Berry (US:BERY) ZACKS·2025-03-20 16:50Core Insights - Berry Global Group, Inc. (BERY) is experiencing strong growth in its Consumer Packaging North America segment, with a 10% year-over-year revenue increase in the first quarter of fiscal 2025 [1] Consumer Packaging Segments - The Consumer Packaging International segment is benefiting from growth in emerging markets and market share gains, with an organic volume increase of 1% in the same quarter [2] - The Flexibles segment's revenues rose by 1.8%, supported by a recovery in European industrial markets [2] Acquisitions and Business Expansion - The company is actively using its cash flow for acquisitions, dividends, and share repurchases. In October 2024, Berry Global acquired CMG Plastics, enhancing its container business in North America, particularly in the dairy, industrial, and medical sectors [3] - The acquisition of Pro-Western Plastics in June 2023 also contributed to the growth of its Consumer Packaging North America segment [3] Shareholder Returns - Berry Global paid $36 million in dividends in the first three months of fiscal 2025, compared to $139 million in fiscal 2024. Additionally, the company repurchased shares worth $120 million in fiscal 2024 [4] - In October 2024, the company increased its dividend by 13% to 31 cents per share, translating to an annual dividend of $1.24 [4] Financial Performance and Costs - Despite revenue growth, the company is facing rising operating costs, with a 1.4% increase in cost of sales year-over-year and an 8.3% rise in selling and administrative expenses in the first quarter of fiscal 2025 [7] - Selling and administrative expenses as a percentage of total revenues increased by 60 basis points to 9.4% [7] Debt Levels - Berry Global's long-term debt has shown a 9.7% CAGR from 2018 to 2022, with current and long-term debt remaining high at $7.4 billion at the end of the first quarter of fiscal 2025 [8]