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Oct 02, 2021
Berry Plastics Q4 2021 Earnings Report
Berry Global Group reported Q4 and Fiscal Year 2021 results, with net sales growth driven by increased selling prices, offset by divestiture sales and supply chain challenges. Operating income decreased due to unfavorable price cost spread and prior year divestiture income.
Key Takeaways
Berry Global Group's Q4 2021 results showed net sales growth of 22%, driven by increased selling prices, but organic volumes were down 1% due to supply chain and labor challenges. The company reported a decrease in operating income primarily attributed to an unfavorable price cost spread. For the full fiscal year, Berry achieved a net sales record of $13.9 billion and adjusted EPS of $5.80.
Net sales increased by 22% due to higher selling prices, offset by divestiture sales.
Organic volumes decreased by 1% due to supply chain and labor challenges.
Operating income decreased due to unfavorable price cost spread and prior year divestiture income.
Fiscal year net sales reached a record of $13.9 billion with 4% organic volume growth.
Revenue by Segment
Forward Guidance
For fiscal year 2022, Berry expects adjusted earnings per share (EPS) to be $7.20 - $7.70, and are targeting 2% organic volume growth. They are targeting free cash flow of $900 million – $1.0 billion with includes cash flow from operations of $1.7 -$1.8 billion partially offset by capital expenditures of $800 million.
Positive Outlook
- Adjusted earnings per share (EPS) to be $7.20 - $7.70
- Targeting 2% organic volume growth
- Free cash flow of $900 million – $1.0 billion
- Cash flow from operations of $1.7 -$1.8 billion
- Increased level of capital expenditures
Challenges Ahead
- Softer first half of the fiscal year
- Significant cost inflation
- Labor challenges
- Supply chain challenges
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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