Free Post Earnings Research Report: Berry’s Sales Jumped 16%; EPS Surged 33%

LONDON, UK / ACCESSWIRE / December 29, 2017 / Active-Investors.com has just released a free earnings report on Berry Global Group, Inc. (NYSE: BERY). If you want access to this report all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=BERY. Berry Global reported its fourth quarter fiscal 2017 operating results on November 16, 2017. The packaging Company topped earnings expectations and posted record free cash flow for a fiscal year. Register today and get access to over 1,000 Free Research Reports by joining our site below: www.active-investors.com/registration-sg.

Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, Berry Global Group most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below: www.active-investors.com/registration-sg/?symbol=BERY.

Earnings Highlights and Summary

For the quarter ended September 30, 2017, Berry Global’s net sales jumped 16% to $1.88 billion compared to net sales of $1.62 billion for Q4 FY16. Net sales’ increase was primarily attributed to acquisition net sales of $288 million, selling price increases of $9 million due to the pass through of higher resin prices, and an $11 million positive impact from foreign currency changes. The Company’s reported numbers fell short of analysts’ estimates of $1.90 billion.

Berry Global’s net sales increased 9% to $7.1 billion on a y-o-y basis in fiscal year 2017 compared to $6.5 billion in FY16.

Berry Global’s operating income surged 32% to $199 million in Q4 FY17 compared to $151 million in Q4 FY16. The increase in operating income was primarily attributed to acquisition operating income of $20 million, an $18 million improvement in its product mix and price/cost spread, $6 million decrease in selling, general, and administrative (SG&A) and operating expenses, and a $4 million positive impact from currency translation.

Berry Global’s net income was $110 million, or $0.81 per diluted share, for Q4 FY17 compared to $77 million, or $0.61 per diluted share, in Q4 FY16. The Company’s adjusted net income per diluted share in the reported quarter was 19% higher at $0.87 compared to $0.73 in the prior year’s corresponding quarter, and came in ahead of Wall Street’s estimates of $0.79 per share.

Berry Global Group’s Segment Results

For FY17, the Engineered Materials segment’s net sales surged 46% to $2.38 billion on a y-o-y basis, primarily attributed to acquisition net sales of $788 million and selling price increases of $67 million. The segment’s operating income soared 74% y-o-y to $316 million, primarily attributed to acquisition operating income of $62 million, a $71 million improvement in the segment’s product mix and price/cost spread, a $13 million decrease in SG&A expenses, a $3 million decrease in business integration and restructuring costs, and a slight improvement in productivity in manufacturing.

During FY17, the Health, Hygiene, and Specialties’ division’s net sales fell 1% on a y-o-y basis to $2.37 billion, primarily attributed to extra days in FY16 of $25 million, selling price decreases of $23 million, and a slightly unfavorable impact from foreign currency.

The segment’s operating income jumped 11% to $216 million on a y-o-y basis, primarily attributed to a $27 million decrease in business integration and restructuring costs associated with the Avintiv acquisition, a $13 million improvement in productivity in manufacturing, a $12 million decrease in depreciation and amortization (D&A) expense, a $5 million impact from base volumes, and a $5 million decrease in SG&A expenses.

For FY17 Consumer Packaging segment’s net sales dropped 5% to $2.35 billion on a y-o-y basis, primarily attributed to an $83 million negative impact from base volumes and $43 million from extra days in FY16. The segment’s operating income fell 1% to $200 million on a y-o-y basis, primarily attributed to a base volume decline of $17 million, an $11 million negative impact from productivity in manufacturing, $5 million from extra days in FY16, and a slight decrease in the segment’s product mix and price/cost spread.

Cash Flow and Capital Structure

For Q4 FY17, Berry Global’s cash flow from operating activities was $395 million and came in at $975 million for fiscal year 2017. The Company’s adjusted free cash flow was $278 million for the reported quarter, reflecting a 20% increase compared to the prior year’s same quarter of $231 million. Berry Global’s adjusted free cash flow for FY17 was a fiscal year record of $601 million, reflecting a 16% growth compared to $517 million in FY16.

Berry Global’s total debt less cash and cash equivalents at the end of the September 2017 quarter was $5,335 million.

Outlook

Berry Global is forecasting fiscal year 2018 cash flow from operations and adjusted free cash flow to be $965 million and $610 million, respectively.

Stock Performance Snapshot

December 28, 2017 – At Thursday’s closing bell, Berry Global’s stock was slightly up 0.24%, ending the trading session at $58.83.

Volume traded for the day: 384.61 thousand shares.

Stock performance in the last three-month – up 4.57%; previous six-month period – up 4.03%; past twelve-month period – up 18.63%; and year-to-date – up 20.73%

After yesterday’s close, Berry Global’s market cap was at $7.71 billion.

Price to Earnings (P/E) ratio was at 23.17.

The stock is part of the Consumer Goods sector, categorized under the Packaging & Containers industry. This sector was flat at the end of the session.

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