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Here's Why Investors Should Consider Retaining Berry Global Stock Now
BRYBerry (bry)(BRY) ZACKS·2025-02-28 18:10

Group 1: Company Performance - Berry Global Group, Inc. (BERY) has experienced growth across all segments, with the Consumer Packaging North America segment achieving a 10% year-over-year revenue increase in the first quarter of fiscal 2025 [1] - The Consumer Packaging International segment saw a 1% organic volume increase, supported by growth in emerging markets and market share gains [1] - The Flexibles segment's revenues rose by 1.8%, attributed to the recovery in European industrial markets [1] Group 2: Investments and Expansion - The company is investing in advanced equipment technologies and design for circularity, which are expected to enhance long-term competitiveness [2] - In April 2023, Berry Global completed a second manufacturing facility and Global Healthcare Center in Sira, Bangalore, aimed at increasing the supply of healthcare solutions in India and South Asia [3] Group 3: Financial Management - Berry Global utilizes cash flow for acquisitions, dividends, and share repurchases, having paid out 36millionindividendsinthefirstthreemonthsoffiscal2025[4]ThecompanyacquiredCMGPlasticsinOctober2024,enhancingitscapabilitieswithintheConsumerPackagingNorthAmericasegment[4]BerryGlobalincreaseditsdividendby12.936 million in dividends in the first three months of fiscal 2025 [4] - The company acquired CMG Plastics in October 2024, enhancing its capabilities within the Consumer Packaging North America segment [4] - Berry Global increased its dividend by 12.9% to 31 cents per share, translating to an annual dividend of 1.24 [4] Group 4: Cost and Debt Concerns - The company is facing rising operating costs, with a 1.4% year-over-year increase in cost of sales and an 8.3% increase in selling and administrative expenses in the first quarter of fiscal 2025 [6] - Berry Global's high debt level remains a concern, with current and long-term debt at $7.4 billion at the end of the fiscal first quarter [7]