Berry Global Group, Inc. Reports Third Quarter 2021 Results

Net sales of $3.7B, a 26% increase; including 5% organic volume growth
Operating income of $343M; Operating EBITDA of $565M
Net income per share (EPS) of $1.40; Adjusted EPS up 1% to $1.53
Increasing operating EBITDA guidance for fiscal 2021 to $2.26B
Reaffirming fiscal 2021 organic volume growth of +5%

Berry Global Group, Inc. (NYSE:BERY), a leading supplier of sustainable packaging solutions for consumer goods and industrial products, today reported its third fiscal quarter 2021 results, referred to in the following as the June 2021 quarter.

Berry’s Chairman and CEO Tom Salmon said, “The strong performance in this third fiscal quarter gives us confidence to raise our fiscal year 2021 outlook for operating EBITDA to $2.26 billion. I am proud to say, that as a result of our strong and stable earnings and cash flow, we’ve been able to reduce our leverage from 4.3 times at the beginning of the fiscal year, to now 3.9 times net debt to adjusted EBITDA. We anticipate operating our Company while maintaining our leverage in a range of 3.0 to 3.9 times on a go-forward basis. We believe, in the near-term, that continued execution of growing organic volumes and strengthening our balance sheet will deliver significant shareholder value.

“Again, we have delivered on our strategic goals of driving organic growth and improving our balance sheet, on top of a very strong prior year quarter. We continue to invest in each of our businesses to build and maintain our world-class, low-cost, manufacturing base, with an emphasis on key growth markets and regions and continue to see incremental opportunity to invest organically in support of our unwavering commitment to global growth. The continued positive momentum from our investments in areas such as health and wellness, e-commerce, and food safety along with the focus on growing our emerging market exposure and driving more sustainable packaging, provide us the path to realize long-term consistent volume and earnings growth.”

Consolidated Overview
The net sales growth is primarily attributed to increased selling prices of $533 million due to the pass through of inflation, organic volume growth of 5%, and a $147 million favorable impact from foreign currency changes. These increases were partially offset by prior quarter divestiture sales of $62 million. The organic volume growth was primarily due to organic growth investments and continued recovery of certain markets that had previously been facing COVID-19 headwinds.

The operating income decrease is primarily attributed to a $42 million unfavorable impact from price cost spread, and a $12 million increase in selling, general, and administrative expense, partially offset by a $24 million increase from the organic volume growth, and a $23 million favorable impact from foreign currency.

Consumer Packaging – International
The net sales growth in the Consumer Packaging International segment is primarily attributed to increased selling prices of $69 million due to the pass through of inflation, organic volume growth of 5%, and an $87 million favorable impact from foreign currency changes. The organic volume growth was primarily due to organic growth investments and continued recovery of certain markets that had previously been facing COVID-19 headwinds.

The operating income decrease is primarily attributed to a $24 million unfavorable impact from price cost spread and an increase in depreciation and amortization, partially offset by a $17 million favorable impact from foreign currency change, a $10 million decrease in business integration activities, and organic volume growth.

Consumer Packaging – North America
The net sales growth in the Consumer Packaging North America segment is primarily attributed to increased selling prices of $164 million due to the pass through of inflation and organic volume growth of 6%. The organic volume growth was primarily due to continued recovery of certain markets that had previously been facing COVID-19 headwinds.

The operating income decrease is primarily attributed to a $12 million negative impact from price cost spread, partially offset by the organic volume growth.
further detail at: https://ir.berryglobal.com/news-releases/news-release-details/berry-global-group-inc-reports-third-quarter-2021-results

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