Amcor plc delivered a solid QQ4 2024 quarter characterized by a meaningful improvement in operating profitability and robust free cash flow generation, even as revenue declined modestly year-over-year. Revenue came in at $3.535 billion, down 3.8% YoY but up 3.7% QoQ, reflecting resilience in underlying packaging demand despite a softer top line. Gross profit was $754 million with a gross margin of 21.33%, up 4.4% YoY and 9.1% QoQ, underscoring continued benefits from mix and cost discipline. Operating income reached $399 million, translating to an operating margin of approximately 11.3% and a YoY uplift of about 22.8% driven by improved efficiency and leverage on fixed costs. Net income was $257 million and diluted EPS was $0.18, representing YoY increases of roughly 42.8% and 50% respectively, with QoQ gains of about 37%.
Cash flow remains a strength, with net cash provided by operating activities of $949.4 million and free cash flow of about $813.5 million. Management deployed capital to support deleveraging and shareholder returns, evidenced by $81.45 million in share repurchases and a $182.7 million dividend outlay during the period, against a backdrop of total debt of $6.70 billion and net debt of $6.11 billion. The company closed the quarter with a cash balance of $588 million and liquidity supported by a current ratio of 1.165 and a quick ratio of 0.689.
While margin expansion and cash flow strength are positives, Amcor continues to operate with a high leverage profile (long-term debt of $7.091 billion and total debt to capitalization near 65%). In the near term, investors should monitor input costs (raw materials), currency dynamics, and ongoing price/mix discipline as drivers of continued profitability. The stock trades at a reasonable valuation relative to some peers, and free cash flow generation provides a pathway to deleveraging and potential capital returns over time.