Amcor plc

Company Overview

Business Model: Amcor plc is the global leader in developing and producing responsible consumer packaging and dispensing solutions across a variety of materials for nutrition, health, beauty, and wellness categories. The Company's core offerings include flexible packaging, rigid packaging, cartons, and closures. It utilizes a diverse range of materials such as polymer resins, aluminum, fiber, paper, recycled, and bio-based materials. Amcor plc serves a broad spectrum of end markets, including food, beverage, pharmaceutical, medical device, home and personal care, and other consumer goods.

Market Position: Amcor plc holds a leading position as a global leader in consumer packaging and dispensing solutions. The Company maintains strong positions in large, resilient, and growing end markets, leveraging competitive advantages such as global scale and breadth, innovation, material science, technical and innovation capabilities, and leadership. No single customer accounted for more than 10% of consolidated net sales in the last three fiscal years, indicating a diversified customer base.

Recent Strategic Developments:

• Merger with Berry Global Group, Inc.: Completed on April 30, 2025, this merger significantly expanded Amcor plc's global footprint and capabilities. Berry Global Group, Inc. shareholders received 7.25 Amcor ordinary shares for each share of Berry common stock. The total purchase consideration was $10.4 billion, with approximately $5.2 billion of Berry Global Group, Inc. debt assumed.
• Berry Plan: Initiated in the fourth quarter of fiscal year 2025, this plan aims to integrate the combined organization. It targets approximately $530 million of pre-tax synergies (from procurement, supply chain, and general and administrative savings), $60 million in annual financial synergies, and $60 million in pre-tax earnings benefits from growth synergies by the end of fiscal year 2028. The total pre-tax cash cost for the Berry Plan is estimated at $280 million, net.
• 2023 Restructuring Plan: This plan was completed as of June 30, 2025, incurring cash and non-cash net expenses of $225 million. Cumulative net cash outflows to date total $114 million, with $28 million in remaining cash expenditures.

Geographic Footprint: Amcor plc operates in over 40 countries, with approximately 400 manufacturing facilities globally.

• Sales Distribution (Fiscal Year 2025):
  • North America: $7,194 million (47.9% of total revenue)
  • Europe: $4,321 million (28.8% of total revenue)
  • Latin America: $1,790 million (11.9% of total revenue)
  • Asia Pacific: $1,704 million (11.4% of total revenue) Approximately 75% of the Company's sales revenue is generated from developed markets, with the remaining 25% from emerging markets.

Financial Performance

Revenue Analysis

Profitability Metrics:

• Gross Margin: 18.9%
• Operating Margin: 6.7%
• Net Margin: 3.4%

Investment in Growth:

• R&D Expenditure: $120 million (0.8% of revenue) in fiscal year 2025. Expected to be approximately $180 million annually after the Merger.
• Capital Expenditures: $580 million in fiscal year 2025.
• Strategic Investments: The Merger with Berry Global Group, Inc. involved $10.4 billion in purchase consideration and the assumption of approximately $5.2 billion in debt.

Business Segment Analysis

Global Flexible Packaging Solutions

Financial Performance:

• Revenue: $10,872 million (+5.2% YoY)
• Operating Margin: 13.4% (Adjusted EBIT as a percentage of net sales)
• Key Growth Drivers: Favorable sales volumes of approximately 2% across all key regions and strong cost performance of approximately 11%. This was partially offset by an unfavorable price/mix impact of approximately 1%, primarily due to lower volumes in high-value healthcare categories in the first half of the year.

Product Portfolio:

• Films and other flexible products
• Specialty flexible folding cartons

Market Dynamics:

• Serves diverse industries including food and beverage, medical and pharmaceutical, fresh produce, snack food, personal care, and other sectors.

