Berry (US:BERY)2021-11-18 22:00Financial Data and Key Metrics Changes - For Q4 2021, revenue increased by 22%, marking a record for any September quarter, with free cash flow reaching a record $512 million [13][6][7] - Fiscal year 2021 saw an 18% increase in revenue and a 20% increase in adjusted earnings per share, both annual records [7][16] - Operating EBITDA for the fiscal year increased by 3% to a record $2.224 billion, with adjusted earnings per share rising to $5.80 [16][15] Business Line Data and Key Metrics Changes - Consumer Packaging-International division revenue improved by 12% in Q4, driven by an 11% increase in selling prices, while volumes remained flat [17] - Consumer Packaging-North America division revenue rose by 31% in Q4, with a 2% decline in volumes due to supply chain challenges [19] - Health, Hygiene, & Specialties division revenue increased by 21% in Q4, with a 3% organic volume decline [21] - Engineered Materials division revenue was up 38% in Q4, with organic volume growth of 1% [23] Market Data and Key Metrics Changes - Overall demand for products remained solid, with certain markets recovering from pandemic headwinds [13] - Emerging markets, such as India and Eastern Europe, showed stronger growth compared to developed markets [17] Company Strategy and Development Direction - The company aims to improve its balance sheet and reduce leverage, ending the year at 3.8x net debt to adjusted EBITDA [8] - Focus on capitalizing on organic growth initiatives, including innovation and sustainability projects [9] - Commitment to sustainability with a goal of 30% circular plastic use across fast-moving consumer goods packaging by 2030 [44] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to achieve consistent low single-digit growth, supported by a robust pipeline of new business [32][47] - Anticipation of improved supply chain reliability and cost recovery in fiscal 2022 [50][64] Other Important Information - The company has reduced net debt by over $1 billion in the last four quarters [16] - Significant investments in health care solutions and sustainable packaging are underway [34][36] Q&A Session Summary Question: Can you provide volume growth guidance for '22 across segments? - Management typically does not provide segment-specific volume guidance but expects all businesses to deliver low single-digit volume growth [48] Question: What are the resin assumptions for '22 and the outlook on inflation? - Current pricing for resin is assumed, with expectations for supply chain improvements throughout the fiscal year [49][51] Question: Why are there no specific targets for dividends or buybacks? - The company prioritizes organic growth investments and maintains a flexible capital allocation strategy [54][56] Question: What is the timeline for recovering supply chain constraints? - Management anticipates being price cost-neutral by the third quarter of fiscal year [63] Question: How does the company plan to achieve its circularity goals? - A combination of mechanically recycled resin, chemically recycled resin, and bioplastics will be utilized to meet the 30% goal by 2030 [65]