For the quarter ended March 2025, Berry Global (BERY) reported revenue of $2.52 billion, down 18.1% over the same period last year. EPS came in at $1.55, compared to $1.95 in the year-ago quarter.The reported revenue represents a surprise of +2.69% over the Zacks Consensus Estimate of $2.45 billion. With the consensus EPS estimate being $1.52, the EPS surprise was +1.97%.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street ex ...

Berry Global (BERY) came out with quarterly earnings of $1.55 per share, beating the Zacks Consensus Estimate of $1.52 per share. This compares to earnings of $1.95 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 1.97%. A quarter ago, it was expected that this packaging company would post earnings of $1 per share when it actually produced earnings of $1.09, delivering a surprise of 9%.Over the last four quarters, the company h ...

Financial Performance - Net sales for the quarter ended March 29, 2025, were $2,520 million, essentially flat compared to the prior quarter's $2,519 million, with a $50 million increase due to higher selling prices and 2% organic volume growth, offset by $62 million from divestitures[80]. - Operating income for the quarter increased to $391 million, a 115% increase from $182 million in the prior quarter, primarily due to a $175 million gain from the divestiture of the Tapes business[80][83]. - Year-to-date net sales increased by 1% to $4,905 million, with a $196 million increase in operating income to $543 million, attributed to higher selling prices and improved volumes[92][95]. - For the two quarterly periods ended March 29, 2025, net sales were $2.732 billion, with a gross profit of $556 million and earnings from continuing operations of $270 million[112]. - The company reported net income of $270 million, which includes $43 million of income associated with intercompany activity with non-guarantor subsidiaries[112]. Segment Performance - The Consumer Packaging International segment reported net sales of $970 million, flat year-over-year, with a 1% organic volume growth and a 1,280% increase in operating income to $69 million[84][85]. - The Consumer Packaging North America segment saw net sales rise by 5% to $789 million, driven by 2% organic volume growth and higher selling prices, although operating income decreased by 8% to $69 million[86][87]. - The Flexibles segment experienced a 5% decline in net sales to $761 million, primarily due to a $58 million decline from the divested Tapes business, while operating income surged by 148% to $253 million[88][89]. Cash Flow and Liquidity - Free cash flow for the year-to-date was $(469) million, a decline from $(247) million in the prior year, indicating increased cash used in operating activities[108]. - As of March 29, 2025, the company's cash balance was $483 million, with plans to refinance long-term debt obligations prior to maturity[109]. - The company had no outstanding balance on its $800 million asset-based revolving line of credit as of the end of the quarter, maintaining compliance with all covenants[103]. Assets and Liabilities - Current assets decreased from $1.775 billion on September 28, 2024, to $1.343 billion as of March 29, 2025, while noncurrent assets decreased from $5.553 billion to $2.382 billion[113]. - Current liabilities decreased from $2.081 billion to $1.092 billion, while noncurrent liabilities decreased from $8.843 billion to $8.032 billion during the same period[113]. - The company has $1.0 billion in term loans and an $800 million revolving credit facility, with no borrowings outstanding under the latter[114]. Interest Rate and Currency Risk - A 0.25% change in floating interest rates would increase annual interest expense by approximately $1 million[114]. - A 10% decline in foreign currency exchange rates would have resulted in a $6 million unfavorable impact on net income for the two quarterly periods ended March 29, 2025[115]. - The applicable margin for SOFR rate borrowings under the revolving credit facility ranges from 1.25% to 1.50%, while the margin for term loans is 1.75% per annum[114]. - The SOFR rate applicable to term loans was approximately 4.34% at the end of the period[114]. - The company aims to minimize interest rate volatility risk through regular operating and financing activities and the use of derivative financial instruments when appropriate[115]. Comprehensive Income - The company reported a $207 million improvement in comprehensive income from the prior quarter, mainly due to a favorable change in currency translation[90].

