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Dec 28, 2019
Berry Plastics Q1 2020 Earnings Report
Berry Global reported solid first quarter results driven by strong sales and operating income growth.
Key Takeaways
Berry Global Group, Inc. reported a strong first quarter with net sales up 43% to over $2.8 billion and operating income up 13% to $199 million. The company reaffirmed its fiscal year 2020 free cash flow guidance of $800 million.
Net sales increased by 43 percent to over $2.8 billion.
Operating income increased by 13 percent to $199 million.
Operating EBITDA increased by 36 percent to $451 million.
Company reaffirmed fiscal year 2020 free cash flow guidance of $800 million.
Revenue by Segment
Forward Guidance
The company anticipates delivering positive organic base volumes in the March 2020 quarter, with the Consumer Packaging business continuing to grow. Fiscal 2020 free cash flow guidance of $800 million is reaffirmed.
Positive Outlook
- Anticipate delivering positive organic base volumes in the March 2020 quarter.
- Consumer Packaging business is expected to continue to grow.
- Engineered Materials and Health, Hygiene & Specialties segments continuing their sequential improvement throughout fiscal 2020.
- Expect Engineered Materials to inflect to positive growth in March 2020 quarter.
- Health, Hygiene & Specialties segment inflecting in June 2020 quarter.
Challenges Ahead
- Fiscal 2020 free cash flow guidance of $800 million includes a use of cash for working capital and other restructuring related costs related to the RPC acquisition of $90 million.
- Cash taxes of $160 million and cash interest of $500 million.
- Softness in European markets persist, anticipate a headwind to fiscal year earnings forecast.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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