November 21, 2024 (press release) –
The net sales of Berry Global, a leading global provider of innovative packaging solutions, has increased 3 per cent to $3.2 billion in the fourth quarter of fiscal 2024, driven by higher selling prices and organic volume growth of 1 per cent, partially offset by the impact of completed divestitures. All three remaining segments, excluding HHNF, delivered positive volume growth.
In the consumer packaging – international segment, net sales were in line with the prior year quarter at $999 million. Higher selling prices and 1 per cent organic volume growth, driven by improvement in our industrial markets, was offset by the impact of completed divestitures.
Net sales rose 7 per cent to $840 million primarily driven by 3 per cent organic volume growth and higher selling prices in consumer packaging – North America. The volume growth was broad based and led by our food, beverage, personal care, home care and industrial markets.
The company witnessed successful completion of the spin of Berry’s Health, Hygiene and Specialties Global Nonwovens and Films Business (‘HHNF’) and merger with Glatfelter Corporation in early November. New Berry has emerged as a global leader of consumer-focused packaging solutions with enhanced stability of earnings, free cash flow and growth.
“With the successful completion of the HHNF transaction, Berry is now a leading pure-play supplier of sustainable global packaging solutions. This intentional emphasis on fast-moving consumer goods will result in even more predictable earnings growth and cash generation, providing stability and resilience to our business as we continue to optimise our portfolio,” Kevin Kwilinski, Berry’s CEO, said.
The company’s operating income decreased by 11 per cent compared to the prior year quarter, totaling $269 million. The decrease was attributable to higher restructuring costs, higher depreciation and amortisation expense along with negative price-cost spread due to favourable timing lag in the prior year and performance-based compensation partially offset by the cost reduction initiatives.
“As a result of our team’s outstanding performance we ended fiscal 2024 on a strong note, achieving 2 per cent organic volume growth, excluding HHNF, in our underlying businesses and over 6 per cent earnings per share growth in the second half. We also reached our leverage goal of 3.5x, the lowest in the company’s history. Our lean transformation and customer excellence initiatives contributed to positive volumes again this quarter, as we continue to navigate a challenging consumer environment,” explained Kwilinski.
“Looking ahead to fiscal 2025, we anticipate continued low-single digit volume growth as demonstrated in the second half and the same strong adjusted free cash flow we have consistently delivered. We are confident in the strength and resilience of our portfolio, as reflected by the Board’s decision to raise our dividend by nearly 13 per cent following last year’s 10 per cent increase. As we move forward we intend to deliver enhanced value to our shareholders by continuing to focus on three key objectives: accelerating organic growth, increasing margins from improved operations, and deleveraging,” Kwilinski concluded.
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