Sales rise sharply, while volumes continue to decline

In its first full financial year following the acquisition of Berry Global, Amcor increased sales by 57% to US$23.506 billion. The growth was largely attributable to the acquired operations. Organic sales declined by 2%.

Adjusted EBITDA (earnings before interest, taxes, depreciation and amortisation) rose from US$2.186 billion to US$3.673 billion in financial year 2026. Adjusted EBIT increased from US$1.723 billion to US$2.813 billion. The corresponding EBIT margin improved from 11.5% to 12.0%.

According to the company, acquired businesses net of divestments accounted for 52 percentage points of the 57% sales growth, equivalent to approximately US$7.9 billion. Currency effects contributed five percentage points, while the pass-through of changes in raw material costs added two percentage points. Volumes declined by around 2% over the full year.

Flexible packaging maintains stable margin

The Global Flexible Packaging Solutions segment generated sales of US$12.829 billion. Adjusted EBIT reached US$1.789 billion, while the margin remained unchanged at 13.9%. Organic sales were flat: volumes declined by 1%, while price and mix effects contributed a positive 1%.

In the fourth quarter, Amcor estimates that flexible packaging volumes were around 1% above the combined prior-year level of the former Amcor and Berry businesses. The company recorded growth in pet food and protein packaging. Volumes declined in healthcare. North America developed positively, while growth in emerging markets was driven primarily by Asia.

Sales in the Global Rigid Packaging Solutions segment increased to US$10.677 billion. The 116% rise was almost entirely attributable to the acquired Berry operations. Organic sales declined by 4%, while volumes fell by 3%.

The segment’s adjusted EBIT increased to US$1.176 billion. Its margin improved from 8.8% to 11.0%. Amcor attributed this primarily to synergies and cost measures. In the fourth quarter, volumes excluding activities classified as non-core increased by around 0.5%. Foodservice and beauty and wellness developed positively, while volumes declined in liquid packaging.

Higher raw material costs passed through

The pass-through of higher raw material costs increased group sales by approximately US$280 million in the fourth quarter. Around US$190 million of this amount related to flexible packaging and US$90 million to rigid packaging.

Against the backdrop of the conflict in the Middle East, Amcor held more material in stock at higher costs than originally planned to safeguard its ability to supply customers. This weighed on working capital. Free cash flow reached US$1.303 billion and therefore fell short of the previously published forecast. The figure included approximately US$290 million in transaction, restructuring and integration costs.

Synergy target exceeded

Amcor realised synergies of approximately US$285 million during the financial year, exceeding its original target of US$260 million. Around US$240 million came from administration, procurement, growth initiatives and other operational measures. Financial benefits contributed a further US$45 million.

The company continues to target total synergies of US$650 million by 30 June 2028. Amcor also reported acquisition-related new business with annualised sales of approximately US$140 million. No breakdown by packaging format, printing process or production site was published.

For the transition period from 1 July to 31 December 2026, Amcor expects adjusted earnings per share of between US$1.80 and US$1.90. Leverage is expected to be between 3.5 and 3.6 times adjusted EBITDA at year-end.