Swiss company Amcor posts net sales of $3,241 mn in Q2

Amcor’s net sales of $3,241 million in the second quarter (Q2) of fiscal 2025 (FY25), ended December 31, were in line with last year on a reported basis. This included an unfavourable impact of approximately 1 per cent due to foreign exchange rate movements and a favourable impact of 1 per cent from the pass-through of higher raw material costs, amounting to approximately $20 million. Volumes were up 2.3 per cent compared with last year, improving on first quarter year over year volume growth of 1.6 per cent and the fourth consecutive quarter of sequential volume improvement. As expected, destocking continued in healthcare and demand remained soft in the North America beverage business through the December quarter, unfavourably impacting overall volumes by more than 1 per cent.  Across the balance of the business, overall volume growth was consistent with the first quarter, up approximately 4 per cent. Price/mix had an unfavourable impact of approximately 2 per cent primarily due to lower volumes in high value healthcare categories. On a comparable constant currency basis, sales returned to growth in the December quarter and were marginally higher than last year. Amcor’s Q2 net sales were $3,241 million, in line with last year. Volumes grew 2.3 per cent, but destocking in healthcare and soft demand in North America beverage impacted volumes. Adjusted EBIT of $363 million increased 5 per cent, with improved margins. For the six months ended December 2024, sales were slightly down 1 per cent, with volumes up 2 per cent. Adjusted EBIT of $363 million was approximately 5 per cent higher than last year on a comparable constant currency basis. Higher volumes, continued strong cost performance and benefits from restructuring initiatives were partly offset by unfavourable impacts from price/mix.  Adjusted EBIT margin improved to 11.2 per cent, a 40 basis point increase over the prior year, the company said in a press release. In the six months ended December 31, 2024, the company’s net sales of $6,594 million were 1 per cent lower than last year on a reported basis, including an unfavourable impact of approximately 1 per cent related to movements in foreign exchange rates. The pass through of lower raw material costs had no material impact on net sales.  Volumes were up 2 per cent compared with the same six month period last year. Price/mix had an unfavourable impact of approximately 3 per cent, primarily due to expected lower volumes in high value healthcare categories. On a comparable constant currency basis, net sales were down less than 1 per cent compared with last year. Adjusted EBIT of $728 million was 4 per cent higher than last year on a comparable constant currency basis reflecting higher volumes and strong cost performance, partly offset by unfavourable impacts from price/mix. Adjusted EBIT margin improved to 11.0 per cent, a 40 basis point increase over the prior year. For the twelve month period ending June 30, 2025, the company continues to expect adjusted EPS of approximately 72 to 76 cents per share, which represents comparable constant currency growth of 3 per cent to 8 per cent (includes approximately 4 per cent headwind related to normalisation of incentive compensation payments) compared with 70.2 cents per share in fiscal 2024. Fibre2Fashion News Desk (RR)