Berry Global Group Inc

Latest Results (22.12.2024):

Fourth Quarter 2024 Financial Performance

Berry Global Group Inc. reported net sales of $3.2 billion for the fourth quarter of 2024, marking a 3% increase from the previous year. This growth was driven by higher selling prices and a 1% organic volume growth, despite the impact of completed divestitures. Operating income for the quarter was $269 million, a decrease of 11% compared to the same period last year, due to higher restructuring costs and depreciation expenses.

Fiscal Year 2024 Overview

For the fiscal year 2024, Berry Global Group Inc. achieved net sales of $12.3 billion, a slight decrease of 3% from the previous year. The company reported an operating income of $937 million, down 13% year-over-year. Earnings per share for the fiscal year were $4.38, reflecting a 12% decline. Despite these challenges, Berry successfully achieved its adjusted earnings per share and free cash flow targeted guidance.

Shareholder Returns and Leverage

Berry Global Group Inc. returned $260 million to shareholders in fiscal 2024, with $120 million through share repurchases and $140 million in dividends. The company achieved its leverage target goal of 3.5x, the lowest in its history. Looking ahead, Berry plans to continue reducing leverage while returning cash to shareholders through ongoing share repurchases and dividends, subject to market conditions and financial considerations.

Dividend Increase and Share Repurchases

The Board of Directors of Berry Global Group Inc. announced a nearly 13% increase in the quarterly cash dividend to $0.31 per share, payable on December 16, 2024. During fiscal 2024, the company repurchased over 2.0 million shares for $120 million, with $321 million remaining authorized for future share repurchases. Berry intends to continue share repurchases while focusing on lowering leverage.

Fiscal Year 2025 Outlook

For fiscal year 2025, Berry Global Group Inc. anticipates adjusted earnings per share in the range of $6.10 to $6.60. The company expects cash flow from operations to be between $1.125 billion and $1.225 billion, with free cash flow projected at $600 million to $700 million. Berry remains committed to further debt reduction and returning capital to shareholders, while focusing on accelerating organic growth and increasing margins through improved operations.