Amcor Reports Q3 2025 Financial Results with Decrease in Net Sales but Increase in Net Income

Amcor plc reported its financial results for the third quarter of fiscal year 2025, revealing a net sales figure of $3.333 billion, a decrease of 2% from $3.411 billion in the same period last year. The company's gross profit for the quarter was $654 million, down from $692 million, reflecting a gross profit margin of 19.6%. Net income attributable to Amcor increased to $196 million, or $0.136 per diluted share, compared to $187 million, or $0.129 per diluted share, in the prior year. The increase in net income was attributed to lower selling, general, and administrative expenses, which fell by $27 million, and higher other income, net, of $21 million.

For the nine months ending March 31, 2025, Amcor's net sales totaled $9.927 billion, down from $10.105 billion in the previous year. However, net income rose to $550 million from $473 million, driven by a reduction in restructuring and integration expenses and lower interest expenses. The company reported a diluted earnings per share of $0.380, up from $0.327 in the prior year. The overall decrease in sales was influenced by negative currency impacts and the effects of disposed operations, although there was a slight increase in sales volumes.

Strategically, Amcor completed the merger with Berry Global Group, Inc. on April 30, 2025, which is expected to enhance the company's scale and product development capabilities. The merger involved the issuance of approximately 846 million ordinary shares to Berry shareholders and the assumption of about $5.2 billion in debt. The company incurred $28 million in transaction costs related to the merger during the nine-month period. Additionally, Amcor has been implementing a restructuring plan initiated in early 2023, with an expected net cost of approximately $220 million aimed at offsetting earnings lost from the divestiture of its Russian business.

Operationally, Amcor's Flexibles segment reported net sales of $2.605 billion for the quarter, a slight increase from $2.598 billion, while the Rigid Packaging segment saw a decline in sales to $728 million from $813 million. The company continues to focus on cost-saving initiatives and has reported a decrease in selling, general, and administrative expenses as a percentage of net sales. As of March 31, 2025, Amcor's total assets stood at $18.042 billion, with total liabilities of $14.183 billion, resulting in shareholders' equity of $3.859 billion.

Looking ahead, Amcor anticipates ongoing challenges due to market volatility, including inflationary pressures and geopolitical tensions. The company remains committed to aligning its cost base with market dynamics and expects to continue taking price and cost actions to mitigate these challenges. The successful integration of Berry's operations and realization of anticipated synergies will be critical to achieving the expected benefits of the merger.