Amcor reports 2.6% decrease in sales in 3Q2024

Amcor reported a 2.6% decrease in sales in 3Q2024, compared to the same period last year. Net sales totaled $3.35MM and flexible net sales were  $2.55M, down 0.6% from the prior year.

 Net sales of rigid containers totaled US$801 million, 8.5% less than in the previous year.  Net income was $191M, compared to $152M in the same period of the previous year.

 Peter Konieczny, Amcor CEO, highlighted Amcor’s focus on orienting the packaging giant’s mix “toward higher-margin, faster-growing categories,” such as healthcare, meat, pet care and premium coffee, “which we have also complemented with value-enhancing acquisitions,” he added. Amcor’s first quarter of fiscal 2025 ended Sept. 30. The company reaffirmed its guidance for fiscal 2025, which runs through June 30. It expects adjusted free cash flow of between $900 million and $1 billion.

Rigid and flexible trends: For rigid packaging, Amcor noted lower beverage volumes in North America amid continued weakness in customer and consumer demand. In flexible packaging, the company noted continued destocking in the healthcare categories. But across the flexible business, overall volumes were up about 5% year-over-year, with higher volumes in meat, liquids, and fresh and frozen foods.

Amcor has also announced that it reached an agreement to sell for US$122 million its 50% interest in Bericap North America, a joint venture established in 1997 between Amcor Rigid Packaging and Bericap, based in Germany. It manufactures closures for the beverage, food and industrial end markets at three facilities in the U.S., Canada and Mexico. Its fiscal 2024 sales were about $190 million. Amcor said it does not expect the transaction to affect its fiscal 2025 financial outlook.