Amcor Reports $3.3B Q3 Sales, Targets $650M Synergies Post-Berry Merger

Merger Completion and Strategic Positioning

Amcor plc announced the early completion of its merger with Berry Global on April 30, 2025, a milestone that CEO Peter Konieczny described as "defining" for the company. This accelerated closing positions Amcor to begin capturing synergies and integrating operations sooner than anticipated, setting the stage for enhanced market competitiveness and innovation capabilities.

The merger expands Amcor's footprint across flexible and rigid packaging sectors, broadening its customer offering and material science expertise. The combined entity now commands a global presence with over $23 billion in annual sales and operations spanning more than 40 countries.

Financial Performance Highlights

For the third quarter ending March 31, 2025, Amcor reported net sales of $3.333 billion, a 2% decline on a reported basis but a modest 0.4% increase on a comparable constant currency basis. Adjusted EBIT stood at $384 million, reflecting a slight increase of 0.4% year-over-year on a comparable basis, while adjusted EPS rose 5% to 18.0 cents per share.

Year-to-date results for the nine months ended March 31 showed net sales of $9.927 billion, with adjusted EBIT of $1.112 billion, up 3% on a comparable constant currency basis. Adjusted EPS grew 5% to 50.3 cents, underscoring steady operational momentum despite a challenging macroeconomic environment.

Segment Performance and Market Dynamics

The Flexibles segment, accounting for approximately 60% of sales, demonstrated resilience with volume growth of around 1% in the quarter and 2% year-to-date. Growth was driven by modest share gains and improved demand in healthcare and protein categories, particularly outside North America where consumer demand softened.

Conversely, the Rigid Packaging segment faced headwinds, notably in North America’s beverage market where volumes declined in the high single digits. Despite this, Latin America showed strong volume and price/mix gains. Adjusted EBIT for Rigid Packaging decreased 12% in the quarter, reflecting volume pressures and unfavorable price/mix impacts.

Synergy Targets and Fiscal Outlook

Amcor outlined plans to capture $650 million in cost, financial, and growth synergies over three years from the Berry merger, with $260 million expected in fiscal 2026 alone. This synergy delivery is projected to drive approximately 12% adjusted EPS accretion next year, signaling a significant boost to profitability.

Fiscal 2025 guidance was updated to reflect merger impacts in the final quarter, with adjusted EPS forecast narrowed to 72-74 cents per share and adjusted free cash flow expected between $900 million and $1 billion. The company also declared a quarterly dividend increase to 12.75 US cents per share, reflecting confidence in cash flow generation.

Integration and Market Implications

Management emphasized the rapid progress on integration, with dedicated teams focused on synergy capture and operational alignment. The earlier-than-expected merger close provides a runway for accelerated growth initiatives and margin improvement.

However, challenges remain, including softer consumer demand in key North American markets and the complexity of integrating two large global operations. Currency fluctuations and raw material cost pass-throughs also add layers of uncertainty to near-term performance.