Sub-segment Breakdown:

• Films and other flexible products: $9,841 million revenue (FY2025)
• Specialty flexible folding cartons: $1,031 million revenue (FY2025)

Global Rigid Packaging Solutions

Financial Performance:

• Revenue: $4,137 million (+25.1% YoY)
• Operating Margin: 9.1% (Adjusted EBIT as a percentage of net sales)
• Key Growth Drivers: Positive impacts from the Merger of approximately 62% and strong cost performance of approximately 16%. This was partially offset by unfavorable volumes of approximately 2% and an unfavorable price/mix impact on earnings of approximately 17%.

Product Portfolio:

• Rigid containers and closures
• Preforms and closures
• Plastic caps

Market Dynamics:

• Primarily serves beverage and food products, including carbonated soft drinks, water, juices, sports drinks, milk-based beverages, spirits and beer, sauces, dressings, spreads, and personal care items.

Capital Allocation Strategy

Shareholder Returns:

• Share Repurchases: $47 million was used for the purchase of treasury shares in fiscal year 2025 to satisfy share-based compensation awards. The previously approved $100 million buyback program expired in the third quarter of fiscal year 2025 with no repurchases made under it during the fiscal year.
• Dividend Payments: $845 million in fiscal year 2025, with a dividend per share of $0.5075.
• Future Capital Return Commitments: The Merger with Berry Global Group, Inc. is expected to significantly increase cash generation, enabling increased investment in organic growth, targeted acquisitions, and enhanced shareholder returns.

Balance Sheet Position:

• Cash and Equivalents: $827 million (as of June 30, 2025)
• Total Debt: $14,098 million (as of June 30, 2025)
• Net Cash Position: $13,271 million (Net Debt as of June 30, 2025)
• Credit Rating: Maintains investment grade credit ratings from three internationally recognized credit rating agencies.
• Debt Maturity Profile:
  • Fiscal year 2026: $2,128 million
  • Fiscal year 2027: $2,478 million
  • Fiscal year 2028: $1,730 million
  • Fiscal year 2029: $501 million
  • Fiscal year 2030: $2,927 million (includes commercial paper supported by a 5-year syndicated facility)

Cash Flow Generation:

• Operating Cash Flow: $1,390 million in fiscal year 2025, an increase of $69 million from fiscal year 2024, primarily driven by lower working capital outflows.

Operational Excellence

Production & Service Model: Amcor plc is a global leader in developing and producing responsible consumer packaging and dispensing solutions. The Company leverages its global product innovation and sustainability expertise to solve packaging challenges, offering a wide, differentiated portfolio of multi-format packaging solutions. Its operational philosophy involves working closely with customers to identify feasible, high-performance, and responsible packaging solutions, and innovating new ones where solutions do not currently exist, drawing on its heritage in design, science, and manufacturing.

Supply Chain Architecture: Key Suppliers & Partners:

• Raw Materials: Polymer resins and films, paper, linerboard, rayon, polyester fiber, inks, solvents, adhesives, aluminum, and chemicals are purchased from a variety of global industry sources. The Company is not significantly dependent on any one supplier.
• Technology Partners: Collaborates with customers, suppliers, non-governmental organizations, promising startups, and cross-industry initiatives to drive innovation and address sustainability challenges.

Facility Network:

• Manufacturing: Operates approximately 400 manufacturing facilities in over 40 countries. The Global Flexible Packaging Solutions Segment has 210 facilities in 36 countries (75% owned, 25% leased), while the Global Rigid Packaging Solutions Segment has 213 facilities in 34 countries (55% owned, 45% leased).
• Research & Development: Maintains a global network of Innovation Centers.
• Distribution: Sales offices and plants are strategically located primarily throughout Europe, North America, Latin America, and the Asia-Pacific regions to provide prompt and economical service.

Operational Metrics:

• The Company's EnviroAction program has significantly improved management of energy, greenhouse gas emissions, water, and waste in manufacturing locations.

Market Access & Customer Relationships

Go-to-Market Strategy: Distribution Channels:

• Direct Sales: Sales are predominantly made through a direct sales force, supported by product development engineers, design technicians, field service technicians, and customer service teams.
• Geographic Reach: Sales offices and plants are located primarily throughout Europe, North America, Latin America, and the Asia-Pacific regions.

