Consumer packaging company Amcor's Q4 sales growth tops expectations, helped by Berry Global acquisition

Overview

• Amcor fiscal Q4 net sales rise 43% yr/yr, beating analyst expectations

• GAAP net income for fiscal Q4 at a loss of $39 mln due to acquisition costs

• Co expects fiscal 2026 adjusted EPS growth of 12-17% and free cash flow of $1.8-1.9 bln

Outlook

• Amcor expects fiscal 2026 adjusted EPS of 80-83 cents per share, up 12-17%

• Company forecasts free cash flow of $1.8-1.9 bln in fiscal 2026

• Amcor aims for $260 mln in synergy benefits from Berry Global acquisition

• Company plans capital expenditure of $850-900 mln in fiscal 2026

Result Drivers

• BERRY GLOBAL ACQUISITION - Acquisition of Berry Global closed in April, contributing to 43% increase in Q4 net sales, excluding currency impact

• SYNERGY TARGETS - Integration of Berry Global on track with $260 million synergy benefits expected in fiscal 2026

• CORE PORTFOLIO - Amcor identified a $20 billion core portfolio in consumer packaging, focusing on nutrition and health solutions

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", 6 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the non-paper containers & packaging peer group is "buy"

• Wall Street's median 12-month price target for Amcor PLC is $11.00, about 9.6% above its August 13 closing price of $9.94

• The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 12 three months ago

Press Release: ID:nPn6qYXFxa