Amcor PLC (AMCR)
Profitability ratios
Return on sales
| Jun 30, 2025 | Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | |
|---|---|---|---|---|---|
| Gross profit margin | 18.88% | 19.89% | 18.54% | 19.39% | 21.24% |
| Operating profit margin | 6.72% | 8.90% | 10.26% | 8.52% | 10.27% |
| Pretax margin | 4.33% | 6.65% | 8.51% | 7.67% | 9.28% |
| Net profit margin | 3.40% | 5.35% | 7.13% | 5.53% | 7.30% |
The analysis of Amcor PLC’s profitability ratios over the period from June 2021 to June 2025 reveals several notable trends.
The gross profit margin showed a declining trend from 21.24% in June 2021 to a low of 18.54% in June 2023. However, there was a modest recovery observed in subsequent years, reaching 19.89% in June 2024 before slightly declining again to 18.88% in June 2025. This pattern indicates a compression in gross profitability over the period, potentially reflecting increased cost pressures or changes in product mix.
Operating profit margins followed a somewhat similar trajectory. They declined from 10.27% in June 2021 to a low of 8.52% in June 2022, before returning to approximately 10.26% in June 2023. After that, the margins declined again to 8.90% in June 2024 and further contracted to 6.72% in June 2025. The declining trend in operating margins suggests increased operating costs or decreased pricing power, reducing overall operational efficiency.
Pretax margins exhibited a decline from 9.28% in June 2021 to 7.67% in June 2022, then improved slightly to 8.51% in June 2023. Nonetheless, they declined once more to 6.65% in June 2024 and further shrank to 4.33% in June 2025. This pattern indicates reduced profitability at the pre-tax level, likely driven by increased expenses or non-operating costs impacting overall profitability.
The net profit margin consistently declined throughout the period, from 7.30% in June 2021 to 5.53% in June 2022. It then increased slightly to 7.13% in June 2023, followed by a downward trend to 5.35% in June 2024 and further to 3.40% in June 2025. The persistent compression of net profit margins points towards declining bottom-line profitability, potentially influenced by the same factors affecting gross and operating margins, compounded by increased tax burdens or interest expenses.
Overall, the analysis indicates a general downward trend in Amcor PLC’s profitability ratios over the five-year period, with partial recoveries followed by further declines. The narrowing margins across gross, operating, pretax, and net profit levels suggest increasing cost pressures and diminished profitability efficiency, which could be a concern for long-term financial sustainability if the trends persist.
Return on investment
| Jun 30, 2025 | Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 2.72% | 7.35% | 8.87% | 7.11% | 7.69% |
| Return on assets (ROA) | 1.38% | 4.42% | 6.16% | 4.62% | 5.46% |
| Return on total capital | 8.92% | 32.41% | 38.28% | 32.31% | 28.27% |
| Return on equity (ROE) | 4.36% | 18.81% | 26.03% | 19.72% | 19.71% |
The profitability ratios of Amcor PLC over the specified period demonstrate notable fluctuations indicative of evolving operational and financial performance.
Starting with the Operating Return on Assets (Operating ROA), the data indicates an initial decline from 7.69% in June 2021 to 7.11% in June 2022, followed by a significant improvement to 8.87% in June 2023. However, this upward trend diminishes in subsequent years, with a decrease to 7.35% in June 2024 and a sharp decline to 2.72% in June 2025. This pattern suggests that operational efficiency in utilizing assets temporarily improved mid-period but subsequently deteriorated, particularly in the latest year.
The Return on Assets (ROA), reflecting overall profitability relative to total assets, shows a decline from 5.46% in June 2021 to 4.62% in June 2022. It then recovers somewhat in June 2023 to 6.16%. Despite this short-term recovery, the ratio declines again, registering 4.42% in June 2024 and a marked decrease to 1.38% in June 2025, indicating reduced overall asset efficiency and profitability in the latest period.
Return on Total Capital experienced a consistent upward trend from 28.27% in June 2021 to a peak of 38.28% in June 2023. After this peak, it declines to 32.41% in June 2024 and substantially drops to 8.92% in June 2025. This trend highlights a deterioration in the firm's efficiency in generating returns from its total capital base, particularly in the most recent year.
Finally, the Return on Equity (ROE) remains relatively stable in the earlier years, with a marginal increase from 19.71% in June 2021 to 19.72% in June 2022, before rising sharply to 26.03% in June 2023. Nevertheless, subsequent declines are observed, with ROE decreasing to 18.81% in June 2024 and further falling to 4.36% in June 2025. The sharp decline in the latest year suggests considerable erosion in shareholders’ return, likely reflecting deteriorating net profitability or increased equity financing.
Overall, the analysis reveals that Amcor PLC experienced periods of profitability improvement up to 2023, but recent data indicates a significant downturn in profitability metrics, especially in the year ending June 2025. This decline may be attributable to increased costs, reduced revenues, or strategic shifts impacting overall financial performance.