Core Viewpoint - Berry Global reported strong first-quarter fiscal 2025 earnings, exceeding estimates, with adjusted earnings of $1.09 per share and net sales of $2.39 billion, reflecting a year-over-year increase in both metrics [2][11]. Financial Performance - Adjusted earnings per share increased by 5% year over year, surpassing the Zacks Consensus Estimate of $1 [2]. - Net sales reached $2.39 billion, exceeding the consensus estimate of $2.34 billion, with a year-over-year increase of 2.2% driven by higher selling prices and organic volume growth of 2% [2]. - Operating EBITDA rose by 3.8% year over year to $378 million, while operating income decreased by 7.9% to $152 million [7]. Segment Analysis - Consumer Packaging - International net sales were $885 million, down 3.4% year over year, with operating income decreasing by 3.4% to $28 million [4]. - Consumer Packaging - North America reported net sales of $769 million, up 10% year over year, with operating income slightly decreasing by 1.7% to $59 million [5]. - The Flexibles segment generated net sales of $731 million, a 1.8% year-over-year increase, with operating income down 14.5% to $65 million [6]. Cost and Cash Flow - Cost of goods sold increased by 1.4% to $2.9 billion, while selling, general, and administrative expenses rose by 8.3% year over year to $223 million [7]. - The company reported a free cash outflow of $488 million in the first three months of fiscal 2025, compared to $336 million in the prior-year period [9]. Balance Sheet - At the end of the first quarter, cash and cash equivalents stood at $1.2 million, down from $1.1 billion at the end of fiscal 2024, while total debt decreased to $8.1 billion from $8.3 billion [8]. Fiscal Guidance - Berry Global reaffirmed its fiscal 2025 guidance, expecting adjusted earnings between $6.10 and $6.60 per share and cash flow from operations in the range of $1.125 to $1.225 billion [11]. Market Sentiment - Recent estimates have shown a downward trend, with the consensus estimate shifting down by 8.4% [12]. - Berry Global holds a Zacks Rank 3 (Hold), indicating expectations for an in-line return in the coming months [14].

Core Insights - Berry Global's international revenue performance is critical for assessing its financial resilience and growth prospects [1][2] - The company's total revenue for the last quarter was $2.39 billion, a decline of 16.4% year-over-year [4] International Revenue Breakdown - The "Rest of world" segment contributed $129 million, accounting for 5.41% of total revenue, which was a significant decline of 42.31% compared to expectations of $223.59 million [5] - Europe generated $840 million, representing 35.22% of total revenue, slightly exceeding the projected $835.32 million by 0.56% [6] Future Revenue Projections - Analysts project Berry Global's revenues for the ongoing fiscal quarter to be $2.52 billion, an 18% decline from the previous year, with expected contributions of $236.07 million from the "Rest of world" and $891.37 million from Europe [7] - For the full year, total revenue is anticipated to be $10.05 billion, also an 18% decrease, with contributions from "Rest of world" and Europe projected at $943.91 million and $3.52 billion, respectively [8] Market Context - The reliance on international markets presents both opportunities and challenges for Berry Global, making it essential to monitor international revenue trends for future projections [9] - Analysts are closely observing these trends amid increasing global interconnections and geopolitical tensions, which significantly influence earnings predictions [10]

Financial Performance - Net sales for the quarter ended December 28, 2024, were $2,385 million, a 2% increase from the prior quarter's $2,333 million, driven by organic volume growth of 2% and increased selling prices of $34 million [77]. - Operating income decreased to $152 million, down 8% from $165 million in the prior quarter, primarily due to a $23 million increase in business integration costs related to the proposed merger with Amcor [79]. - Comprehensive income declined by $258 million from the prior quarter, mainly due to a $113 million favorable change in the fair value of derivative instruments and a $45 million decline in net income [87]. Cash Flow - Free cash flow for the quarter was $(506) million, a decline from $(336) million in the prior quarter, reflecting increased operating cash used in continuing operations [94]. - Projected cash flow from operations for fiscal 2025 is estimated to be between $1.125 billion and $1.225 billion, with free cash flow projected between $600 million and $700 million, assuming $525 million of capital spending [75]. - The company had a cash balance of $1,181 million at the end of the quarter, with approximately 77% located in the U.S. [95]. Segment Performance - The Consumer Packaging North America segment reported net sales of $769 million, a 10% increase from $699 million in the prior quarter, attributed to 4% organic volume growth and increased selling prices [82]. - The Flexibles segment saw net sales increase to $731 million, a 2% rise from $718 million in the prior quarter, primarily due to increased selling prices of $7 million and 1% organic volume growth [84]. Other Financial Activities - Other expenses decreased by $37 million, primarily due to foreign currency gains related to the remeasurement of euro bonds [86]. - The company declared and paid cash dividends of $36 million during the quarter [92].

