In April 2023, the company completed the construction of a second manufacturing facility and Global Healthcare Center in Sira, Bangalore. The Sira facility extends Berry Global's research and development expertise and increases production in several major healthcare sectors. The new facility enables the company to increase supply in India and throughout South Asia, thereby capitalizing on the growing opportunities across the healthcare markets in the region. Also, Berry Global started expanding one of its s ...

Berry Global Group, Inc. (BERY) recently announced the pricing of $800 million principal amount of first priority senior secured notes due 2031 in a private placement. The sale of the notes is expected to close on or around May 28, 2024, by the company's wholly-owned subsidiary, Berry Global, Inc. The company's shares lost 0.3% yesterday, ending the trading session at $59.70. Inside the Headlines The notes will be offered only to qualified institutional buyers in accordance with Rule 144A under the Securiti ...

Core Insights - Berry Global's international operations are crucial for assessing its financial resilience and growth prospects, especially in the context of a global economic landscape [1][2][3] Revenue Performance - The total revenue for Berry Global in the quarter ended March 2024 was $3.08 billion, reflecting a decrease of 6.5% [4] - Revenue from Europe was $1.13 billion, accounting for 36.6% of total revenue, which was a slight decline of -0.32% compared to analyst expectations [5] - The "Rest of World" segment contributed $279 million, or 9.1% of total revenue, falling short of the consensus estimate by -5.5% [6] Future Projections - Analysts project total revenue for the current fiscal quarter to reach $3.22 billion, a decline of 0.2% year-over-year, with Europe expected to contribute $1.16 billion (35.9%) and the Rest of World $308.5 million (9.6%) [7] - For the full year, total annual revenue is expected to be $12.33 billion, down 2.6% from the previous year, with Europe and Rest of World projected to contribute $4.4 billion (35.7%) and $1.18 billion (9.6%) respectively [8] Strategic Considerations - Berry Global's reliance on international markets presents both opportunities and challenges, necessitating close monitoring of international revenue trends to inform future direction [9] - The increasing interdependencies and geopolitical disputes highlight the importance of tracking these trends for businesses with a global reach [10]

Berry Global Group, Inc. (BERY) reported second-quarter fiscal 2024 (ended March 2024) adjusted earnings of $1.95 per share, which beat the Zacks Consensus Estimate of $1.90. The bottom line decreased 0.5% year over year.Net sales of $3.07 billion missed the consensus estimate of $3.12 billion. The top line decreased 6.4% year over year due to a 2% dip in volumes and a 5% negative impact from lower resin costs.Berry Global’s cost of goods sold decreased 6.5% to $2.5 billion. Selling, general and administrat ...

Financial Performance - Net sales for the quarter ended March 30, 2024, decreased by $153 million, primarily due to lower selling prices and a 2% volume decline, partially offset by favorable foreign currency impacts [23]. - Operating income decreased by $15 million due to volume decline, a $57 million loss from divestitures, and a $15 million increase in depreciation and amortization expenses [24]. - Comprehensive income declined by $139 million, mainly due to a $130 million unfavorable change in currency translation and a $58 million decline in net income [27]. Cash and Investments - The Company had no outstanding balance on its $1,000 million asset-based revolving line of credit as of the end of the quarter [33]. - Net cash used in investing activities decreased by $187 million compared to the prior year-to-date, attributed to business divestitures [34]. - The Company’s cash balance was $494 million as of March 30, 2024, primarily located outside the U.S. [39]. Shareholder Returns - The Company declared and paid a cash dividend of $0.2755 per share during the first and second fiscal quarters [36]. - Approximately 1.5 million shares were repurchased for $88 million in the year-to-date fiscal 2024, with $353 million remaining for authorized share repurchases [37]. Debt and Interest - The senior secured credit facilities include $2.3 billion in term loans and a $1.0 billion revolving credit facility, with no borrowings outstanding [43]. - A 0.25% change in floating interest rates would increase annual interest expenses by approximately $1 million [43].

| --- | --- | |-------|-----------------------------------------------------------------------------------------------------------------------| | | | | | | | | | | | | | | Earnings Conference Call Supplement Thursday, May 9th, 2024 @ 10AM ET Fiscal 2024 – 2nd Quarter Earnings Presentation | Safe Harbor Statements Forward-Looking Statements Statements in this presentation that are not historical, including statements relating to the expected future performance of the Company, as well as estimates and stateme ...

