Berry (US:BERY)2024-11-26 21:15Financial 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].