Amcor plc, a leading global packaging company, saw its stock soar 5.02% in Tuesday's intraday trading session following the release of its fiscal second-quarter earnings report and the announcement of a transformational merger deal with Berry Global Group.
In its Q2 results for the period ended December 31, 2024, Amcor reported adjusted earnings per share (EPS) of $0.16, in line with analysts' expectations. While net sales dipped slightly by 0.3% year-over-year to $3.24 billion, the company's adjusted EBIT (Earnings Before Interest and Taxes) rose 3% on a comparable constant currency basis, driven by higher volumes, strong cost performance, and benefits from restructuring initiatives.
Notably, Amcor announced a definitive merger agreement with Berry Global Group, a move aimed at boosting its growth strategy and focusing its portfolio on faster-growing, higher-margin categories. The combined company is expected to create a global leader in consumer packaging solutions with enhanced innovation capabilities and scale. Amcor anticipates realizing $650 million in synergies by the end of the third year after closing the transaction, which is expected to occur in mid-2025.
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