Amcor plc

Hello and welcome to the AMCOR first quarter 2025 results conference call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. And if you would like to ask a question during this time, simply press star 1 on your telephone keypad. I would now like to take the conference over to Tracy Whitehead, Head of Investor Relations. You may begin.

Thanks operator and thank you everyone for joining AMCOR's fiscal 25 first quarter earnings call. Joining today is Peter Connichney, Chief Executive Officer and Michael Casamento, Chief Financial Officer. Let me make a few items before I hand, note a few items before I hand over. On our website amcor.com under the investor section, you'll find today's press release and presentation which will be discussed on this call. Please be aware that we'll also discuss non-GAAP financial measures and related reconciliations can be found in that press release and presentation. Remarks will also include forward-looking statements that are based on management's current views and assumptions. The second slide in today's presentation lists several factors that could cause future results to be different than current estimates. Reference can be made to AMCOR's SEC filings including our statements on Form 10-K and 10Q for further details. Please note that during the question and answer session, we request that you limit yourself to a single question and then rejoin the queue if you have any additional questions or follow-ups. Over to you, PK.

Thank you, Tracy, and thank you to all who have joined us for today's call. I'm pleased to report that our business continues to build on the momentum we've delivered since the beginning of the calendar year with another quarter of solid financial performance to kick off fiscal 2025. Our results are aligned with the expectations we set out in August and give us the confidence to reaffirm our guidance today. We start as always with safety on slide three. The safety and well-being of our people is a value deeply embedded in OMCOR's culture, and I'm incredibly proud of our collective commitment to safety. We continue to achieve industry-leading performance with another 13% reduction in injuries compared to the same quarter last year and 73% of our sites remaining injury-free for more than a year. Before we turn to the first quarter, I'd like to take a few minutes to talk about the strategic actions we're taking to evolve into an even stronger company. Amcor is an outstanding company with a strong value space culture, highly talented people and significant growth potential. We have a strategy that remains relevant to our business and does not require revolutionary change. I begin my tenure as CEO with a good understanding of where Amcor is today and with a strong and clear vision of where Amcor will be in the future. I just covered what will always be our number one priority, safety. Our commitment here will never change and the health and safety of our team members comes before anything else. The unrelenting focus we have to safety has been rewarded with industry-leading metrics and performance, as I just shared. which is an excellent example of what Amcor can achieve when we're focused and aligned on our priorities. Second only to safety is the customer, as seen on slide four. I believe we have an excellent opportunity to become an even stronger company by accelerating our volume-driven organic growth through an unwavering focus on our customers, on sustainability, and on our portfolio. With our customers, we have two clear, immediate opportunities. touches on our culture, talent, and organization. We will instill a stronger growth-oriented and customer-first mindset across Amcor. One of the first changes I made as CEO was appointing Fred Stephan, previously president Flexibles North America, to the newly created chief operating officer role. One of Fred's most important responsibilities is to ensure we fully leverage our scale and capabilities across the global flexible packaging businesses. Setting the org up in this way means We remove regional silos. We ensure best practices shared and deployed across the organization. We facilitate access to our entire product catalog anywhere in the world. And we drive efficiency across our manufacturing, operations, and equipment network. By redirecting operational responsibilities and reporting lines, this new structure also serves to elevate and enhance the role of our global management team to focus on strategic, bigger picture choices including those designed to further accelerate organic growth and shareholder returns. The second opportunity we have to win with our customers and accelerate our growth lies in ensuring all our teams have the growth capabilities, tools, and processes to operationalize growth and accelerate volumes while we maintain margin quality. I believe we can be better when it comes to service quality, speed to market, as well as building comprehensive pipelines of growth opportunities which are managed rigorously to drive top line growth. For the last several months, we have allocated additional time and resources to expand on our commercial excellence framework and to make sure we get the basics right 100% of the time. In addition, we are leveraging our global network of innovation centers to get even closer to our customers and develop the next generation of packaging solutions that meet their needs to preserve, protect, and promote their products in a way that supports circularity for the industry. Which brings me to sustainability. We have the opportunity to raise our sustainability profile and be an even stronger advocate in support of the best packaging solutions for consumers and customers to eliminate waste, lower carbon footprint, and increase recycling rates while preserving functionality. Selling sustainable packaging solutions benefits the planet while driving value for shareholders, and I'm confident we can increase the pace of our efforts to support packaging portfolio transition for our customers with good economic stewardship. In order to demonstrate our commitment to sustainability leadership, I elevated our own focus, appointing David Clark to the newly created role of Chief Sustainability Officer. Many of you will know Dave has been instrumental in advancing our sustainability agenda for many years, and we continue to make excellent progress, which is detailed in our 2024 sustainability report launched earlier this month. I've also tasked our teams to leverage the early wins we are having with mFibre to drive more growth from our innovative fiber-based offerings. And finally, portfolio. We will drive accelerated growth by capitalizing on the opportunity to further orient our mix towards faster-growing, higher-margin categories. We have been focusing on the priority categories of healthcare, meat, pet care, and premium coffee, which we have also supplemented with value-accretive acquisitions. I believe we can further accelerate organic growth by adding two additional areas, dairy and liquid applications. Both have significant global growth opportunities. My confidence in the ability to generate higher levels of organic volume growth consistently and stronger returns for our shareholders is underpinned by Ankur's proven ability to focus, execute and deliver, as we have demonstrated with safety. Turning to slide five. This focus will move us towards becoming the company Amcor will be known as in the future and my vision for Amcor. First, Amcor will be known as a sustainability champion. Amcor's purpose is grounded in safely and efficiently bringing essential food and medicine to people around the world through our innovative packaging solutions. We do this with a commitment to the planet, contributing to significantly limiting food waste. decarbonizing our products and developing packaging solutions that ultimately eliminate packaging waste in the environment. This is what inspires and motivates us to continue driving differentiation and value for our customers, employees and shareholders. And it is this combination of unique capabilities and a clear purpose that sets Amcoros up to be the sustainability partner of choice for our customers and drive the next generation of growth through circularity and decarbonization in a way no other company can. Second is market leadership. Our unmatched scale, global reach, and the breadth of our sustainable packaging solutions and service offerings position Samper to win as a critical supply partner to global, regional, national, and local customers. We will continue to build and expand on these strengths to help ensure Amcor becomes the go-to packaging solutions provider in our categories of choice for customers across the globe. Third, my vision is that Amcor will be well known for delivering consistent organic growth. As I've just covered, I see a clear opportunity to deliver higher levels of profitable volume-driven organic growth, creating an even stronger company and unlocking value for our stakeholders. And fourth, as an investment, Amco will be known globally for its highly compelling financial profile with consistent performance against our model of delivering 10% to 15% of annual value creation for shareholders. We expect to continue to generate significant free cash flow, maintain our investment-grade balance sheet, and execute against our capital allocation strategy, which does not change. I'm excited with my vision for Amco's future and with the priorities we have set geared toward accelerating growth. As reflected in our Q1 volume performance, we're already starting to see some initial green shoots as a result of our efforts to date. There are many more opportunities ahead and we will continue to be agile and evolve into an even stronger company. Now, turning to the quarter on slide six. I'm pleased we delivered another quarter of volume growth with a trajectory improving for the third consecutive quarter. This also contributed to earnings growth in line with our expectations. And as mentioned, the solid start to the year has given us confidence to reaffirm our full year guidance today. We're very optimistic on the demand trends we're seeing in the market, and we expect our volumes will continue to grow through the year. I'll now turn the call over to Michael to cover the result and outlook in more detail.