Core Viewpoint - Berry Global reported strong first-quarter fiscal 2025 earnings, exceeding estimates, with adjusted earnings of $1.09 per share and net sales of $2.39 billion, reflecting a year-over-year increase in both metrics [2][11]. Financial Performance - Adjusted earnings per share increased by 5% year over year, surpassing the Zacks Consensus Estimate of $1 [2]. - Net sales reached $2.39 billion, exceeding the consensus estimate of $2.34 billion, with a year-over-year increase of 2.2% driven by higher selling prices and organic volume growth of 2% [2]. - Operating EBITDA rose by 3.8% year over year to $378 million, while operating income decreased by 7.9% to $152 million [7]. Segment Analysis - Consumer Packaging - International net sales were $885 million, down 3.4% year over year, with operating income decreasing by 3.4% to $28 million [4]. - Consumer Packaging - North America reported net sales of $769 million, up 10% year over year, with operating income slightly decreasing by 1.7% to $59 million [5]. - The Flexibles segment generated net sales of $731 million, a 1.8% year-over-year increase, with operating income down 14.5% to $65 million [6]. Cost and Cash Flow - Cost of goods sold increased by 1.4% to $2.9 billion, while selling, general, and administrative expenses rose by 8.3% year over year to $223 million [7]. - The company reported a free cash outflow of $488 million in the first three months of fiscal 2025, compared to $336 million in the prior-year period [9]. Balance Sheet - At the end of the first quarter, cash and cash equivalents stood at $1.2 million, down from $1.1 billion at the end of fiscal 2024, while total debt decreased to $8.1 billion from $8.3 billion [8]. Fiscal Guidance - Berry Global reaffirmed its fiscal 2025 guidance, expecting adjusted earnings between $6.10 and $6.60 per share and cash flow from operations in the range of $1.125 to $1.225 billion [11]. Market Sentiment - Recent estimates have shown a downward trend, with the consensus estimate shifting down by 8.4% [12]. - Berry Global holds a Zacks Rank 3 (Hold), indicating expectations for an in-line return in the coming months [14].

Core Insights - Berry Global's international revenue performance is critical for assessing its financial resilience and growth prospects [1][2] - The company's total revenue for the last quarter was $2.39 billion, a decline of 16.4% year-over-year [4] International Revenue Breakdown - The "Rest of world" segment contributed $129 million, accounting for 5.41% of total revenue, which was a significant decline of 42.31% compared to expectations of $223.59 million [5] - Europe generated $840 million, representing 35.22% of total revenue, slightly exceeding the projected $835.32 million by 0.56% [6] Future Revenue Projections - Analysts project Berry Global's revenues for the ongoing fiscal quarter to be $2.52 billion, an 18% decline from the previous year, with expected contributions of $236.07 million from the "Rest of world" and $891.37 million from Europe [7] - For the full year, total revenue is anticipated to be $10.05 billion, also an 18% decrease, with contributions from "Rest of world" and Europe projected at $943.91 million and $3.52 billion, respectively [8] Market Context - The reliance on international markets presents both opportunities and challenges for Berry Global, making it essential to monitor international revenue trends for future projections [9] - Analysts are closely observing these trends amid increasing global interconnections and geopolitical tensions, which significantly influence earnings predictions [10]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended December 28, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF SECURITIES EXCHANGE ACT OF 1934 For the transition period from __________ to __________ Commission File Number 001-35672 BERRY GLOBAL GROUP, INC. A Delaware corporation 101 Oakley Street, Evansville, Indiana, 47710 (812) 424-2904 IRS ...

Berry Global (BERY) reported $2.39 billion in revenue for the quarter ended December 2024, representing a year-over-year decline of 16.4%. EPS of $1.09 for the same period compares to $1.22 a year ago.The reported revenue represents a surprise of +1.91% over the Zacks Consensus Estimate of $2.34 billion. With the consensus EPS estimate being $1.00, the EPS surprise was +9.00%.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determin ...

Financial Performance - Berry Global reported quarterly earnings of $1.09 per share, exceeding the Zacks Consensus Estimate of $1 per share, but down from $1.22 per share a year ago, representing an earnings surprise of 9% [1] - The company posted revenues of $2.39 billion for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 1.91%, but down from $2.85 billion year-over-year [2] Stock Performance - Berry Global shares have increased approximately 3.3% since the beginning of the year, outperforming the S&P 500's gain of 1.9% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $1.65 on revenues of $2.52 billion, and for the current fiscal year, it is $6.31 on revenues of $10.05 billion [7] - The estimate revisions trend for Berry Global is currently unfavorable, resulting in a Zacks Rank 5 (Strong Sell), indicating expected underperformance in the near future [6] Industry Context - The Containers - Paper and Packaging industry, to which Berry Global belongs, is currently ranked in the bottom 39% of over 250 Zacks industries, suggesting potential challenges ahead [8]