Core Insights - Berry Global reported $2.39 billion in revenue for the quarter ended December 2024, reflecting a year-over-year decline of 16.4% [1] - The EPS for the same period was $1.09, down from $1.22 a year ago, but exceeded the consensus estimate of $1.00 by 9% [1] - The reported revenue surpassed the Zacks Consensus Estimate of $2.34 billion by 1.91% [1] Financial Performance Metrics - Net Sales in Consumer Packaging - International reached $885 million, exceeding the estimated $869.22 million, but down 3.5% year-over-year [4] - Net Sales in Flexibles amounted to $731 million, surpassing the estimated $679.36 million [4] - Net Sales in Consumer Packaging - North America was $769 million, exceeding the estimated $697.44 million, representing a 10% increase year-over-year [4] - Operating EBITDA for Flexibles was $114 million, above the average estimate of $103.04 million [4] - Operating EBITDA for Consumer Packaging - North America was $133 million, exceeding the estimated $123.40 million [4] - Operating EBITDA for Consumer Packaging - International reached $131 million, surpassing the average estimate of $123.44 million [4] Stock Performance - Shares of Berry Global have returned +2.6% over the past month, outperforming the Zacks S&P 500 composite's +1% change [3] - The stock currently holds a Zacks Rank 5 (Strong Sell), indicating potential underperformance relative to the broader market in the near term [3]

Financial Performance - Berry Global reported quarterly earnings of $1.09 per share, exceeding the Zacks Consensus Estimate of $1 per share, but down from $1.22 per share a year ago, representing an earnings surprise of 9% [1] - The company posted revenues of $2.39 billion for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 1.91%, but down from $2.85 billion year-over-year [2] Stock Performance - Berry Global shares have increased approximately 3.3% since the beginning of the year, outperforming the S&P 500's gain of 1.9% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $1.65 on revenues of $2.52 billion, and for the current fiscal year, it is $6.31 on revenues of $10.05 billion [7] - The estimate revisions trend for Berry Global is currently unfavorable, resulting in a Zacks Rank 5 (Strong Sell), indicating expected underperformance in the near future [6] Industry Context - The Containers - Paper and Packaging industry, to which Berry Global belongs, is currently ranked in the bottom 39% of over 250 Zacks industries, suggesting potential challenges ahead [8]

Core Insights - The global FIBC (Flexible Intermediate Bulk Container) market is projected to grow from USD 8.77 billion in 2025 to USD 12.86 billion by 2033, with a CAGR of 4.9% during the forecast period [14] - The demand for FIBCs is driven by the expansion of the food and pharmaceutical industries, as well as the need for lightweight bulk packaging solutions [1][2] Market Dynamics - The increase in international trade, particularly from emerging economies, is expected to drive the global FIBC market due to higher packaging requirements [2] - The rise of e-commerce retailing is creating opportunities for the FIBC market, with e-commerce expected to account for over 12% of total retail in Western Europe and over 19% in the United States by 2022 [3] - E-commerce companies are demanding 50% more FIBC packaging than traditional retail channels, driven by the need for product security and cost-effective shipping [4] Regional Analysis - Asia Pacific holds the largest market share and is estimated to grow at a CAGR of 5.9% during the forecast period, fueled by investments in e-commerce and changing consumer preferences towards reusable packaging [6] - Europe is the second-largest region, projected to reach USD 1,700 million by 2030 at a CAGR of 4.8%, with government efforts to attract foreign direct investment enhancing the FIBC market [9] - North America is the third-largest region, with e-commerce penetration expected to exceed 87% by 2024, significantly boosting the demand for FIBCs [10] Competitive Landscape - Key players in the FIBC market include Global-Pak, Bag Corp, Isbir Sentetik, Greif, and Berry Global Group Inc. [14] - Recent developments include Global-Pak's recycling program in collaboration with PureCycle Technologies to recycle bulk bags [13] Market Segmentation - The FIBC market is segmented by product type (Type A, B, C, D) and end-use industries, with the food segment dominating and expected to grow at a CAGR of 5.9% [14][16]

Core Insights - Berry Global's international operations are crucial for assessing its financial strength and growth potential in the current interconnected global economy [2][3] - The company's total revenue for the quarter ending September 2024 was $3.17 billion, reflecting a year-over-year increase of 2.6% [4] International Revenue Breakdown - Revenue from the "Rest of World" segment was $301 million, accounting for 9.50% of total revenue, which was a surprise increase of 2.39% compared to the projected $293.98 million [5] - European revenue totaled $1.08 billion, representing 34.15% of total revenue, but was a decline of 1.6% from the expected $1.1 billion [6] Future Revenue Projections - Analysts project total revenue for the current fiscal quarter to be $2.37 billion, indicating a decline of 16.9% from the prior-year quarter, with expected contributions of 12.3% from the "Rest of World" and 46.9% from Europe [7] - For the entire year, total revenue is forecasted at $10.15 billion, a reduction of 17.2% from the previous year, with the "Rest of World" contributing 11.5% ($1.16 billion) and Europe 43.4% ($4.4 billion) [8] Market Dependency and Earnings Impact - Berry Global's reliance on global markets for revenue presents both opportunities and risks, making the monitoring of international revenue trends essential for predicting future performance [9] - Analysts emphasize the importance of shifting earnings prospects, as they significantly influence stock prices in the short term [11]