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Jan 02, 2021
Berry Plastics Q1 2021 Earnings Report
Berry Global reported strong first quarter results and raised fiscal year 2021 earnings guidance.
Key Takeaways
Berry Global Group, Inc. reported strong first fiscal quarter 2021 results with net sales of $3.1 billion and 7 percent organic volume growth. The company raised its fiscal year 2021 operating EBITDA guidance range by $25 million to $2.175 - $2.225 billion and increased fiscal 2021 organic volume growth assumption by 2 percent, now targeting 4 percent.
Net sales of $3.1 billion; 7 percent organic volume growth
Operating income up 53 percent to $304 million
Operating EBITDA up 20 percent to $539 million
Adjusted net income per diluted share increase of 100 percent to $1.12
Berry Plastics
Berry Plastics
Berry Plastics Revenue by Segment
Revenue by Segment
Consumer Packaging - Intl Revenue
CapyFin.comConsumer Packaging - NA Revenue
CapyFin.comFlexibles Revenue
CapyFin.com Forward Guidance
Berry Global increased the range of operating EBITDA by $25 million to the new range of $2.175 to $2.225 billion for fiscal year 2021. Furthermore, they are increasing their organic volume growth assumption by 2 percent, and now anticipate volume growth of 4 percent. Free cash flow will remain in the range of $875 to $975 million.
Positive Outlook
- Strong volume growth momentum in the businesses
- Efforts to improve the timing lag of the pass-through of inflation in customer contracts
- Quicker recovery of markets that have been negatively impacted by COVID-19
- Increasing organic volume growth assumption by 2 percent, now anticipate volume growth of 4 percent
- Expect leverage ratio to be 3.8 to 3.9 times at the end of fiscal 2021
Challenges Ahead
- Significant cost increases in primary raw material, resin
- Modest inflation in other raw material and other costs
- Anticipated February increases
- Incremental timing lag of $50 million over the next three quarters related to this incremental inflation
- Capital expenditures of $650 million
Revenue & Expenses
Visualization of income flow from segment revenue to net income