Customer Portfolio:

• Customer Concentration: No single customer accounted for more than 10% of consolidated net sales in the last three fiscal years, though customer concentration can be more pronounced within certain businesses.

Geographic Revenue Distribution:

• North America: 47.9% of total revenue (FY2025)
• Europe: 28.8% of total revenue (FY2025)
• Latin America: 11.9% of total revenue (FY2025)
• Asia Pacific: 11.4% of total revenue (FY2025)
• Growth Markets: The Company expects to continue expanding operations in emerging markets.

Competitive Intelligence

Market Structure & Dynamics

Industry Characteristics: Amcor plc operates in highly competitive geographies and end-use areas, characterized by varying barriers to entry, industry structures, and competitive behavior. Competition primarily revolves around service, sustainability, innovation, quality, and price. The Company serves large, resilient, and growing end markets, but faces challenges from softer consumer demand, customer order volatility, and increasing pressure to reduce packaging waste and the use of petrochemical components.

Competitive Positioning Matrix:

Direct Competitors

Primary Competitors: 3M, AptarGroup, Inc., Ball Corporation, Inc, CCL Industries Inc., Crown Holdings, Inc., Graphic Packaging Holding Company, Huhtamaki Oyj, International Paper Company, Mayr-Melnhof Karton AG, O-I Glass, Inc., Sealed Air Corporation, Sigma Plastics Group, Silgan Holdings Inc., and Sonoco Products Company, along with a variety of privately held companies.

Emerging Competitive Threats: Competitors may develop or utilize disruptive technologies or other technological innovations.

Competitive Response Strategy: The Company aims to maintain its competitive advantage by continuously adapting to changes in consumer demand, focusing on product innovation, and taking proactive price and cost actions to offset inflation and align its cost base with market dynamics.

Risk Assessment Framework

Strategic & Market Risks

Market Dynamics:

• Consumer Demand: Vulnerable to changes in consumer demand patterns, customer requirements, and alternative preferences for products or packaging formats (e.g., due to cost, economic conditions, regulatory developments, or environmental concerns like packaging waste reduction).
• Technology Disruption: Risk of competitors developing or utilizing disruptive technologies or other technological innovations that could impact market position.
• Customer Concentration: While no single customer exceeds 10% of consolidated net sales, the loss of key customers, a reduction in their production requirements, or consolidation among key customers could significantly impact sales and profitability.

Operational & Execution Risks

Supply Chain Vulnerabilities:

• Raw Material Volatility: Exposure to price fluctuations or shortages in polymer resins, films, paper, inks, solvents, adhesives, aluminum, and chemicals due to economic conditions, currency fluctuations, geopolitical risks, and environmental regulations.
• Production & Supply Disruptions: Subject to operational disruptions (mechanical failures, natural disasters, geopolitical conflicts, health crises), shortages in manufacturing inputs, and risks associated with development projects (cost overruns, delays).
• Labor Relations: Approximately 37% of the workforce is covered by collective bargaining agreements, posing risks of labor disputes and challenges in renewing agreements at acceptable terms. Geographic Concentration:
• International Operations: Operations in over 40 countries, including emerging markets, expose the Company to risks from changes in fiscal/regulatory regimes, local laws, sanctions, trade restrictions, geopolitical events, and health crises.
• Climate Change Impacts: Physical risks from climate change (natural disasters, extreme weather) could impact facilities, workforce, inventory, and supply chains, potentially leading to production downtime, increased costs, or relocation expenses. Capacity Constraints:
• Key Facility Disruption: A significant disruption at one of its key manufacturing facilities could adversely affect business operations and financial results, despite facility diversification and insurance coverage.

