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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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  "sourceTypeLabel": "Short seller",
  "presentationDate": "2020-03-10 00:00:00",
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  "notes": "Uses a timeline of quotes to contrast with a quantitative table showing LTM R&D spend.",
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      "text": "Based on our analysis, we observe that R&D spend is down materially from $115m to $83m (-28%).",
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      "text": "Contrasting management quotes with financial data",
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      "text": "Timeline of management quotes from 2018-2020",
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      "text": "R&D Expense: $73.0",
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      "text": "At deal announcement, Amcor was adamant that cost synergies would not entail R&D reductions, and it touted its $115m combined R&D spend as part of its “enhanced financial profile”. Yet, now the CEO is saying that its R&D infrastructure is “a little bit uneven”. Based on our analysis, we observe that R&D spend is down materially from $115m to $83m (-28%). Amcor just pulled forward its synergy expectation in 2020 by $15m, but can this be trusted in light of our findings?",
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      "kind": "quote",
      "text": "Firstly, we do not intend to pursue synergies through a reduction in sales and marketing or R&D costs. — Amcor Deal Call Aug 6, 2018; There's no fundamental change in our level of R&D spending. It's on the contrary; if anything, we've probably spent a bit more. — Amcor FY Earnings Call CEO Sept 6, 2018; Firstly, the R&D infrastructure that will really help us turbocharge the product development efforts is a little bit uneven. — Amcor FY Earnings Call CEO Nov 19, 2019",
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      "text": "Source: Amcor and Bemis SEC Filings, Spruce Point Analysis",
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      "text": "Spruce Point Estimated LTM R&D Spend table",
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      "kind": "title",
      "text": "R&D Also Appears Misguided",
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