Core Insights - The global FIBC (Flexible Intermediate Bulk Container) market is projected to grow from USD 8.77 billion in 2025 to USD 12.86 billion by 2033, with a CAGR of 4.9% during the forecast period [14] - The demand for FIBCs is driven by the expansion of the food and pharmaceutical industries, as well as the need for lightweight bulk packaging solutions [1][2] Market Dynamics - The increase in international trade, particularly from emerging economies, is expected to drive the global FIBC market due to higher packaging requirements [2] - The rise of e-commerce retailing is creating opportunities for the FIBC market, with e-commerce expected to account for over 12% of total retail in Western Europe and over 19% in the United States by 2022 [3] - E-commerce companies are demanding 50% more FIBC packaging than traditional retail channels, driven by the need for product security and cost-effective shipping [4] Regional Analysis - Asia Pacific holds the largest market share and is estimated to grow at a CAGR of 5.9% during the forecast period, fueled by investments in e-commerce and changing consumer preferences towards reusable packaging [6] - Europe is the second-largest region, projected to reach USD 1,700 million by 2030 at a CAGR of 4.8%, with government efforts to attract foreign direct investment enhancing the FIBC market [9] - North America is the third-largest region, with e-commerce penetration expected to exceed 87% by 2024, significantly boosting the demand for FIBCs [10] Competitive Landscape - Key players in the FIBC market include Global-Pak, Bag Corp, Isbir Sentetik, Greif, and Berry Global Group Inc. [14] - Recent developments include Global-Pak's recycling program in collaboration with PureCycle Technologies to recycle bulk bags [13] Market Segmentation - The FIBC market is segmented by product type (Type A, B, C, D) and end-use industries, with the food segment dominating and expected to grow at a CAGR of 5.9% [14][16]

Core Insights - Berry Global's international operations are crucial for assessing its financial strength and growth potential in the current interconnected global economy [2][3] - The company's total revenue for the quarter ending September 2024 was $3.17 billion, reflecting a year-over-year increase of 2.6% [4] International Revenue Breakdown - Revenue from the "Rest of World" segment was $301 million, accounting for 9.50% of total revenue, which was a surprise increase of 2.39% compared to the projected $293.98 million [5] - European revenue totaled $1.08 billion, representing 34.15% of total revenue, but was a decline of 1.6% from the expected $1.1 billion [6] Future Revenue Projections - Analysts project total revenue for the current fiscal quarter to be $2.37 billion, indicating a decline of 16.9% from the prior-year quarter, with expected contributions of 12.3% from the "Rest of World" and 46.9% from Europe [7] - For the entire year, total revenue is forecasted at $10.15 billion, a reduction of 17.2% from the previous year, with the "Rest of World" contributing 11.5% ($1.16 billion) and Europe 43.4% ($4.4 billion) [8] Market Dependency and Earnings Impact - Berry Global's reliance on global markets for revenue presents both opportunities and risks, making the monitoring of international revenue trends essential for predicting future performance [9] - Analysts emphasize the importance of shifting earnings prospects, as they significantly influence stock prices in the short term [11]

Investment Strategy - The primary objective is to beat the market, specifically aiming for stocks that can outperform the S&P's historical return of 7-8% annually [1] - The investment approach is grounded in GARP (Growth at a Reasonable Price) with a strong emphasis on fundamental analysis [1] - The focus is on consumer discretionary stocks, as they fall within the analyst's circle of competence, with occasional coverage of tech stocks if the business is understood or the analyst is a paying customer [1] Research Process - The analyst engages in extensive research, including analyzing financial statements, listening to earnings calls, and reviewing Investor Relations websites to develop investment theses [1] Disclosure - The analyst has no stock, option, or derivative positions in any mentioned companies and no plans to initiate such positions within the next 72 hours [2] - The article reflects the analyst's personal opinions and is not influenced by compensation or business relationships with any mentioned companies [2]

