Amcor PLC (AMCR)
Profitability ratios
Return on sales
| Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 18.88% | 20.00% | 20.16% | 20.11% | 19.88% | 19.45% | 18.96% | 18.73% | 18.54% | 18.73% | 19.07% | 19.13% | 19.39% | 19.67% | 20.03% | 20.69% | 21.24% | 21.57% | 21.44% | 21.28% |
| Operating profit margin | 6.94% | 10.06% | 9.96% | 9.30% | 8.93% | 8.30% | 7.97% | 8.50% | 8.83% | 8.20% | 8.76% | 8.66% | 8.52% | 9.60% | 9.98% | 10.17% | 10.27% | 10.09% | 9.32% | 9.09% |
| Pretax margin | 4.33% | 7.54% | 7.45% | 7.00% | 6.65% | 6.10% | 5.87% | 7.99% | 8.51% | 8.14% | 8.98% | 7.69% | 7.67% | 8.74% | 9.05% | 9.23% | 9.28% | 8.77% | 7.98% | 7.64% |
| Net profit margin | 3.40% | 5.99% | 5.89% | 5.68% | 5.35% | 4.74% | 4.58% | 6.71% | 7.13% | 6.54% | 7.14% | 5.63% | 5.53% | 6.75% | 6.98% | 7.15% | 7.30% | 6.88% | 6.23% | 5.99% |
The profitability ratios of Amcor PLC exhibit notable trends over the period analyzed. The gross profit margin showed a gradual decline from approximately 21.28% as of September 30, 2020, to around 18.54% by June 30, 2023. Nonetheless, from the third quarter of 2024 onwards, there was a positive reversal, with gross margins increasing to approximately 20.11% by September 30, 2024, and reaching nearly 20.16% at the end of 2024, indicating modest improvements in cost management or pricing strategies.
The operating profit margin followed a similar trajectory, starting at 9.09% in September 2020, peaking temporarily at 10.27% in June 2021, before declining sharply to a low of 6.94% in June 2025. This downward trend reflects decreasing operating efficiency or competitive pressures impacting profitability, especially evident in the sharp decline in the third quarter of 2025.
Pre-tax margins exhibited a comparable pattern, initially rising from 7.64% in September 2020 to over 9% in mid-2021, but thereafter generally declined, with a notable low of 4.33% in June 2025. The fall in pre-tax margins underscores increasing challenges in sustaining pre-tax profitability levels.
Net profit margins displayed some variation, remaining relatively stable in the initial years, with a high of 7.30% in June 2021, before declining notably to approximately 3.40% by June 2025. This significant reduction in net margins over time indicates increasing costs, tax burdens, or other factors impacting bottom-line profitability.
Overall, Amcor PLC’s profitability ratios reveal a pattern of initial stability or slight growth in the early part of the period, followed by a marked decline over recent years, culminating in a notable deterioration by mid-2025. The recent uptick in gross profit margin suggests some recovery or strategic adjustments at the gross level, but the persistent downward trend in operating, pre-tax, and net margins indicates ongoing challenges in sustaining overall profitability.
Return on investment
| Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 2.81% | 7.50% | 8.34% | 7.45% | 7.37% | 6.87% | 6.69% | 7.35% | 7.63% | 7.09% | 7.51% | 7.43% | 7.11% | 7.52% | 7.91% | 7.87% | 7.69% | 7.63% | 6.96% | 6.86% |
| Return on assets (ROA) | 1.38% | 4.47% | 4.94% | 4.55% | 4.42% | 3.92% | 3.84% | 5.80% | 6.16% | 5.65% | 6.12% | 4.83% | 4.62% | 5.29% | 5.54% | 5.53% | 5.46% | 5.20% | 4.65% | 4.52% |
| Return on total capital | 9.06% | 35.53% | 36.08% | 33.12% | 32.34% | 29.67% | 29.01% | 37.69% | 38.00% | 34.02% | 35.03% | 32.22% | 30.55% | 30.71% | 30.43% | 28.88% | 27.69% | 27.00% | 24.75% | 24.64% |
| Return on equity (ROE) | 4.36% | 20.96% | 21.09% | 19.62% | 18.81% | 16.56% | 16.22% | 24.83% | 26.03% | 23.00% | 24.56% | 21.00% | 19.72% | 21.05% | 21.27% | 20.28% | 19.71% | 18.57% | 16.22% | 15.87% |
The profitability ratios of Amcor PLC over the reported period exhibit a generally positive trend, with notable fluctuations and some signs of recent decline.
Operating Return on Assets (Operating ROA) demonstrates a consistent upward trajectory from 6.86% at the end of September 2020 to a peak of 8.34% at the end of December 2024. The early period shows incremental improvements, indicating enhanced operational efficiency in utilizing assets to generate operating income. After reaching this peak, a slight decline appears towards March 2025, falling to 7.50%, before a minor uptick to 7.37% in June 2025. The overall trend suggests that operational profitability was strengthening during the initial years, although recent data points to some softening.
Return on Assets (ROA), which accounts for net income relative to total assets, reflects a more variable pattern. During 2020 and early 2021, ROA increased from 4.52% to 5.54%, indicating improved overall profitability. Subsequently, ROA experienced some fluctuation, with peaks at 6.12% in December 2022, then declining sharply to 3.84% by December 2023. The most recent figures (March 2025) reveal a further decrease to 4.47%, with a notable drop to 1.38% in June 2025, signaling a potential weakening in net profitability relative to assets.
Return on Total Capital illustrates a steady upward trend from approximately 24.64% in September 2020 to a high of 36.08% in December 2024. This ratio reflects the company's ability to generate returns from both debt and equity financing, indicating effective utilization of total capital during this period. Following this peak, the ratio diminishes to 29.01% in December 2023, then rebounds slightly, ending at 9.06% in June 2025. The recent substantial decline suggests increased risk or reduced profitability from the total capital employed.
Return on Equity (ROE) has been somewhat volatile, starting at 15.87% in September 2020, rising to over 21% at the end of 2022, and reaching a peak of 26.03% in June 2023. This indicates that the company was effectively generating profits for shareholders during this period. However, at the year's close in December 2023, ROE declines sharply to 16.22%, and further down to 4.36% by June 2025, signaling a significant reduction in the returns to shareholders.
In summary, Amcor PLC's profitability ratios generally showed improvement from 2020 through 2022, peaking around late 2022 and mid-2023. However, recent data indicates a decline across multiple ratios, notably in ROE and ROA, which points to reduced profitability and possible challenges in maintaining earlier levels of operational and net returns. This pattern warrants attention to underlying factors affecting profitability, such as market conditions, cost structures, or operational efficiencies.