Sale not expected to impact FY25 financial
outlook
Proceeds to be used to reduce debt
ZURICH, Oct. 31,
2024 /PRNewswire/ -- Amcor (NYSE: AMCR, ASX:
AMC), a global leader in developing and producing responsible
packaging solutions, announced today it has entered into an
agreement to sell its 50% interest in Bericap North America (BCNA)
for $122 million. Established in
1997, BCNA is a 50/50 joint venture between Amcor Rigid Packaging
and Germany-based Bericap that
manufactures closures for beverage, food and industrial end markets
in three facilities in the U.S., Canada and Mexico.
Fiscal 2024 total sales for the joint venture were approximately
$190 million and Adjusted EBIT was
approximately $19 million, both of
which were fully consolidated under Amcor's Rigid Packaging
business. Adjusted net income attributable to Amcor was
approximately $8 million. Upon
closing on or before December 31,
2024, cash proceeds will be used to reduce debt. Net of a
resulting reduction in interest expense, the transaction is not
expected to have an impact on Amcor's financial outlook for fiscal
2025.
Amcor CEO Peter Konieczny
commented, "We've had a long and respectful relationship with
Bericap over the past 27 years. At this juncture, we have chosen to
unwind the joint venture given differing views on near-term capital
requirements and resulting returns. While Amcor continues to
operate in the closures space as it remains a category of interest,
we are committed to maintaining our disciplined approach to capital
allocation. We thank the Bericap team for the many years of
partnership and we wish them well for the future."
About Amcor
Amcor is a global leader in developing and producing responsible
packaging solutions across a variety of materials for food,
beverage, pharmaceutical, medical, home and personal-care, and
other products. Amcor works with leading companies around the world
to protect products, differentiate brands, and improve supply
chains. The Company offers a range of innovative, differentiating
flexible and rigid packaging, specialty cartons, closures and
services. The company is focused on making packaging that is
increasingly recyclable, reusable, lighter weight and made using an
increasing amount of recycled content. In fiscal year 2024, 41,000
Amcor people generated $13.6 billion
in annual sales from operations that span 212 locations in 40
countries. NYSE: AMCR; ASX: AMC
www.amcor.com I LinkedIn I YouTube
Cautionary Statement Regarding Forward-Looking
Statements
This document contains forward-looking statements regarding
Amcor. Such statements are based on the current expectations of the
management of Amcor and are qualified by the inherent risks and
uncertainties surrounding future expectations generally. Actual
results could differ materially from those currently anticipated
due to a number of risks and uncertainties. Neither Amcor nor any
of its respective directors, executive officers, or advisors,
provide any representation, assurance, or guarantee that the
occurrence of the events expressed or implied in any
forward-looking statements will actually occur. Risks and
uncertainties that could cause actual results to differ from
expectations include, but are not limited to: changes in consumer
demand patterns and customer requirements in numerous industries;
the loss of or reduction of demand from key customers; significant
competition in the industries and regions in which we operate; an
inability to expand our current business effectively through either
organic growth, including product innovation, investments, or
acquisitions; challenging global economic conditions; impacts of
operating internationally; price fluctuations or shortages in the
availability of raw materials, energy, and other inputs which could
adversely affect our business; production, supply, and other
commercial risks, including counterparty credit risks, which may be
exacerbated in times of economic volatility; pandemics, epidemics,
or other disease outbreaks;; a significant increase in our
indebtedness or a downgrade in our credit rating could reduce our
operating flexibility and increase our borrowing costs and
negatively affect our financial condition and results of
operations; rising interest rates that increase our borrowing costs
on our variable rate indebtedness and could have other negative
impacts; foreign exchange rate risk; a significant write-down of
goodwill and/or other intangible assets; a failure to maintain an
effective system of internal control over financial reporting; an
inability of our insurance policies, including our use of a captive
insurance company, to provide adequate protection against all of
the risks we face;; and other risks and uncertainties are
supplemented by those identified from time to time in our filings
with the Securities and Exchange Commission (the "SEC"), including
without limitation, those described under Part I, "Item 1A - Risk
Factors" in our Annual Report on Form 10-K for the fiscal year
ended June 30, 2024 and as updated by
our quarterly reports on Form 10-Q. You can obtain copies of
Amcor's filings with the SEC for free at the SEC's website
(www.sec.gov). Forward-looking statements included herein are made
only as of the date hereof and Amcor does not undertake any
obligation to update any forward-looking statements, or any other
information in this communication, as a result of new information,
future developments or otherwise, or to correct any inaccuracies or
omissions in them which become apparent, except as expressly
required by law. All forward-looking statements in this
communication are qualified in their entirety by this cautionary
statement.
Presentation of non-GAAP information
Included in this release are measures of financial performance
that are not calculated in accordance with U.S. GAAP. These
measures include adjusted EBIT (calculated as earnings before
interest and tax) and adjusted net income. In arriving at
these non-GAAP measures, we exclude items that either have a
non-recurring impact on the income statement or which, in the
judgment of our management, are items that, either as a result of
their nature or size, could, were they not singled out, potentially
cause investors to extrapolate future performance from an improper
base. Amcor also evaluates performance on a comparable constant
currency basis, which measures financial results assuming constant
foreign currency exchange rates used for translation based on the
average rates in effect for the comparable prior year period. In
order to compute comparable constant currency results, we multiply
or divide, as appropriate, current-year U.S. dollar results by the
current year average foreign exchange rates and then multiply or
divide, as appropriate, those amounts by the prior-year average
foreign exchange rates. We then adjust for other items affecting
comparability. While not all inclusive, examples of items
affecting comparability include the difference between sales or
earnings in the current period and the prior period related to
disposed, or ceased operations. Comparable constant currency net
sales performance also excludes the impact from passing through
movements in raw material costs. Management has used and
uses these measures internally for planning, forecasting and
evaluating the performance of the Company's reporting segments and
certain of the measures are used as a component of Amcor's Board of
Directors' measurement of Amcor's performance for incentive
compensation purposes. Amcor believes that these non-GAAP measures
are useful to enable investors to perform comparisons of current
and historical performance of the Company. These non-GAAP financial
measures should not be construed as an alternative to results
determined in accordance with U.S. GAAP. The Company provides
guidance on a non-GAAP basis as we are unable to predict with
reasonable certainty the ultimate outcome and timing of certain
significant forward-looking items without unreasonable
effort. These items include but are not limited to the impact
of foreign exchange translation, restructuring program costs, asset
impairments, possible gains and losses on the sale of assets, and
certain tax related events. These items are uncertain, depend
on various factors, and could have a material impact on U.S. GAAP
earnings and cash flow measures for the guidance period.
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SOURCE Amcor