Amcor reports year to date results and raises outlook for fiscal 2021

Highlights – Nine Months Ended March 31, 2021
•GAAP Net Income of $684 million, up 58%; GAAP earnings per share (EPS) of 43.8 cents per share, up 63%;
•Adjusted EPS of 51.5 cents per share, up 16% on a comparable constant currency basis;
•Adjusted EBIT of $1,144 million, up 9% on a comparable constant currency basis;
•$55 million Bemis cost synergies year to date; expect approximately $70 million in FY21 and well positioned todeliver at least $180 million by end of fiscal 2022;
•Quarterly dividend higher than this quarter last year at 11.75 cents per share;
•Approximately 2% of outstanding shares repurchased year to date; and
•Fiscal 2021 outlook for adjusted EPS growth raised to 14-15% in constant currency terms (previously 10-14%).

Strong result and continued momentum drive increased guidance for Fiscal 2021
Amcor’s CEO Ron Delia said: “Amcor is maintaining momentum and executing well in the face of a dynamic operating environment. As a result, we delivered strong year-to-date performance and we are raising our full year adjusted EPS growth outlook to 14-15% in constant currency terms.”
“The business delivered strong adjusted EBIT growth of 9% on a year to date basis and organic growth has continued to strengthen as we progress through the fiscal 2021 year. Delivery of cost synergies related to the Bemis acquisition continues to progress ahead of original expectations leaving us well positioned to exceed the original target with at least $180 million of pre-tax benefits by the end of fiscal 2022.”
“Amcor has a clearly defined, consistent capital allocation framework which starts with strong annual Free Cash Flow in excess of $1 billion and growing. We are actively investing in the future, expanding capacity in higher value segments and higher growth markets and increasingly using open innovation and now corporate venturing to identify new avenues of growth. Growth investments like these, along with continued strong execution, will enable continued momentum and reinforce our belief that the Amcor investment case has never been stronger.”

Bemis cost synergies
The Bemis flexible packaging business was acquired through an all-stock transaction in June 2019.
Amcor has continued to execute well against overhead, procurement and footprint initiatives and has delivered approximately $55 million (pre-tax) of incremental cost synergies year to date. Of this amount, approximately $45 million was recognized in the Flexibles segment and $10 million in Other.
Amcor expects incremental cost synergy benefits of approximately $70 million (pre-tax) in fiscal 2021 which is unchanged from previous guidance. Combined with the $80 million delivered in fiscal 2020, this will result in cumulative cost synergies of approximately $150 million (pre-tax) by the end of fiscal 2021 and leaves the business well positioned to deliver at least $180 million (original target) by the end of fiscal 2022.