By the numbers: Q1 FY2026
Net sales: $5.75B
Up 71.3% year over year (the first full quarter of integration since acquisition of Berry Global closed April 30)
Global flexibles net sales: $3.26B
Up 27.6% year over year
Global rigid packaging net sales: $2.49B
210.6% year over year
Net income attributable to Amcor: $262M
Compared with net income of $191M a year prior
- Results: During an earnings call Wednesday, Amcor recapped its first full quarter with Berry Global integrated, which yielded $38 million worth of deal synergies. Amcor reported that volume performance was about the same from the previous quarter, but about 2% lower than estimated combined volumes for the legacy Amcor and Berry businesses in the same quarter last year.
- End market trends: End market performance represented a “mixed bag,” CEO Peter Konieczny described. Priority markets for Amcor like pet care proved resilient, but others were impacted by “value-conscious” consumer behavior, Amcor suggested, including meat and protein, food service, liquids and beauty and wellness.
- Flexibles and rigids: Volumes in the flexibles unit were down about 2.8% against Amcor and Berry’s combined metrics from the prior year. In North America, growth in healthcare and beauty and wellness offset weakness in nutrition categories like liquids, snacks and confectionery. Volume performance in the rigids business didn’t change much quarter to quarter, and volumes declined about 1% year over year, excluding the North America beverage business, which Amcor describes as “non-core.” Growth in pet care and specialty containers was offset by lower volumes in beauty and wellness, food and food service.
- North American beverage business: Amcor revealed on its last earnings call that it was reviewing alternatives for its North American beverage business. In an update Wednesday, Konieczny said Amcor is “pushing ahead” on that. “We're exploring a broad range of options. We said about 90 days ago, and I'll just repeat that today, that we're very open to all kinds of solutions here, including joint ventures or also partnerships. That is progressing, and we'll see how that plays out, but it's really hard to be more definitive on timing.”
- Other divestitures: Amcor recently entered agreements to sell two businesses for combined proceeds of approximately $100 million, Konieczny announced. CFO Michael Casamento, who will soon depart the company, described one as a small plant in Europe with sales less than $20 million, and the other as a joint venture. “We continue to review options to accelerate actions on non-core assets, and we anticipate additional actions this fiscal year,” Konieczny said.
- Berry synergies: Amcor reaffirmed previous financial guidance for fiscal year 2026, which ends June 30. The company projects fiscal 2026 pre-tax synergy benefits related to the Berry acquisition of at least $260 million, with about $50 million to $55 million expected in the second quarter, on its way to $650 million total by the end of FY2028.
- Outlook: Amcor expects FY26 free cash flow between $1.8 billion and $1.9 billion, which Amcor said is after deducting about $220 million of net cash integration and transaction costs related to the Berry acquisition. Amcor forecasts capital expenditures between $850 million and $900 million. Amcor’s guidance “does not take into account the impact of potential portfolio optimization actions which may be completed through the year,” the company stated in the earnings release.
