Berry (US:BERY)2021-02-04 16:00Financial Performance - The Company reported net sales of $3,136 million for the Quarter, an increase of 11% compared to the Prior Quarter's $2,816 million, driven by organic volume growth of 7% and favorable foreign currency impacts of $50 million[64]. - Operating income for the Quarter was $304 million, representing a 53% increase from $199 million in the Prior Quarter, with an operating income percentage of 10% of net sales[64]. - The Consumer Packaging International segment achieved net sales of $988 million, a 6% increase from $930 million in the Prior Quarter, primarily due to organic volume growth of 4% and a favorable foreign currency impact of $44 million[66]. - The Health, Hygiene & Specialties segment saw net sales rise to $740 million, a 21% increase from $610 million in the Prior Quarter, attributed to organic volume growth of 15% and increased selling prices of $7 million[71]. - The Company reported a $173 million increase in Comprehensive income from the Prior Quarter, driven by an $86 million increase in currency translation and an $83 million improvement in Net income[74]. Cash Flow and Capital Expenditures - The Company projects cash flow from operations for fiscal 2021 to be between $1,625 million and $1,525 million, with capital spending estimated at $650 million[61]. - The Company had a cash balance of $847 million at the end of the Quarter, with approximately 80% located outside the U.S., and no outstanding balance on its $850 million asset-based revolving line of credit[77]. Debt and Interest Expenses - Interest expense decreased to $97 million in the Quarter, down 18% from $118 million in the Prior Quarter, primarily due to repayments on long-term borrowings[73]. - The company has $5.4 billion in term loans and a $850 million revolving credit facility with no borrowings outstanding[82]. - A 0.25% change in LIBOR would increase the company's annual interest expense by $6 million on variable rate term loans[82]. - The company has a $450 million interest rate swap at a fixed annual rate of 1.398% expiring in June 2026[83]. Foreign Currency Impact - A 10% decline in foreign currency exchange rates would have resulted in an $8 million unfavorable impact on net income for the quarterly period ended January 2, 2021[84]. - The company has outstanding long-term debt of €785 million designated as a hedge of its net investment in certain euro-denominated foreign subsidiaries[85]. - The company is party to cross-currency swaps maturing in May 2022 (€250 million), June 2024 (€1,625 million), and July 2027 (£700 million)[85]. Other Expenses - Other expense, net increased by 92% to $25 million from $13 million in the Prior Quarter, mainly due to foreign currency changes related to non-operating intercompany balances[72]. - The Company completed the sale of its U.S. Flexible Packaging Converting business for net proceeds of $140 million, which recorded $203 million in net sales during fiscal 2020[59].