Published on 10 May 2024 on Zacks via Yahoo Finance

Berry Global (BERY) Q2 Earnings Beat Estimates, Revenues Miss

Berry Global Group, Inc. BERY reported second-quarter fiscal 2024 (ended March 2024) adjusted earnings of $1.95 per share, which beat the Zacks Consensus Estimate of $1.90. The bottom line decreased 0.5% year over year.Net sales of $3.07 billion missed the consensus estimate of $3.12 billion. The top line decreased 6.4% year over year due to a 2% dip in volumes and a 5% negative impact from lower resin costs.Berry Global’s cost of goods sold decreased 6.5% to $2.5 billion. Selling, general and administrative expenses decreased 3.2% year over year to $213 million. The company reported an operating EBITDA of $522 million, down 4% year over year. Adjusted operating income decreased 9.7% to $308 million.

Segmental Discussion

Berry Global has announced its plan to go for a tax-free spin-off and merge the majority of its Health, Hygiene and Specialties segment (comprising the global nonwovens and films business) with Glatfelter Corporation GLT. With this announcement and its focus on driving a positive product mix within the Engineered Materials segment into higher value products, BERY renamed the unit Flexibles.Consumer Packaging - International sales amounted to $968.0 million (accounting for 31.5% of total sales), down 8.6% from the year-ago quarter’s figure. Our estimate for segmental revenues was $1 billion. The decline was due to the pass-through of lower resin prices and the impact of completed divestitures. Operating income of $3 million decreased 96% year over year.Consumer Packaging - North America’s sales totaled $751.0 million (accounting for 24.4% of total sales) in the segment, down 3% year over year due to a 3% decline in volumes. Our estimate for segmental revenues was $764.6 million. Operating income declined 17.2% year over year to $77.0 million.Revenues from the Health, Hygiene & Specialties segment amounted to $646.0 million (accounting for 21% of total sales), down 4.6% year over year due to a 2% decrease in volumes as a result of lower demand in hygiene and specialty markets. Our estimate for segmental revenues was $642.1 million. It reported operating income of $33.0 million, down 2.9% from the year-ago quarter.Revenues from the Flexibles segment amounted to $711.0 million (accounting for 23.1% of total sales), down 8.6% year over year due to a 4% decrease in volumes as a result of softer demand in North American markets. Our estimate for segmental revenues was $704.4 million. Operating income was $95 million, down 4% year over year.