amcor aims to maintain an investment-grade credit rating and continues to return cash to shareholders via dividends ($1.195 billion paid in FY2026) and share buybacks (limited to tax withholdings in FY2026).

Key Risks and Contingencies:

• Geopolitical and Economic: Ongoing conflict in the Middle East has disrupted energy markets and supply chains, increasing raw material costs. Global inflation and trade policy uncertainty remain headwinds.
• Integration: Risks associated with integrating Berry operations and achieving targeted synergies.
• Raw Materials: Volatility in polymer resins, aluminum, and energy prices. While the Company has contractual pass-through mechanisms, there is a lag in adjusting prices.
• Argentina: Continued foreign exchange losses due to highly inflationary accounting ($19 million loss in FY2026).
• Goodwill: The Company holds $12.1 billion in goodwill. Impairment risks exist if future cash flows or market multiples decline significantly.

Investor Verification Checklist

• Merger Synergies: Verify the progress of the $650 million synergy target and the execution of the $280 million Berry Plan restructuring costs.
• Organic Volume Trends: Confirm the underlying organic volume decline of ~2% and assess the sustainability of price/mix improvements in the current economic environment.
• Debt Servicing: Review the impact of rising interest rates on the $14 billion debt load, noting that 15% of indebtedness is variable rate.
• Portfolio Review: Monitor the timeline and outcomes of the strategic review for the remaining $2 billion of identified non-core businesses.
• Argentina Exposure: Assess the potential for further foreign exchange losses given the volatile economic conditions in Argentina.