Amcor posts 7% sales growth as volumes strengthen

Amcor has reported stronger sales and broad-based packaging volume growth, with pet food, foodservice and beauty and wellness driving demand across its global operations.

The packaging group's net sales reached US$6.13 billion for the three months ended 30 September, compared with US$5.75 billion in the previous corresponding period. Organic volume growth was one per cent, increasing to three per cent across its focus categories.

The results are significant for Australia's packaging industry, with Amcor maintaining its position as a major supplier across flexible and rigid packaging markets and continuing to trade on the ASX.

Growth was recorded across nearly all end markets, led by pet food, foodservice and beauty and wellness. Volumes increased across all geographic regions, with emerging markets delivering the strongest performance.

Amcor's Global Flexible Packaging Solutions division generated US$3.36 billion in quarterly sales, up 10 per cent year on year. Adjusted earnings before interest and tax (EBIT) increased one per cent to US$414 million.

Its Global Rigid Packaging Solutions division recorded sales of US$2.77 billion, up two per cent on a constant currency basis. Excluding non-core businesses and divestments, volumes increased approximately four per cent.

The results also reflect continued integration benefits from Amcor's acquisition of Berry Global, with approximately US$50 million in synergies realised during the quarter. The company remains on track to deliver its three-year US$650 million synergy target.

However, higher operating costs are creating pressure on the business. Energy and distribution expenses accelerated towards the end of the quarter, affecting the timing of cost recovery and weighing on earnings.

Peter Konieczny, CEO of Amcor, said the company delivered solid operating results, supported by broad-based volume growth and progress against its integration targets.

He said actions were underway to address inflationary pressures, adding that the company did not expect the higher costs to affect its 2027 results.

Adjusted EBITDA was US$883 million, compared with US$909 million in the previous corresponding quarter, while adjusted EBIT remained broadly flat at US$689 million on a constant currency basis.

Cash flow was another area of pressure, with free cash outflow reaching US$820 million, compared with US$343 million a year earlier. Amcor attributed the movement largely to working capital impacts associated with resin price volatility linked to the Middle East conflict.

The company has consequently lowered its adjusted earnings per share outlook for the six-month transition period ending 31 December 2026 to US$1.70–US$1.80, from its previous forecast of US$1.80–US$1.90.

For Australian investors, Amcor's board declared an unfranked quarterly dividend of 94 Australian cents per CDI, payable on 16 December 2026.

Amcor is continuing to focus on volume growth, acquisition synergies and operational performance as it navigates cost pressures and changing demand across global packaging markets.