Financial Performance - Net sales for the fiscal year ended September 28, 2024, were $12,258 million, a decrease of 3.2% from $12,664 million in the previous fiscal year [152]. - Operating income decreased to $937 million, down 13.1% from $1,079 million year-over-year [152]. - Net income for the period was $516 million, a decline of 15.3% compared to $609 million in the prior year [152]. - Basic net income per share was $4.48, down from $5.07, reflecting a decrease of 11.6% [152]. - Consolidated net income for fiscal 2024 was $516 million, down from $609 million in 2023 and $766 million in 2022 [262]. - Diluted EPS for fiscal 2024 was $4.38, compared to $4.95 in 2023 and $5.77 in 2022 [262]. - Cash flows from operating activities were $1,405 million, a decrease from $1,615 million in the previous year [160]. - Total stockholders' equity increased to $3,608 million from $3,216 million, reflecting a growth of 12.2% [158]. Sales Contribution by Segment - In fiscal 2024, Consumer Packaging International accounted for 32% of consolidated net sales [16]. - Consumer Packaging North America contributed 24% to consolidated net sales in fiscal 2024 [17]. - The Flexibles segment represented 23% of consolidated net sales in fiscal 2024 [18]. - Health, Hygiene & Specialties accounted for 21% of consolidated net sales in fiscal 2024 [19]. - Packaging accounted for 79% of net sales in fiscal 2024, up from 76% in fiscal 2023 [260]. - Net sales from the United States and Canada in fiscal 2024 were $6,781 million, compared to $6,893 million in fiscal 2023 [258]. Debt and Financial Obligations - As of September 28, 2024, the company had $1.5 billion in term loans and a $1.0 billion revolving credit facility with no borrowings outstanding [124]. - Total long-term debt amounts to $8,315 million, with a current portion of $810 million, resulting in long-term debt, less current portion, of $7,505 million [201]. - Future maturities of long-term debt total $8,346 million, with significant amounts due in 2026 ($2,593 million) and 2029 ($1,489 million) [210]. - The Company had unused borrowing capacity of $802 million under its $1.0 billion asset-based revolving line of credit as of the fiscal year-end [204]. - The Company extended the maturity date of $1,550 million of its outstanding term loans to July 2029 and issued $800 million of 5.65% First Priority Senior Secured Notes due 2034 [203]. Assets and Liabilities - Total assets increased slightly to $16,613 million from $16,587 million year-over-year [158]. - Current liabilities rose significantly to $3,672 million, up from $2,713 million, indicating a 35.5% increase [158]. - The balance of inventories as of fiscal 2024 was $1,631 million, compared to $1,557 million in fiscal 2023 [179]. - Property, plant, and equipment net value was $4,575 million in fiscal 2024, slightly down from $4,576 million in fiscal 2023 [180]. - Goodwill increased to $5,090 million in fiscal 2024 from $4,981 million in fiscal 2023, reflecting acquisitions and foreign currency adjustments [182]. Taxation and Deferred Tax Assets - The total current income tax expense for fiscal 2024 was $191 million, a decrease from $250 million in 2023 and $216 million in 2022 [225]. - The valuation allowance against deferred tax assets was $133 million in fiscal 2024, up from $114 million in 2023 [229]. - Total deferred tax assets increased to $888 million in fiscal 2024 from $740 million in 2023 [228]. - The ending unrecognized tax benefits decreased to $99 million in fiscal 2024 from $107 million in 2023 [231]. Employee and Pension Information - The Company employed approximately 42,000 employees at the end of fiscal 2024, with about 19% covered by collective bargaining agreements [221]. - The majority of the underfunded status of pension plans in Mainland Europe, totaling $68 million, relates to non-contributory pension plans in Germany [235]. - At the end of fiscal 2024, the Company reported $911 million in total benefit obligations, slightly up from $854 million at the end of fiscal 2023 [238]. - The weighted-average discount rate for benefit obligations in North America decreased from 5.6% in 2023 to 4.7% in 2024 [240]. Business Consolidation and Strategic Initiatives - The Company expects total business consolidation cash and non-cash expenses to be approximately $250 million, aimed at countering general economic softness [245]. - The Company initiated business consolidation cost savings initiatives across all segments, with full implementation expected by the end of fiscal 2025 [245]. - Cumulative costs attributed to business consolidation programs since 2022 total $184 million [248]. Mergers and Acquisitions - The company plans to spin off and merge its Health, Hygiene & Specialties Global Nonwovens and Films business with Glatfelter Corporation [167]. - The company entered into a definitive agreement to sell its Specialty Tapes business for a headline purchase price of $540 million, with annual revenues of $340 million in fiscal 2024 [265]. - A merger agreement was announced with Amcor plc, where each share of the company's common stock will be converted into the right to receive 7.25 Amcor ordinary shares [266]. - The merger completion is subject to conditions including stockholder adoption and regulatory approvals [267]. Shareholder Returns - The Company’s Board of Directors authorized a quarterly cash dividend of $0.31 per share, payable on December 16, 2024 [271]. - In fiscal 2024, the company repurchased approximately 2.0 million shares for $120 million, at an average price of $59.39 [249]. - As of fiscal 2024, authorized repurchases of $321 million remain available to the company [250].

Berry Global Group, Inc. (NYSE:BERY) Q4 2024 Earnings Conference Call November 19, 2024 8:00 AM ET Company Participants Tracey Whitehead - Head of IR, Amcor plc Peter Konieczny - CEO, Amcor plc Michael Casamento - EVP of Finance and CFO, Amcor plc Kevin Kwilinski - CEO Mark Miles - CFO Conference Call Participants Ghansham Panjabi - Robert W. Baird George Staphos - BofA Securities Daniel Kang - CLSA Limited Joshua Spector - UBS Investment Bank Michael Roxland - Truist Securities, Inc. Arun Viswanathan - RBC ...