Amcor is considering the future of its $1.5bn North American beverage packaging business after operational challenges and integration setbacks following the acquisition of Berry Global.
The company reported a net loss of $39m for the quarter ending 30 June, compared with a $257m profit a year earlier, despite net sales rising 43.8% year on year to $5.08bn. The sharp revenue increase reflected the closing of the Berry acquisition in April 2025, which boosted rigid packaging sales 121.1% to $1.88bn and flexibles by 19.3% to $3.21bn.
Volumes, however, fell short of expectations, down 1.7% across the combined business, with particular weakness in North American beverage packaging. Amcor attributed the decline to operating issues at several high-volume sites and weaker consumer demand in discretionary categories such as snacks and confectionery.
Chief executive Peter Konieczny acknowledged the difficulties, stating: “I’m going to say it very loud and clear: We’re not happy with the performance of the North American beverage business in the fourth quarter.” He added that customers had faced service issues and the business had “tried to do too much” in flexing capacity.
Amcor has installed a new management team to stabilise the North American beverage unit and plans to strengthen operations before “exploring alternatives,” which could include divestiture. The group has also identified other smaller operations, worth roughly $1bn in combined sales, that may be subject to divestiture, restructuring or joint ventures.
Since finalising the Berry acquisition, Amcor has cut about 200 roles, closed one site and begun shutting four others. The company is focusing its portfolio on what it calls $20bn of “high-growth, high-margin” areas such as healthcare, beauty and wellness, pet food, food service, liquids and protein packaging.
Chief financial officer Michael Casamento said Amcor is not banking on a recovery in consumer demand in the near term, citing “the current macroeconomic environment and ongoing uncertainty surrounding tariffs.” He forecast broadly flat volumes in fiscal 2026 but projected free cash flow to double to between $1.8bn and $1.9bn, with adjusted earnings per share rising 12–17%. Capital expenditure is expected to range from $850m to $900m, while the company reaffirmed its synergy targets from the Berry integration: $260m in fiscal 2026 and $650m by the third year.
