Investment Strategy - The primary objective is to beat the market, specifically aiming for stocks that can outperform the S&P's historical return of 7-8% annually [1] - The investment approach is grounded in GARP (Growth at a Reasonable Price) with a strong emphasis on fundamental analysis [1] - The focus is on consumer discretionary stocks, as they fall within the analyst's circle of competence, with occasional coverage of tech stocks if the business is understood or the analyst is a paying customer [1] Research Process - The analyst engages in extensive research, including analyzing financial statements, listening to earnings calls, and reviewing Investor Relations websites to develop investment theses [1] Disclosure - The analyst has no stock, option, or derivative positions in any mentioned companies and no plans to initiate such positions within the next 72 hours [2] - The article reflects the analyst's personal opinions and is not influenced by compensation or business relationships with any mentioned companies [2]

Financial Performance - Net sales for the fiscal year ended September 28, 2024, were $12,258 million, a decrease of 3.2% from $12,664 million in the previous fiscal year [152]. - Operating income decreased to $937 million, down 13.1% from $1,079 million year-over-year [152]. - Net income for the period was $516 million, a decline of 15.3% compared to $609 million in the prior year [152]. - Basic net income per share was $4.48, down from $5.07, reflecting a decrease of 11.6% [152]. - Consolidated net income for fiscal 2024 was $516 million, down from $609 million in 2023 and $766 million in 2022 [262]. - Diluted EPS for fiscal 2024 was $4.38, compared to $4.95 in 2023 and $5.77 in 2022 [262]. - Cash flows from operating activities were $1,405 million, a decrease from $1,615 million in the previous year [160]. - Total stockholders' equity increased to $3,608 million from $3,216 million, reflecting a growth of 12.2% [158]. Sales Contribution by Segment - In fiscal 2024, Consumer Packaging International accounted for 32% of consolidated net sales [16]. - Consumer Packaging North America contributed 24% to consolidated net sales in fiscal 2024 [17]. - The Flexibles segment represented 23% of consolidated net sales in fiscal 2024 [18]. - Health, Hygiene & Specialties accounted for 21% of consolidated net sales in fiscal 2024 [19]. - Packaging accounted for 79% of net sales in fiscal 2024, up from 76% in fiscal 2023 [260]. - Net sales from the United States and Canada in fiscal 2024 were $6,781 million, compared to $6,893 million in fiscal 2023 [258]. Debt and Financial Obligations - As of September 28, 2024, the company had $1.5 billion in term loans and a $1.0 billion revolving credit facility with no borrowings outstanding [124]. - Total long-term debt amounts to $8,315 million, with a current portion of $810 million, resulting in long-term debt, less current portion, of $7,505 million [201]. - Future maturities of long-term debt total $8,346 million, with significant amounts due in 2026 ($2,593 million) and 2029 ($1,489 million) [210]. - The Company had unused borrowing capacity of $802 million under its $1.0 billion asset-based revolving line of credit as of the fiscal year-end [204]. - The Company extended the maturity date of $1,550 million of its outstanding term loans to July 2029 and issued $800 million of 5.65% First Priority Senior Secured Notes due 2034 [203]. Assets and Liabilities - Total assets increased slightly to $16,613 million from $16,587 million year-over-year [158]. - Current liabilities rose significantly to $3,672 million, up from $2,713 million, indicating a 35.5% increase [158]. - The balance of inventories as of fiscal 2024 was $1,631 million, compared to $1,557 million in fiscal 2023 [179]. - Property, plant, and equipment net value was $4,575 million in fiscal 2024, slightly down from $4,576 million in fiscal 2023 [180]. - Goodwill increased to $5,090 million in fiscal 2024 from $4,981 million in fiscal 2023, reflecting acquisitions and foreign currency adjustments [182]. Taxation and Deferred Tax Assets - The total current income tax expense for fiscal 2024 was $191 million, a decrease from $250 million in 2023 and $216 million in 2022 [225]. - The valuation allowance against deferred tax assets was $133 million in fiscal 2024, up from $114 million in 2023 [229]. - Total deferred tax assets increased to $888 million in fiscal 2024 from $740 million in 2023 [228]. - The ending unrecognized tax benefits decreased to $99 million in fiscal 2024 from $107 million in 2023 [231]. Employee and Pension Information - The Company employed approximately 42,000 employees at the end of fiscal 2024, with about 19% covered by collective bargaining agreements [221]. - The majority of the underfunded status of pension plans in Mainland Europe, totaling $68 million, relates to non-contributory pension plans in Germany [235]. - At the end of fiscal 2024, the Company reported $911 million in total benefit obligations, slightly up from $854 million at the end of fiscal 2023 [238]. - The weighted-average discount rate for benefit obligations in North America decreased from 5.6% in 2023 to 4.7% in 2024 [240]. Business Consolidation and Strategic Initiatives - The Company expects total business consolidation cash and non-cash expenses to be approximately $250 million, aimed at countering general economic softness [245]. - The Company initiated business consolidation cost savings initiatives across all segments, with full implementation expected by the end of fiscal 2025 [245]. - Cumulative costs attributed to business consolidation programs since 2022 total $184 million [248]. Mergers and Acquisitions - The company plans to spin off and merge its Health, Hygiene & Specialties Global Nonwovens and Films business with Glatfelter Corporation [167]. - The company entered into a definitive agreement to sell its Specialty Tapes business for a headline purchase price of $540 million, with annual revenues of $340 million in fiscal 2024 [265]. - A merger agreement was announced with Amcor plc, where each share of the company's common stock will be converted into the right to receive 7.25 Amcor ordinary shares [266]. - The merger completion is subject to conditions including stockholder adoption and regulatory approvals [267]. Shareholder Returns - The Company’s Board of Directors authorized a quarterly cash dividend of $0.31 per share, payable on December 16, 2024 [271]. - In fiscal 2024, the company repurchased approximately 2.0 million shares for $120 million, at an average price of $59.39 [249]. - As of fiscal 2024, authorized repurchases of $321 million remain available to the company [250].

