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Apr 03, 2021
Berry Plastics Q2 2021 Earnings Report
Berry Global Group reported strong second quarter results and raised fiscal year 2021 earnings guidance.
Key Takeaways
Berry Global Group, Inc. reported a 13% increase in net sales to $3.4 billion and a 34% increase in adjusted earnings per share to $1.59 compared to the prior year. The company raised its fiscal year 2021 operating EBITDA guidance by $50 million to $2.25 billion and increased its organic volume growth assumption from 4% to 5%.
Net sales increased by 13% to $3.4 billion.
Organic volume grew by 5%.
Operating income increased by 17% to $333 million.
Adjusted net income per diluted share increased by 34% to $1.59.
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 Group is increasing its organic volume growth assumption for fiscal 2021 to 5% and raising its operating EBITDA guidance by $50 million to $2.25 billion. Free cash flow will remain in the range of $875 to $975 million.
Positive Outlook
- Increasing organic volume growth assumption for fiscal 2021 to 5 percent.
- Raising operating EBITDA guidance by $50 million to $2.25 billion.
- Expect to be in targeted leverage range by the end of fiscal 2021.
- Continued strength in pipeline.
- Increased level of capital expenditures to support incremental growth projects.
Challenges Ahead
- Includes a negative impact from inflation and the associated timing lag in passing through inflationary costs.
- Expect the majority of the impact from the recent unprecedented increases in resin prices in the United States, to impact results in the June 2021 quarter.
- Guidance assumes that both of these factors dissipate in the September quarter.
- Operating EBITDA in the back-half of the year to be split relatively evenly between the June and September quarters
- Second half prior year results adjusted for recent divestitures and the COVID-19 related mix benefits.
Revenue & Expenses
Visualization of income flow from segment revenue to net income