Amcor PLC

Amcor is supplying Tiptree, the preserves and spreads business owned by Wilkin & Sons, with packaging films containing certified 30% post-consumer recycled plastic for use in shrink film and pallet stretch wrap. The change covers Amcor's collation shrink film and Bontite Sustane stretch wrap, each made with 30% PCR content. Tiptree is making the switch before revisions to the UK Plastic Packaging Tax take effect in April 2027, under which post-industrial recycled material will no longer qualify towards the 30% minimum recycled plastic requirement, with only PCR content set to count. According to Amcor, the films are intended to preserve packaging, supporting efficiency, load stability and wider cost considerations. Tiptree chose the two film products because the PCR content is independently certified, which the companies said would assist with sustainability reporting. Production takes place at Amcor's UK facilities in Leominster and Bromborough, and both products hold RecyClass Recycled Plastics Traceability Certification under EN15343.

Amcor plc reported fourth-quarter and full-year results for the period ended June 30, 2026, with sales of US$6,398 million and net income of US$389 million in Q4, and declared a higher quarterly cash dividend of US$0.65 per share following its January 2026 1-for-5 reverse stock split. The company's decision to lift its quarterly dividend while converting it to A$0.92 per CDI for ASX investors underlines management's confidence in cash generation and appeals to income-focused shareholders across both US and Australian markets. The latest Q4 beat and higher dividend support the near term earnings and deleveraging catalyst, while the main risk remains execution on synergies and asset sales in an environment of only modest expected revenue growth. Amcor's narrative projects $23.9 billion revenue and $1.6 billion earnings by 2029, with some analysts assuming only about 2.3 percent annual revenue growth and earnings of roughly US$1.5 billion by 2029.

Amcor reported fiscal 2026 fourth-quarter adjusted earnings per share of $1.23, up 23% from a year earlier, as synergy gains from its acquisition of Berry Global, cost management and modest volume growth supported results amid elevated input-cost inflation. For the full fiscal year, adjusted EPS rose 13% to $4.02, with fourth-quarter revenue of $6.4 billion and adjusted EBITDA of $1.045 billion. The company captured $285 million in fiscal 2026 synergies, about 10% above its initial first-year target, and remains committed to $650 million over three years, while also securing nearly $140 million in Berry-related new business awards. Free cash flow was $1.3 billion, $200 million below guidance due to working-capital effects tied to the Middle East conflict, but Amcor expects to recover more than $500 million over the next year. The company projects adjusted EPS of $1.80 to $1.90 for the six-month transition period ending December 31, 2026, and expects double-digit adjusted EPS growth in calendar 2027.

Amcor has secured RecyClass Recycled Plastics Traceability Certification for certain grades of its Bontite Sustane stretch film. The approved films include specified amounts of post-consumer recycled content and are aimed at helping customers prepare for changes to the UK Plastics Packaging Tax due in 2027. The certification confirms that recycled plastics used in finished products are independently audited, traceable through production, and consistent with recognised European standards. Amcor noted that from April 2027, only post-consumer recycled content will count towards the 30% threshold under the UK tax rules. The Bontite films are produced at Amcor facilities in Leominster, UK, and Zele, Belgium, and are used by customers in beverage, manufacturing, retail, and consumer goods markets.

The global flexible packaging market is projected to grow from an estimated $242 billion in 2025 to $320.57 billion by 2031, at a compound annual growth rate of 4.8 percent, according to a new report from ResearchAndMarkets.com. The bags and sacks segment currently leads with a 43 percent market share, while flexible paper is expected to grow at a CAGR of 4.73 percent. The Asia-Pacific region holds a 38 percent market share, driven by packaged food demand and e-commerce growth. Key industry developments include Amcor's merger with Berry Global in April 2025 and TOPPAN's $1.8 billion acquisition of Sonoco's Thermoformed & Flexibles Packaging business. Sustainability trends and shelf-life extension demands are driving adoption, though raw material price volatility remains a restraint.