Financial Data and Key Metrics Changes - The combination of Amcor and Berry is expected to create a combined revenue of over $24 billion and an annual cash flow exceeding $3 billion, with identified synergy opportunities of $650 million [14][15][39] - The combined EBITDA margin is projected to expand to 18%, with an EBITDA of $4.3 billion including full run-rate synergies [15][39] - Adjusted EPS accretion is expected to exceed 35% compared to Amcor's last 12-month stand-alone EPS [15][39] Business Line Data and Key Metrics Changes - The combined entity will enhance capabilities in flexible packaging and containers, with a focus on health care and consumer markets, where over 90% of sales will be directed [20][25] - The combined sales in attractive categories are expected to represent nearly $10 billion, accounting for approximately 40% of total sales [29] Market Data and Key Metrics Changes - The combined company will serve over 20,000 customers in more than 140 countries, employing 70,000 people across 400 production facilities [21][22] - The emerging markets platform is projected to represent $5 billion or more than 20% of combined sales, with significant cross-selling opportunities identified [29] Company Strategy and Development Direction - The merger aims to accelerate volume-driven organic growth with a strong focus on sustainability and innovation [10][11] - The strategy includes optimizing the portfolio and investing in strategically attractive categories and geographies, enhancing the combined company's ability to deliver value [19][20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in realizing top-line and growth synergies, particularly in health care and emerging markets, which are expected to drive future growth [54][56] - The management team highlighted a commitment to sustainability and innovation, aiming for 100% recyclable, reusable, or compostable products by 2025 [35][36] Other Important Information - The merger is seen as a defining moment in the global packaging industry, creating a leading provider of sustainable packaging solutions [46] - The combination is expected to enhance the shareholder value creation model, with a commitment to growing the annual dividend from Amcor's current base of $0.51 per share [40][45] Q&A Session Summary Question: Concerns about Berry's historical organic volume growth - Management acknowledged past struggles but emphasized confidence in realizing growth synergies through the combination, particularly in health care and emerging markets [54][56] Question: Comparison with the Bemis acquisition - Management noted that the Bemis acquisition was different in nature, focusing on a similar business line, whereas the Berry acquisition is complementary, enhancing capabilities in containers and closures [63] Question: Portfolio refinement opportunities - Management indicated that it is early days but expressed intentions to rigorously assess the combined portfolio for growth and margin attractiveness [71][72] Question: Regulatory concerns - Management stated that the overlap between Berry and Amcor is limited, reducing regulatory risks compared to the Bemis acquisition [82] Question: Market growth expectations - Management expects market growth to be in the low single digits, with the combination potentially adding 100 basis points to growth [87][88] Question: Resin procurement opportunities - Management highlighted that the combined company will have significant procurement capabilities, particularly in resin, which is a major cost synergy driver [95][96] Question: Future M&A opportunities - Management acknowledged the challenges of finding suitable acquisitions but expressed confidence in exploring adjacencies and maintaining a focus on high-growth categories [102][106]

FISCAL 2024 – 4TH | --- | --- | |----------------------------|-------| | | | | TUESDAY, NOVEMBER 19, 2024 | | | --- | --- | --- | |-------|--------------------------------------------------------------------------|-------| | | | | | | | | | | A leading pure-play supplier of sustainable global packaging solutions | | | | | | Safe Harbor Statements Forward-Looking Statements Statements in this presentation that are not historical, including statements relating to the expected future performance of the Company ...

Berry Global (BERY) reported $3.17 billion in revenue for the quarter ended September 2024, representing a year-over-year increase of 2.6%. EPS of $2.27 for the same period compares to $2.28 a year ago.The reported revenue compares to the Zacks Consensus Estimate of $3.15 billion, representing a surprise of +0.56%. The company delivered an EPS surprise of +0.89%, with the consensus EPS estimate being $2.25.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- an ...

