Berry Global Q2 Report 2024
Kevin Kwilinski, Berry’s CEO said, “Berry once again produced solid financial results, consistent with our expectations. Our teams executed well, offsetting an extended period of sluggish macroeconomic demand along with persistent inflation in our primary raw material to start fiscal 2024. We undertook additional structural enhancements across our businesses and increased our original cost savings target of $140 million to $165 million. We continue to expect a $55 million contribution from the program in fiscal 2024 with the additional $25 million to be realized in fiscal 2025. Moving forward, we remain steadfast in our commitment to prudent management and strategic advancement.
Highlights
- GAAP: Net sales of $3.1 billion; Operating income of $208 million; Earnings per share of $0.98
- Non-GAAP: Operating EBITDA of $522 million; Adjusted earnings per share of $1.95
- Second quarter volume and earning results in-line with expectations; Strong April volumes provides confidence for low-single digit volume growth outlook in 2H
- Increased cost savings program target by 18% or an additional $25 million
- Continued progress in portfolio optimization with two divestitures closed; proceeds could exceed $2 billion in cash from strategic divestitures over the next year ($1 billion from previously announced merger and $1 billion from future portfolio optimization opportunities)
- Reaffirming fiscal 2024 outlook: Adjusted EPS of $7.35 – $7.85 and free cash flow of $800 – $900 million