LyondellBasell has partnered with Mondelez International, Amcor, Taghleef Industries and other industry players to introduce an innovative flexible packaging solution for Marabou chocolate bars. The new packaging uses LYB's CirculenRevive polymers, made with 100% attributed recycled content through an ISCC PLUS-certified mass balance approach, enabling packaging with 75% recycled content. This move will help transform hard-to-recycle post-consumer mixed plastic waste into high-quality materials suitable for food packaging. LYB plans to supply future polymers for Marabou packaging from its MoReTec-1 catalytic chemical recycling plant, currently under construction in Wesseling, Germany, which is designed to process 50,000 metric tons of recycled feedstock annually. The project depends on collaboration across the packaging value chain, with LYB supplying the recycled polymers, Taghleef Industries manufacturing the base film, Amcor converting it into flexible packaging, and Mondelez bringing the final product to consumers. The new packaging also aligns with recycled-content requirements under the European Union's Packaging and Packaging Waste Regulation.

Amcor announced a collaboration with U.K.-based startup Kelpi to test seaweed-based, bio-derived coatings aimed at improving barrier performance and recyclability in its AmFiber fiber-based packaging range. The partnership pairs Kelpi's seaweed coating platform with Amcor's global R&D and manufacturing scale, supporting the company's push into renewable, recyclable packaging. The move aligns with Amcor's broader portfolio reshaping, including the completed sale of ESE World to Pacific Avenue Capital Partners, as management prunes lower-growth assets while testing new technologies. Amcor's narrative projects $23.9 billion revenue and $1.6 billion earnings by 2029, with some analysts forecasting up to $25.8 billion revenue and $2.3 billion earnings by 2028. The Kelpi collaboration could influence the investment case around sustainability, though near-term focus remains on stabilizing volumes, lifting margins, and managing leverage.

Amcor shares have gained 11.7% over the past month, yet a Discounted Cash Flow model estimates the stock is undervalued by 42.7% with an intrinsic value of about $75.63 per share, while earnings-based multiples suggest it is overvalued. The DCF model starts from trailing twelve-month free cash flow of roughly $815.7 million and assumes growth, supported by recent moves such as the sale of ESE World and new partnerships in sustainable and industrial packaging. However, Amcor trades at about 29.5 times earnings, close to the peer average of 29.9 times but well above the wider packaging industry average of roughly 15.0 times, and above Simply Wall St's fair P/E estimate of 24.2 times. The valuation split hinges on whether investors emphasize long-term cash generation or current peer multiples and sentiment, with execution on portfolio changes and projects key to turning the discount into an opportunity.

Amcor has announced a collaboration with U.K.-based startup Kelpi to explore next-generation coating technologies for its AmFiber fiber-based solutions platform. Amcor's research and development teams are evaluating Kelpi's proprietary bio-based seaweed coating technology, which aims to deliver barrier performance and compatibility with recycling streams for fiber-based packaging. The partnership supports Amcor's innovation strategy to enable more sustainable packaging while maintaining high functional standards, potentially reducing reliance on fossil fuel-derived feedstocks and lowering carbon footprint. The companies aim to evaluate commercially viable, scalable solutions for customers across various consumer goods sectors, supporting a circular economy for packaging.

Amcor has launched its Moda rotary vacuum chamber sealing technology in Brazil through a partnership with meat processor Barra Mansa Alimentos, marking the first deployment of the system in the country. The installation, part of Barra Mansa's new deboning line for its Oranges Alimentos brand, includes three Moda Vac high-speed systems that replace up to nine conventional belt chamber machines, boosting production capacity, vacuum performance, and process reliability. Amcor supplied packaging materials, equipment services, and technical support as part of the integrated project. Once all three lines are completed in 2026, Barra Mansa is expected to operate one of the region's most advanced rotary vacuum sealing systems. The move underscores Amcor's expansion in Latin America's protein market.