Loading...
•
Jun 27, 2020
Berry Plastics Q3 2020 Earnings Report
Berry Global Group reported strong results driven by acquisition and organic volume growth.
Key Takeaways
Berry Global Group, Inc. reported a 50% increase in net sales to $2.9 billion and a 61% increase in operating income to $347 million for the third quarter of 2020. Adjusted earnings per share increased by 69% to $1.52, and the company increased its fiscal year 2020 free cash flow guidance to $830 million.
Net sales increased by 50 percent to $2.9 billion.
Operating income increased by 61 percent to $347 million.
Adjusted net income per diluted share increased by 69 percent to $1.52.
Free cash flow guidance increased to $830 million for fiscal year 2020.
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 Global increased its fiscal year 2020 free cash flow guidance to $830 million, which includes $1.45 billion of cash flow from operations partially offset by capital expenditures of $620 million.
Positive Outlook
- Health, Hygiene & Specialties segment to produce low double-digit growth.
- Consumer Packaging - North American business will experience low-single digit volume growth as headwinds in the foodservice space moderate along with continued solid demand in hygiene and grocery markets.
- Approximately $85 million of annual cost synergies expected to be realized in fiscal 2020.
- Company anticipates sequential improvements over the next several quarters as the COVID-19 headwinds abate.
- Acquisition of RPC is truly a transformational and complementary opportunity.
Challenges Ahead
- Consumer Packaging - International and Engineered Material businesses will experience low-single digit and mid-single digit volume declines in fiscal fourth quarter, respectively, related to the weakness from the impact of COVID-19.
- Cash taxes are expected to be $170 million.
- Cash interest costs are projected at $430 million.
- Working capital, restructuring and other costs to be $50 million.
- Approximately 35 percent of portfolio negatively impacted related to COVID-19.
Revenue & Expenses
Visualization of income flow from segment revenue to net income