Amcor's Fourth-Quarter Sales Growth Cools After Berry Ramp
Reported sales rose 26% to $6.4 billion as acquired sales, raw-material pass-through and a $389 million profit swing defined the June quarter.
Amcor (AMCR), the global consumer-packaging maker, reported fourth-quarter net sales of $6,398 million, up 26% from a year earlier, a slower reported pace than the 77% increase in the March quarter and the 68% increase in the December quarter, as the Berry Global combination had already been fully embedded.
The 26% rise included about $962 million of acquired sales net of divestitures, or about 19% growth, with pass-through of higher raw-material costs adding about $280 million, or about 6%, foreign exchange about 2%, and volumes and price/mix a net (1%). Volumes were about 0.5% higher than estimated combined legacy Amcor and Berry volumes a year earlier, excluding non-core and divested businesses; price/mix was an unfavorable (1%) on comparable sales.
GAAP net income was $389 million, versus a $39 million loss a year earlier, and diluted EPS was $0.83 versus $(0.10). Adjusted EBITDA was $1,045 million, up 32% from $789 million. Adjusted diluted EPS was $1.23, up 23% from $1.00.
Adjusted EBIT was $836 million, up 37% from $611 million, including about $96 million of acquired EBIT net of divestitures, or about 15% growth. The remaining 19% mainly reflected about $100 million of Berry synergies and cost and productivity initiatives, including in non-core businesses. Adjusted net interest expense was $150 million, $36 million higher than the prior year, primarily from increased acquisition-related net debt.
Global Flexible Packaging Solutions net sales were $3,525 million, up 18% reported and 16% constant currency, including about $297 million of acquired sales net of divestitures, or about 10% growth. Segment volumes were about 1% higher, with pet food and protein up and healthcare down. Adjusted EBIT was $533 million, up 23% reported and 20% constant currency, with margin at 15.1% versus 14.5%. The remaining 13% constant-currency growth mainly reflected Berry synergies and cost and productivity.
Global Rigid Packaging Solutions net sales were $2,873 million, up 38% reported and 35% constant currency, including about $665 million of acquired sales, or about 32% growth. Excluding non-core businesses, volumes were about 0.5% higher, with foodservice and beauty & wellness up and liquids down. Adjusted EBIT was $352 million, up 61% reported and 57% constant currency, with margin at 12.3% versus 10.5%. The remaining 33% constant-currency variation mainly reflected Berry synergies and cost and productivity, including non-core businesses.
For the twelve months ended June 30, 2026, net sales were $23,506 million, up 57% from $15,009 million, including about $7.9 billion of acquired sales net of divestitures, or about 52% growth. Organic growth was (2%), with volumes (2%) and price/mix flat. GAAP net income was $1,106 million versus $511 million; diluted EPS was $2.38 versus $1.60. Adjusted EBITDA was $3,673 million, up 68% from $2,186 million. Adjusted diluted EPS was $4.02, up 13% from $3.56.
Full-year adjusted EBIT was $2,813 million, up 63% from $1,723 million, including about $842 million of acquired EBIT net of divestitures, or about 49% growth. The remaining 10% mainly reflected about $240 million of Berry synergies, partly offset by lower volumes. Free cash flow was $1,303 million after funding about $290 million of net transaction, restructuring and integration costs. Net debt was $12,897 million at June 30, 2026.
Global Flexible Packaging Solutions full-year net sales were $12,829 million, up 27% reported and 24% constant currency; adjusted EBIT was $1,789 million, up 28% reported and 26% constant currency, with margin unchanged at 13.9%. Global Rigid Packaging Solutions full-year net sales were $10,677 million, up 116% reported and 110% constant currency, including about $5.6 billion of acquired sales net of divestitures, or about 114% growth, with the remaining (4%) from lower volumes and price/mix. Full-year adjusted EBIT was $1,176 million, up 170% reported and 161% constant currency, with margin at 11.0%, 220 basis points higher than the prior year.
The board declared a quarterly cash dividend of 65.0 cents a share. Amcor will have a six-month reporting period from July 1, 2026, through December 31, 2026, as it transitions to a December 31 year-end. For that transition period, the company expects adjusted diluted EPS of $1.80 to $1.90 and leverage of 3.5x to 3.6x at December 31, 2026.