Berry (bry)(US:BRY) ZACKSยท2024-11-20 17:06Core Insights - Berry Global Group, Inc. reported fourth-quarter fiscal 2024 adjusted earnings of $2.27 per share, exceeding the Zacks Consensus Estimate of $2.25, although it represented a 0.9% decrease year over year [1] - The company's net sales reached $3.16 billion, surpassing the consensus estimate of $3.15 billion, marking a 3% year-over-year increase driven by higher selling prices and 1% organic volume growth [1] Segmental Discussion - The Health, Hygiene and Specialties segment will undergo a tax-free spin-off and merge with Glatfelter Corporation, while the Engineered Materials segment has been renamed to Flexibles to focus on higher value products [2] - International net sales in the Consumer Packaging segment amounted to $999 million, consistent with the previous year's figure, with operating income decreasing 14% year over year to $72 million [3] - North American Consumer Packaging net sales totaled $840 million, a 7% increase year over year, with operating income rising 32% to $124 million [4] - The Health, Hygiene & Specialties segment reported net sales of $642 million, a 2% increase year over year, but operating income fell 69.4% to $11 million [5] - The Flexibles segment generated net sales of $687 million, a 2% year-over-year increase, with operating income down 29% to $62 million [6] Costs & EBITDA - Berry Global's cost of goods sold increased by 3.1% to $2.6 billion, while selling, general and administrative expenses rose 6.1% year over year to $228 million [7] - The company reported operating EBITDA of $546 million, remaining flat year over year, and operating income decreased by 11% to $269 million [7] Balance Sheet and Cash Flow - At the end of the fourth quarter, Berry Global had cash and cash equivalents of $1.1 million, down from $1.2 billion at the end of fiscal 2023, with total debt at $8.3 billion [8] - In fiscal 2024, the company generated net cash of $1.4 billion from operating activities, down from $1.6 billion in the previous year, with capital expenditure totaling $551 million [9] - Berry Global reported an adjusted free cash flow of $854 million, a decrease from $926 million in the prior year, and repurchased 2 million shares for approximately $120 million [9] Acquisition Announcement - Berry Global has entered into an agreement to be acquired by Amcor plc for $8.43 billion in an all-stock transaction, enhancing its position in consumer and healthcare packaging markets [11] - Shareholders will receive $73.59 per share, representing a 9.75% premium over the last closing price, with the acquisition expected to close in mid-2025, subject to regulatory approvals [12] Fiscal 2025 Guidance - Berry Global anticipates adjusted earnings in the range of $6.10-$6.60 per share for fiscal 2025, with expected cash flow from operations between $1.125 billion and $1.225 billion [13]