MONSEY, N.Y., Nov. 19, 2024 (GLOBE NEWSWIRE) -- The law firm of Wohl & Fruchter LLP is investigating the fairness of the proposed merger of Berry Global Group, Inc. (NYSE: BERY) (“Berry”) with Amcor plc (“Amcor”) in an all-stock transaction that values Berry at approximately $73.59 per share. The implied deal price is below the price targets for Berry of at least eight Wall Street analysts, as per the list below (source: TipRanks). If you remain a Berry shareholder and have concerns about the fairness of th ...

Core Viewpoint - Berry Global reported quarterly earnings of $2.27 per share, exceeding the Zacks Consensus Estimate of $2.25 per share, but slightly down from $2.28 per share a year ago, indicating a 0.89% earnings surprise [1] - The company generated revenues of $3.17 billion for the quarter ended September 2024, surpassing the Zacks Consensus Estimate by 0.56% and showing an increase from $3.09 billion year-over-year [2] Earnings Performance - Berry Global has surpassed consensus EPS estimates three times over the last four quarters [2] - The company had a previous quarter earnings expectation of $2.03 per share but reported $2.18, resulting in a surprise of 7.39% [1] Future Outlook - The sustainability of the stock's price movement will depend on management's commentary during the earnings call [3] - Current consensus EPS estimate for the upcoming quarter is $1.39 on revenues of $2.91 billion, and for the current fiscal year, it is $8.17 on revenues of $12.43 billion [8] Industry Context - The Containers - Paper and Packaging industry, to which Berry Global belongs, is currently ranked in the bottom 38% of over 250 Zacks industries, which may impact stock performance [9] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, suggesting that investors should monitor these revisions closely [6]

Transaction Details - Berry shareholders will receive a fixed exchange ratio of 7.25 Amcor shares for each Berry share held, resulting in Amcor and Berry shareholders owning approximately 63% and 37% of the combined company, respectively [1] - The transaction values Berry's common stock at $73.59 per share and has received unanimous approval from both Amcor and Berry boards of directors [1] Strategic Benefits - The combination creates a global leader in consumer packaging solutions with a broader flexible film and converted film offering, a scaled containers and closures business, and a unique global healthcare portfolio [2] - The combined company will have unprecedented innovation capabilities and scale, enabling accelerated growth, sustainability solutions, and portfolio transformation [2] - The merger strengthens positions in high-growth, high-value categories such as Healthcare, Protein, Pet Food, Liquids, Beauty & Personal Care, and Food Service [4] - The combined company will have a combined R&D investment of $180 million per annum, ~1,500 R&D professionals, 10 innovation centers worldwide, and 7,000+ patents, registered designs, and trademarks [4] - The merger optimizes the footprint with operations in 140+ countries through ~400 production facilities, providing local expertise and global capabilities [4] Financial Benefits - The combined company will have revenues of $24 billion and adjusted EBITDA of $4.3 billion, including run-rate synergies [5] - The transaction is expected to deliver $650 million in cost, growth, and financial synergies by the end of the third year, including $530 million in annual run-rate pre-tax cost synergies and $60 million in annual run-rate financial savings [5] - The combined company expects over 35% adjusted cash EPS accretion and a double-digit return on investment [5] - The transaction is expected to enhance long-term shareholder value creation with sustained higher expected earnings growth from 10-15% to 13-18% per annum [5] Leadership and Structure - Peter Konieczny will serve as CEO, Graeme Liebelt as Chairman, and Stephen Sterrett as Deputy Chairman of the combined company [7] - The combined entity will be named Amcor plc, maintaining its primary listing on the NYSE and secondary listing on the ASX, with the global head office remaining in Zurich, Switzerland [7] - Amcor's board of directors will expand to 11 directors, with 4 nominated by Berry [8] Industry Impact - The merger combines two highly complementary businesses, creating a global leader in consumer packaging solutions with enhanced innovation and sustainability capabilities [2][4] - The combined company will offer customers a wider range of sustainable solutions, driving circularity, increasing the use of alternative materials, and lowering the carbon footprint [4] - The merger strengthens the combined company's position in high-growth markets and enhances supply chain resilience with a balanced geographic presence across continents [4]

Wall Street analysts expect Berry Global (BERY) to post quarterly earnings of $2.25 per share in its upcoming report, which indicates a year-over-year decline of 1.3%. Revenues are expected to be $3.15 billion, up 2.1% from the year-ago quarter.Over the last 30 days, there has been a downward revision of 0.6% in the consensus EPS estimate for the quarter, leading to its current level. This signifies the covering analysts' collective reconsideration of their initial forecasts over the course of this timefram ...

Wall Street expects a year-over-year decline in earnings on higher revenues when Berry Global (BERY) reports results for the quarter ended September 2024. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on November ...