| --- | --- | |-------|-----------------------------------------------------------------------------------------------------------------------| | | | | | | | | | | | | | | Earnings Conference Call Supplement Thursday, May 9th, 2024 @ 10AM ET Fiscal 2024 – 2nd Quarter Earnings Presentation | 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, as well as estimates and stateme ...

Financial Data and Key Metrics - Adjusted earnings per share for Q2 2024 was $1.95, similar to the prior year, while operating EBITDA was down 5% due to softer volumes and polymer cost pass-through timing [26] - The company reaffirmed its fiscal 2024 guidance, expecting low single-digit volume growth in the second half of the year and year-end leverage of 3.5x or lower [17] - Free cash flow is expected to be in the range of $800 million to $900 million for fiscal 2024, with cash from operations of $1.35 billion to $1.45 billion and capital expenditures of $550 million [44] Business Line Performance - Consumer Packaging International revenue was down 8%, primarily due to polymer cost pass-through, with EBITDA down 4% [27] - Consumer Packaging North America revenue declined 4%, driven by softer customer demand and lower selling prices, with EBITDA down 11% [29][31] - Flexibles revenue decreased 9%, primarily due to lower resin costs and volume softness, while EBITDA remained flat [32] - Health, Hygiene, and Specialties revenue was down 6%, with EBITDA essentially flat, driven by cost reductions offset by resin pass-through timing [33] Market Performance - North America showed strong performance, particularly in food, beverage, personal care, and home care markets, while Europe saw incremental improvements [27][29] - The company observed substrate conversions to plastic from paper, foam, glass, and metal, driven by sustainability efforts and consumer experience improvements [30] Strategic Direction and Industry Competition - The company is focused on portfolio optimization, lean transformation, and commercial excellence to drive growth and operational efficiency [10][13] - Berry expanded its cost savings program by an additional $25 million, bringing the total to $165 million, with savings expected by the end of fiscal 2025 [9] - The proposed spin-off and merger of the Health, Hygiene, and Specialties segment with Glatfelter is expected to close in the second half of 2024, creating a leading specialty materials company [11] Management Commentary on Operating Environment and Future Outlook - Management expressed confidence in the second half of fiscal 2024, driven by easing inflation, improved volumes, and cost reduction efforts [17][43] - The company remains optimistic about achieving peer-leading performance, with a focus on low leverage, cost reductions, and organic growth [46] Other Key Information - Berry completed two divestitures in Q2, generating approximately $150 million in revenue, and expects to generate over $2 billion from strategic divestitures in the next year [18][35] - The company has reduced net debt by more than $3 billion since mid-2019 and returned over $1.5 billion to shareholders through share repurchases and dividends [38] Q&A Session Summary Question: Confidence in achieving strong second-half growth - Management cited easier year-over-year comparisons, strong April volumes, and improved foodservice performance as key drivers of confidence [51][53] - The company expects an $80 million EBITDA improvement in the second half of 2024 compared to 2023, driven by volume recovery and resin cost pass-through timing [54] Question: Divestiture strategy and proceeds - The additional $1 billion in expected divestiture proceeds excludes the Health, Hygiene, and Specialties segment and already divested businesses, with proceeds expected to be used for deleveraging and core business growth [56] Question: Lean transformation and commercial excellence - The company is focused on improving first-pass yield, reducing unplanned downtime, and automating SG&A processes to drive cost reductions and growth [66][68] Question: Glatfelter transaction valuation - Management believes the market is undervaluing the Glatfelter transaction, citing improving business performance and significant synergy potential [103] Question: Volume improvement drivers - The company attributed volume improvements to reduced destocking, increased promotional activity, and improved consumer consumption levels [98][109] Question: Portfolio optimization focus - Divestiture opportunities are primarily in the Flexibles and Consumer Packaging International segments, with a focus on reducing industrial exposure and increasing consumer-facing businesses [111]

Berry Global (BERY) came out with quarterly earnings of $1.95 per share, beating the Zacks Consensus Estimate of $1.90 per share. This compares to earnings of $1.96 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 2.63%. A quarter ago, it was expected that this packaging company would post earnings of $1.29 per share when it actually produced earnings of $1.22, delivering a surprise of -5.43%.Over the last four quarters, the co ...

Berry Global (BERY) is expected to deliver a year-over-year decline in earnings on lower revenues when it reports results for the quarter ended March 2024. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.The earnings report, which is expected to be released on May 9, 2024, might help the stock move higher if these key numbers are better than expecta ...

NEW YORK, April 17, 2024 /PRNewswire/ -- NewHold Enterprises, an operationally focused investment firm, is pleased to announce the sale of F&S Tool, a leading North American designer and manufacturer of precision injection molding tools, to Berry Global Group, Inc. (NYSE: BERY). F&S Tool operates a 90,000 square foot facility located in Erie, Pennsylvania, with 11 issued/pending patents and 105 employees focused on proprietary technologies to serve a large and diverse addressable market. The sale was comple ...

~ Kevin M. Fogarty to serve as Non-Executive Chair of the Board of Directors for the proposed newly combined company ~ James M. Till to serve as Executive Vice President, Chief Financial Officer & Treasurer ~ Tarun Manroa to serve as Executive Vice President, Chief Operating Officer CHARLOTTE, N.C., April 11, 2024 (GLOBE NEWSWIRE) -- Glatfelter Corporation (NYSE:GLT), a leading global supplier of engineered materials, in anticipation of the previously announced proposed merger of the majority of Berry Globa ...

EVANSVILLE, Ind.--(BUSINESS WIRE)--Berry Global, a leader in the design and manufacture of innovative, sustainable packaging solutions recently opened the doors to its “Circular Innovation and Training Center” in Tulsa, Oklahoma. The new 12,000 square foot center will accelerate the development of highly innovative products driven by superior materials science and engineering, foster a collaborative space for training, and incubate cutting-edge stretch film projects that help keep materials in use and out o ...

champpixs Introduction US packaging products maker Berry Global Group (NYSE:BERY) is the second largest position in my stock portfolio at the moment and February 7 was an eventful day for investors. Besides releasing its Q1 FY24 financial results, the company revealed that the spin-off and merger of the majority of its Health, Hygiene and Specialties segment in a transaction that values this business at $2.6 billion. Under the deal, Berry Global will receive $1 billion in cash and its global nonwovens a ...

Berry Global Group, Inc. (BERY) reported first-quarter fiscal 2024 (ended December 2023) adjusted earnings of $1.22 per share, which missed the Zacks Consensus Estimate of $1.29. The bottom line decreased 6% year over year.Net sales of $2.85 billion missed the Zacks Consensus Estimate of $2.99 billion. The top line decreased 7% year over year due to a 3% dip in volumes and lower selling prices, which declined $189 million due to the pass-through of lower resin costs. Reduced demand in the consumer and indus ...

Shares of Berry Global (BERY -11.78%) fell 11.8% on Wednesday after the plastic packaging solutions company announced weaker-than-expected quarterly results.A "solid" quarter for Berry Global amid macroheadwindsFor its fiscal first quarter ended Dec. 30, 2023, Berry's net sales declined 7% year over year to $2.85 billion, translating to a 6% drop in adjusted (non-GAAP) earnings to $1.22 per share. Most analysts were looking for higher earnings of $1.29 per share on revenue closer to $2.99 billion.Nonetheles ...