Financial & Regulatory Risks

Market & Financial Risks:

• Interest Rate Risk: Approximately 17% of indebtedness is subject to variable interest rates, making borrowing costs sensitive to rising interest rates.
• Foreign Exchange: Exposed to transactional and translational foreign exchange rate risk due to global operations, particularly with the Euro, Brazilian Real, Swiss Franc, Chinese Yuan, and United Kingdom Pound Sterling against the U.S. dollar.
• Asset Impairment: Significant goodwill and other intangible assets ($18.7 billion as of June 30, 2025) are subject to annual impairment tests, with potential for non-cash charges if fair values decline. Regulatory & Compliance Risks:
• Environmental Regulations: Subject to broad environmental laws and regulations, including those related to emissions, waste management, and emerging rules like Extended Producer Responsibility (EPR) and restrictions on substances like PFAS, which could increase costs or limit material use.
• ESG Regulations: Rapidly evolving and unharmonized ESG regulations across jurisdictions increase compliance complexity and costs, with potential for fines or reputational damage if targets are not met.
• Tax Law Changes: Subject to complex tax laws in multiple jurisdictions, with potential for additional tax liabilities from audits or changes in laws (e.g., OECD's Pillar Two rule).

Geopolitical & External Risks

Geopolitical Exposure:

• Global Instability: Geopolitical events (Russia-Ukraine conflict, Middle East conflict, China-Taiwan tensions) can lead to economic downturns, supply chain disruptions, inflationary pressures, and increased cybersecurity risks.
• Trade Relations: Changes in international trade policies, including tariffs and customs regulations, could impact raw material costs, supply, and market demand for products. Sanctions & Export Controls:
• Compliance Requirements: Operations in countries subject to economic sanctions require robust internal processes and control procedures to prevent breaches of laws related to money laundering, corruption, export control, and bribery.

Innovation & Technology Leadership

Research & Development Focus: Core Technology Areas:

• Packaging Innovation & Design: Focuses on developing differentiated products, services, and processes to protect customer products and fulfill consumer needs.
• Sustainability & Circularity: Drives circularity and decarbonization, championing effective substrate solutions to eliminate waste, lower carbon footprint, and increase recycling rates.
• Advanced Materials Science: Innovates across new materials, formats, functions, and technologies to provide products with superior clarity, protection, design versatility, consumer safety, convenience, cost efficiency, barrier properties, and environmental performance. Innovation Pipeline:
• Investment Level: Expects to spend approximately $180 million annually on R&D after the Merger, not including continuous improvement investments.
• Intellectual Property: Holds over 7,000 patents, registered designs, and trademarks.
• Infrastructure: Operates a global network of Innovation Centers.

Intellectual Property Portfolio:

• Patent Strategy: Owns or licenses more than 5,000 United States and other country patents and patent applications related to its products, manufacturing processes, and equipment.
• Trade Secrets: Relies on trade secrets, know-how, and other unpatented proprietary technology.
• IP Litigation: Faces risks related to defending its intellectual property rights and potential infringement claims from third parties.

Technology Partnerships:

• Engages in collaborations with customers, suppliers, non-governmental organizations, promising startups, and cross-industry initiatives to foster innovation and address global challenges.

Leadership & Governance

Executive Leadership Team

Leadership Continuity: The Company's human capital strategy emphasizes leadership development and succession planning as key drivers of a strong and resilient workforce.

Board Composition: The Board of Directors receives annual information technology and cybersecurity reports and has delegated quarterly cybersecurity report review to the Audit Committee.

Human Capital Strategy

Workforce Composition:

• Total Employees: Approximately 77,000 globally as of June 30, 2025, including part-time and temporary workers.
• Geographic Distribution: Approximately 38% in North America, 35% in Europe, Middle East, and Africa, 12% in Latin America, and 15% in the Asia Pacific region.
• Skill Mix: Focused on attracting, developing, and retaining a skilled and engaged workforce, including global executive management and operational teams. Approximately 37% of the workforce is covered by collective bargaining agreements.

