Second Quarter Highlights
*GAAP: Net sales of $3.1 billion; Operating income of $208 million; Earnings per share of $0.98
*Non-GAAP: Operating EBITDA of $522 million; Adjusted earnings per share of $1.95
*Second quarter volume and earning results in-line with expectations; Strong April volumes provides confidence for low-single digit volume growth outlook in 2H
*Increased cost savings program target by 18% or an additional $25 million
*Continued progress in portfolio optimization with two divestitures closed; proceeds could exceed $2 billion in cash from strategic divestitures over the next year ($1 billion from previously announced merger and $1 billion from future portfolio optimization opportunities)
Kevin Kwilinski, Berry’s CEO said, “Berry once again produced solid financial results, consistent with our expectations. Our teams executed well, offsetting an extended period of sluggish macroeconomic demand along with persistent inflation in our primary raw material to start fiscal 2024. We undertook additional structural enhancements across our businesses and increased our original cost savings target of $140 million to $165 million. We continue to expect a $55 million contribution from the program in fiscal 2024 with the additional $25 million to be realized in fiscal 2025. Moving forward, we remain steadfast in our commitment to prudent management and strategic advancement.
During the quarter, operating EBITDA margins demonstrated sequential improvement compared to the prior quarter across all four business segments. Our year-to-date results reinforce our trajectory toward achieving our fiscal 2024 guidance—a reaffirmation we made today. We maintain confidence in the underlying strength of our businesses. Reinforced by strong April volumes, we continue to expect low-single digit volume growth in the second half of this fiscal year. As market volumes continue to recover, we anticipate incremental earnings benefits from more efficient asset utilization. I am excited by the tremendous growth and operational excellence opportunities ahead. We’re focusing on three key efforts: optimizing our portfolio to accelerate growth and deleveraging, implementing our lean transformation, and driving growth by enhancing our commercial excellence.
Our firm dedication lies in delivering long-term value to our shareholders. In 2024, we will continue our focus on driving shareholder value and prioritizing debt repayment. Additionally, we remain committed to returning capital to shareholders through further share repurchases and dividend payments.”
details at: https://ir.berryglobal.com/news-releases/news-release-details/berry-announces-second-quarter-2024-results