Amcor’s interim CEO Peter Konieczny has been appointed to the position permanently, taking responsibility for leading the global US$13.6bn business and its 41,000 staff.
Konieczny has been in leadership roles with the company since 2010, the last four years of which he has been chief commercial officer, leading global category and product management, sustainability, R&D and procurement, while maintaining responsibility for the Amcor Flexibles Latin America business.
He succeeds Ron Delia, who stepped down in April after nine years in the role, leaving for health reasons. Amcor did launch a global recruitment drive to find a successor, but ultimately decided its own man Konieczny was its best option.
Amcor chairman, Graeme Liebelt, said, “Peter has demonstrated exceptional leadership in every role he has held during his career at Amcor, including as interim CEO, where he has led the company through a period of strengthening financial performance and set the business up for further progress. The board and I are confident he is the right person to lead Amcor, and we look forward to working with him to build on the strong foundation the company has established over many years.”
Konieczny said, “I am honored and grateful for the opportunity to lead Amcor as Chief Executive Officer. Amcor is an outstanding company with highly talented people, a strong sense of purpose, a proven culture of execution and most importantly, significant growth potential."
“The business finished fiscal 2024 well with strong earnings growth, giving us confidence that momentum in the underlying business will continue to build in fiscal 2025 and beyond. Together with our continued commitment to safety, customer success and disciplined capital allocation, I believe Amcor is very well positioned to deliver industry leading value for our customers, our shareholders and the environment.”
Konieczny will receive a base salary of 1.6 million Swiss francs ($2.7m) for his troubles, and will participate in the management incentive plan, which will see a further 120 per cent of that salary added if targets are met. In addition, he will receive a further 50 per cent of whatever is awarded under the management incentive plan in the form of time-restricted long-term shares. On top of that he will continue to participate in the long-term incentive plan, which will add another 250 per cent of the base salary to his remuneration.
Amcor is the world’s biggest consumer packaging business, operating from 212 locations in 40 countries. It was founded in Australia, and has grown to become the biggest player in its field, with the $10bn acquisition of US-based Bemis five years ago cementing its position. Amcor’s stock is now traded on Wall Street.
Amcor saw sales revenue drop by 7 per cent in the year to June, but growth returned in the final quarter of the financial year, which the company expects to continue in the new year.
Net sales for the year were US$13.64bn, down from US$14.7bn the previous year, with EBITDA for the year down by three per cent, to US$1.96bn, from US$2.02bn in the 2022/23 year.
However, Konieczny said, “Volumes returned year on year in the final quarter as customer demand improved, and our team maintained their focus on cost cutting.” Amcor shed 2000 jobs during the year, and closed 10 operating plants.
Looking ahead Konieczny said, “We remain confident in our strategy for long term growth, and will continue to invest in organic growth and pursue acquisitions.”
Both Flexibles and Rigid Packaging were hit by decreased consumer demand as cost-of-living pressures hit. Flexibles revenue for the year fell to US$10.3bn from US$11.2bn last year, while Rigid Packaging sales dropped to US$3.3bn from US$3.5bn last year.
