Amcor, a global leader in developing and producing responsible packaging solutions, announced today that after nine years as Chief Executive Officer (CEO), Ron Delia has informed the Board of Directors of his decision to retire from the Company and step down from the Board for health reasons, effective April 15, 2024.
The Board has appointed Peter Konieczny, Amcor's current Chief Commercial Officer and a long-standing member of the Company's Global Management Team, as Interim CEO. Mr. Delia will provide continued support in an advisory role until September 30, 2024, to facilitate the transition. The Board is conducting a thorough search process to identify a permanent successor for the CEO role, which will include internal and external candidates.
Amcor Chairman, Mr. Graeme Liebelt said: "On behalf of the Board, we thank Ron for his outstanding leadership and dedication to the Company and our people during his more than 18 years of service. Under Ron's leadership, Amcor has added billions of dollars in annual revenues, successfully completed the transformational Bemis acquisition, strengthened its global leadership positions in key markets and consistently led the industry by embedding sustainability into its operating and strategic agenda. The Company has made great progress during Ron's nine years as CEO and he has been instrumental in building a much stronger, safer, more profitable and more sustainable foundation for our future. We understand and support his decision and wish him the very best."
Mr. Delia said: "It has been a privilege to serve as Amcor CEO for the last nine years and to work alongside such a committed, talented and experienced team. Together, we have created a stronger global packaging leader and laid the foundations for an exciting future as the business has substantial potential and is building near-term momentum. I have complete confidence in the strength and capabilities of Amcor's leadership team, and Peter will do an outstanding job as Interim CEO during the transition period. I would like to thank my Amcor colleagues around the world and the Board of Directors for many years of invaluable collaboration and support."
Mr. Liebelt said: "Amcor has a talented management team with deep knowledge of the business, industry experience and strong leadership capabilities. Peter has been a key member of the Company's leadership team and a thought partner to Ron for many years. He has helped guide Amcor's strategy with his extensive industry expertise, sound judgement and leadership in both operational and functional roles. He is an exceptionally talented and respected professional who has led global businesses and, as Chief Commercial Officer, has been responsible for our sustainability and innovation agendas. The Board is confident Peter is the right person to lead Amcor during the transition."
The Company reaffirms fiscal 2024 guidance as announced in its second quarter and half year 2024 earnings release on February 6, 2024. For the twelve-month period ending June 30, 2024, the Company continues to expect:
Adjusted EPS of 67 to 71 cents per share, which includes:
- Comparable constant currency earnings made up of underlying business performance down low-single digit % to up low-single digit %, a benefit of approximately 2% from share repurchases, and a negative impact of approximately 6% related to higher estimated net interest and tax expense;
- A negative impact of approximately 3% related to the sale of the Company's Russian business on December 23, 2022; and
- A benefit of up to 2% related to currency translation, assuming current rates prevail through the balance of fiscal 2024.
- In comparable constant currency terms, the Company expects third-quarter adjusted EPS to be mid-single digit % lower compared to the third quarter of fiscal 2023, and fourth quarter adjusted EPS to be up mid-single digit % higher than the fourth quarter of fiscal 2023.
- Adjusted Free Cash Flow of approximately $850 million to $950 million, representing solid growth over fiscal 2023.
- Approximately $70 million of cash to be allocated towards share repurchases as part of the program previously announced in fiscal 2023.
Amcor's guidance contemplates a range of factors which create a degree of uncertainty and complexity when estimating future financial results.