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Apr 02, 2022
Berry Plastics Q2 2022 Earnings Report
Berry Global Group's Q2 2022 results were reported, featuring a revenue increase and strong adjusted EPS.
Key Takeaways
Berry Global Group reported a net sales increase of 12% to $3.8 billion. The diluted earnings per share was $1.50, and the adjusted diluted earnings per share was $1.93. The company reaffirms fiscal year 2022 adjusted earnings per share and free cash flow guidance.
Net sales increased by 12% to $3.8 billion.
Operating income reached $341 million, with an operating EBITDA of $555 million.
Diluted earnings per share stood at $1.50, while adjusted diluted earnings per share was $1.93.
The company repurchased $350 million of shares in the first half of fiscal year 2022 and anticipates further repurchases in the second half.
Berry Plastics
Berry Plastics
Berry Plastics Revenue by Segment
Revenue by Segment
Consumer Packaging - Intl Revenue
CapyFin.comConsumer Packaging - NA Revenue
CapyFin.com Forward Guidance
Berry is reaffirming its fiscal 2022 guidance of adjusted earnings per share of $7.20 to $7.70 and free cash flow range of $900 million to $1 billion.
Positive Outlook
- Berry remains committed to recovering the significant inflation incurred that started in fiscal 2021.
- Berry continues to anticipate an improved second half of the year as the Company recovers inflation and supply chains continue to improve, along with the startup of new business and capital investments.
- Berry expects organic volume growth to sequentially improve and expects low-single digit organic volume growth in the second half of the year.
- The Company expects to continue to opportunistically repurchase shares throughout the second half of its fiscal year given the attractive return opportunity at prevailing prices.
- Berry will continue to focus on driving organic growth, supplemented by inorganic opportunities, while providing more consistent return of capital to create maximum value for shareholders.
Challenges Ahead
- The updated range assumes lower operating EBITDA, primarily due to the timing lag of recovering higher costs and foreign currency headwind from the strengthening US dollar.
- There is some expected volume weakness in the European and Chinese markets.
- For the full year the Company expects volumes to be flat to up 1%, modestly lower than prior guidance, as a result of timing of new business startups and continued supply chain challenges.
- The company faces persistently higher costs and tough year-over-year comparisons.
- The company is exposed to risks related to market disruptions and increased market volatility as a result of Russia’s invasion of Ukraine.
Revenue & Expenses
Visualization of income flow from segment revenue to net income