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  "documentTitle": "Amcor plc (pro forma Amcor-Berry Global combination) (AMCR)",
  "authorId": "54_Spruce_Point_Capital",
  "authorName": "Ben Axler",
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  "presentationDate": "2020-03-10 00:00:00",
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  "notes": "Uses a red box to highlight a specific recent closure that contradicts the CEO's Feb 2020 claim.",
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      "kind": "callout",
      "text": "The CEO also claimed the European flexible volumes increased, yet Amcor did not disclose that two Flexible facilities were to be shut down in Finland by June 2020.",
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      "text": "Amcor appears to be struggling in Europe, where ~30% of its sales are located. We find evidence that its cash pools fell into a deficit from a multi-year surplus. The CEO also claimed the European flexible volumes increased, yet Amcor did not disclose that two Flexible facilities were to be shut down in Finland by June 2020. This suggests it has excess capacity in Europe. Reported European sales declined 3% YoY in the last three months of 2019. If volumes are increasing as the CEO says, then pricing must have significantly deteriorated. The Euro currency rose ~3% during the last quarter of the year, which should have helped Amcor since it reports in US dollars.",
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      "kind": "quote",
      "text": "Simple answer to your first question, yes, volumes grew overall, both in North America and in Europe, which is really pleasing because those are our 2 engines in Flexibles, right? Those are 2 big businesses, neither of which are in dynamic growth markets, as you pointed out. So if we can get a little bit of growth through volume in those businesses, it's good to see. So absolute volume grew in both North America and Europe.",
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      "text": "The business in Europe, which is, let's say, the purest general Flexibles business that we have at scale, which is a $3 billion-plus business had good sales growth last year and picked up momentum in the second half. So if anything, that business you would say is winning in the market and that's the expectation and it's been the experience as well.",
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      "kind": "quote",
      "text": "\"The business in Europe, which is, let's say, the purest general Flexibles business that we have at scale, which is a $3 billion-plus business had good sales growth last year and picked up momentum in the second half. So if anything, that business you would say is winning in the market and that's the expectation and it's been the experience as well.\" — CEO Delia, FY 2018 Call, Aug 2018; \"Simple answer to your first question, yes, volumes grew overall, both in North America and in Europe, which is really pleasing because those are our 2 engines in Flexibles, right? Those are 2 big businesses, neither of which are in dynamic growth markets, as you pointed out. So if we can get a little bit of growth through volume in those businesses, it's good to see. So absolute volume grew in both North America and Europe.\" — CEO Delia, H2 2020 Call, Feb 2020",
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      "text": "Source: Eurofound.org",
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      "kind": "table",
      "text": "Table showing historical restructuring events in Europe, highlighting a 2019 closure in Finland.",
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      "kind": "title",
      "text": "Europe Is Under Pressure",
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