Financial Data and Key Metrics - Adjusted earnings per share for Q2 2024 was $1.95, similar to the prior year, while operating EBITDA was down 5% due to softer volumes and polymer cost pass-through timing [26] - The company reaffirmed its fiscal 2024 guidance, expecting low single-digit volume growth in the second half of the year and year-end leverage of 3.5x or lower [17] - Free cash flow is expected to be in the range of $800 million to $900 million for fiscal 2024, with cash from operations of $1.35 billion to $1.45 billion and capital expenditures of $550 million [44] Business Line Performance - Consumer Packaging International revenue was down 8%, primarily due to polymer cost pass-through, with EBITDA down 4% [27] - Consumer Packaging North America revenue declined 4%, driven by softer customer demand and lower selling prices, with EBITDA down 11% [29][31] - Flexibles revenue decreased 9%, primarily due to lower resin costs and volume softness, while EBITDA remained flat [32] - Health, Hygiene, and Specialties revenue was down 6%, with EBITDA essentially flat, driven by cost reductions offset by resin pass-through timing [33] Market Performance - North America showed strong performance, particularly in food, beverage, personal care, and home care markets, while Europe saw incremental improvements [27][29] - The company observed substrate conversions to plastic from paper, foam, glass, and metal, driven by sustainability efforts and consumer experience improvements [30] Strategic Direction and Industry Competition - The company is focused on portfolio optimization, lean transformation, and commercial excellence to drive growth and operational efficiency [10][13] - Berry expanded its cost savings program by an additional $25 million, bringing the total to $165 million, with savings expected by the end of fiscal 2025 [9] - The proposed spin-off and merger of the Health, Hygiene, and Specialties segment with Glatfelter is expected to close in the second half of 2024, creating a leading specialty materials company [11] Management Commentary on Operating Environment and Future Outlook - Management expressed confidence in the second half of fiscal 2024, driven by easing inflation, improved volumes, and cost reduction efforts [17][43] - The company remains optimistic about achieving peer-leading performance, with a focus on low leverage, cost reductions, and organic growth [46] Other Key Information - Berry completed two divestitures in Q2, generating approximately $150 million in revenue, and expects to generate over $2 billion from strategic divestitures in the next year [18][35] - The company has reduced net debt by more than $3 billion since mid-2019 and returned over $1.5 billion to shareholders through share repurchases and dividends [38] Q&A Session Summary Question: Confidence in achieving strong second-half growth - Management cited easier year-over-year comparisons, strong April volumes, and improved foodservice performance as key drivers of confidence [51][53] - The company expects an $80 million EBITDA improvement in the second half of 2024 compared to 2023, driven by volume recovery and resin cost pass-through timing [54] Question: Divestiture strategy and proceeds - The additional $1 billion in expected divestiture proceeds excludes the Health, Hygiene, and Specialties segment and already divested businesses, with proceeds expected to be used for deleveraging and core business growth [56] Question: Lean transformation and commercial excellence - The company is focused on improving first-pass yield, reducing unplanned downtime, and automating SG&A processes to drive cost reductions and growth [66][68] Question: Glatfelter transaction valuation - Management believes the market is undervaluing the Glatfelter transaction, citing improving business performance and significant synergy potential [103] Question: Volume improvement drivers - The company attributed volume improvements to reduced destocking, increased promotional activity, and improved consumer consumption levels [98][109] Question: Portfolio optimization focus - Divestiture opportunities are primarily in the Flexibles and Consumer Packaging International segments, with a focus on reducing industrial exposure and increasing consumer-facing businesses [111]

Berry Global (BERY) came out with quarterly earnings of $1.95 per share, beating the Zacks Consensus Estimate of $1.90 per share. This compares to earnings of $1.96 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 2.63%. A quarter ago, it was expected that this packaging company would post earnings of $1.29 per share when it actually produced earnings of $1.22, delivering a surprise of -5.43%.Over the last four quarters, the co ...

Berry Global (BERY) is expected to deliver a year-over-year decline in earnings on lower revenues when it reports results for the quarter ended March 2024. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.The earnings report, which is expected to be released on May 9, 2024, might help the stock move higher if these key numbers are better than expecta ...

NEW YORK, April 17, 2024 /PRNewswire/ -- NewHold Enterprises, an operationally focused investment firm, is pleased to announce the sale of F&S Tool, a leading North American designer and manufacturer of precision injection molding tools, to Berry Global Group, Inc. (NYSE: BERY). F&S Tool operates a 90,000 square foot facility located in Erie, Pennsylvania, with 11 issued/pending patents and 105 employees focused on proprietary technologies to serve a large and diverse addressable market. The sale was comple ...