Talent Management: Acquisition & Retention:

• Hiring Strategy: Responds to labor market challenges, including skilled labor shortages and wage inflation, through workforce planning and succession strategies.
• Employee Value Proposition: Anchored in "Possibility unpacked. For you. For the world," reflecting a commitment to creating meaningful development opportunities. Diversity & Development:
• Development Programs: Offers a range of executive development, leadership training (e.g., Executive Development Program, Senior Leader Development Program), mentoring, coaching, and tailored learning experiences to support career growth and strengthen organizational capability.
• Culture & Engagement: Launched a new Culture Framework with a shared purpose ("Together, we elevate customers, shape lives, and protect the future"), common values (Safety, Customers, Winning, Agility, Sustainability), and consistent behaviors. Utilizes global employee surveys, pulse checks, listening sessions, town halls, and Employee Resource Groups to foster engagement and inform leadership actions.

Environmental & Social Impact

Environmental Commitments: Climate Strategy:

• Emissions Targets: Committed to near-term and net zero science-based targets to reduce greenhouse gas (GHG) emissions and achieve net zero emissions by 2050. These targets were validated by the Science Based Targets initiative in fiscal year 2024.
• Decarbonization Roadmap: Outlines a strategy focusing on five key GHG emission levers: renewable electricity, supply chain footprint reduction, recycled materials, product redesign, and operational efficiency. Supply Chain Sustainability:
• Engages with upstream and downstream partners to develop a more responsible packaging value chain.
• Committed to increasing the amount of recycled materials used, with a target of 30% by 2030. Social Impact Initiatives:
• Guided by a purpose of elevating customers, shaping lives, and protecting the future, the Company aspires to improve the quality of lives, protect ecosystems, and preserve natural resources for future generations.

Business Cyclicality & Seasonality

Demand Patterns:

• Seasonal Trends: The Company's business and operations are subject to moderate seasonality, with demand typically increasing towards the end of the fiscal year due to higher demand for beverage and food products in certain markets.
• Economic Sensitivity: Demand for products is dependent on consumer demand for packaged goods, making the business sensitive to global economic conditions, geopolitical events, and inflation.

Planning & Forecasting:

• Historically, cash flow from operations is lower in the first half of the fiscal year and higher in the second half, influenced by moderate seasonality, working capital requirements, and the timing of certain cash payments.

Regulatory Environment & Compliance

Regulatory Framework: Industry-Specific Regulations:

• Subject to broad governmental laws and regulations across multiple jurisdictions, including environmental, health, and safety laws.
• Operations in healthcare packaging and food and beverage packaging are subject to specific local and international standards. International Compliance:
• Operates in over 40 countries, exposing it to diverse and dynamic legal, regulatory, and political systems, including tax, labor, foreign investment, and foreign exchange control laws. Trade & Export Controls:
• Subject to trade restrictions, sanctions, and quotas, and operates in countries subject to economic sanctions. Compliance with trade policy, tariffs, and customs regulations is a key focus.

Legal Proceedings:

• Routinely involved in lawsuits, regulatory inquiries, and governmental proceedings in the ordinary course of business, including product liability claims and environmental matters. Accruals for estimated losses are recorded when probable and estimable.

Tax Strategy & Considerations

Tax Profile:

• Effective Tax Rate: 20.8% in fiscal year 2025, up from 18.0% in fiscal year 2024, largely due to non-deductible expenses related to the Merger.
• Geographic Tax Planning: Operates in numerous tax jurisdictions globally and is a tax resident of the United Kingdom of Great Britain and Northern Ireland.
• Tax Reform Impact: The OECD's Pillar Two rule (15% global minimum tax) is applicable to the Company from July 1, 2024, with ongoing analysis of its impact. The One Big Beautiful Bill Act (OBBBA) signed in July 2025 is not expected to have a material impact on the Company's income tax expense, net tax assets or liabilities, or cash flows.

Insurance & Risk Transfer

Risk Management Framework:

• Insurance Coverage: Seeks protection from key operational risks through the purchase of insurance, with a significant portion placed with third-party reinsurers covering property damage and business interruption.
• Risk Transfer Mechanisms: Retains a portion of insurable risk through its captive insurance companies located in Singapore and Guernsey.