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A month has gone by since the last earnings report for Berry Global (BERY). Shares have added about 0.2% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Berry Global due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
Berry Global’s Q1 Earnings Top Estimates, Sales Increase Y/Y
Berry Global reported first-quarter fiscal 2025 (ended December 2024) adjusted earnings of $1.09 per share, which beat the Zacks Consensus Estimate of $1. The bottom line increased 5% year over year.
Net sales of $2.39 billion beat the consensus estimate of $2.34 billion. The top line increased 2.2% year over year, primarily driven by higher selling prices and organic volume growth of 2%.
Segmental Discussion
Berry Global has completed the tax-free spin-off and merger of the majority of its Health, Hygiene, and Specialties segment, including the global nonwovens and films business, with Glatfelter Corporation. Following the completion of the deal and its continued focus on driving a positive product mix within the Engineered Materials segment toward higher-value products, BERY has renamed the unit Flexibles.
Consumer Packaging - International net sales amounted to $885 million (accounting for 37.2% of total sales), down 3.4% from the year-ago quarter’s figure. Our estimate for segmental sales was $743.1 million. Organic volume growth of 1% was driven by improvement in the industrial markets. Operating income of $28 million decreased 3.4% year over year.
Consumer Packaging - North America’s net sales totaled $769 million (accounting for 32.2% of total sales), up 10% year over year due to 3% growth in volumes. Our estimate for segmental sales was $602.4 million. Operating income decreased 1.7% year over year to $59 million.
Net sales from the Flexibles segment amounted to $731 million (accounting for 30.6% of total sales), which increased 1.8% year over year. Organic volume grew 1% led by recovery in the European industrial markets. Our estimate for segmental sales was $532.5 million. Operating income was $65 million, down 14.5% year over year.
Berry Global’s Costs & EBITDA
Berry Global’s cost of goods sold increased 1.4% to $2.9 billion. Selling, general and administrative expenses increased 8.3% year over year to $223 million. The company reported operating EBITDA of $378 million, up 3.8% year over year. Its operating income decreased 7.9% to $152 million.