Free Research Report as Berry Global’s Sales Jumped 18% and Adjusted EPS Surged 34%

LONDON, UK / ACCESSWIRE / March 07, 2018 / Active-Investors.com has just released a free earnings report on Berry Global Group, Inc. (NYSE: BERY) (“Berry”). 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. The Company reported its first quarter fiscal 2018 operating and financial results on February 07, 2018. The packaging Company exceeded earnings expectations, and also raised its operating and free cash flow guidance for the full fiscal year 2018. Register today and get access to over 1000 Free Research Reports by joining our site below:

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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 three months ended December 30, 2017, Berry’s net sales grew 18% to $1.78 billion compared to $1.50 billion in Q1 FY17, primarily attributed to acquisition net sales of $267 million; a favorable impact from currency translation of $18 million, and increases in selling prices due to the pass through of higher resin prices. The Company’s revenue numbers lagged analysts’ estimates of $1.79 billion.

For Q1 FY18, Berry’s operating income advanced 12% to $163 million compared to $146 million in Q1 FY17, primarily driven by an acquisition operating income of $26 million; a decrease in selling, general, and administrative expenses (SG&A) from cost reductions of $11 million; and a decrease in depreciation and amortization of $7 million.

Berry reported a net income of $163 million, or $1.20 per diluted share, compared to $51 million, or $0.40 per diluted share, in Q1 FY17. The Company’s adjusted net income per diluted share surged 34% to $0.67 compared to $0.50 in the year earlier same quarter. Berry’s earnings beat Wall Street’s estimates of $0.65 per share.

Segment Results

During Q1 FY18, Berry’s Engineered Materials segment’s net sales soared 69% to $648 million compared to $383 million in Q1 FY17, primarily due to acquisition net sales of $267 million and an increase in selling prices of $6 million due to the pass through of higher resin prices. The segment’s operating income surged 66% to $88 million versus $53 million in the prior year’s comparable quarter, primarily attributed to an acquisition operating income of $26 million; a favorable improvement in price cost spread of $4 million; and a decrease in depreciation and amortization expenses of $4 million.

For Q1 FY18, Berry’s Health, Hygiene, and Specialties segment’s net sales grew 1% to $577 million compared to $570 million in Q1 FY17, primarily attributed to a favorable impact from currency translation of $16 million, partially offset by a base volume decline of 1%. The segment’s operating income fell 37% to $37 million versus $59 million in the year earlier corresponding quarter, due to a negative impact of $17 million from under recovery of cost of goods sold related to inflation and market pressure in South America; an increase in business integration and restructuring costs of $6 million, and a slight increase in depreciation and amortization expenses.

Berry’s Consumer Packaging segment’s net sales were marginally higher at $551 million in Q1 FY18 compared to $549 million in Q1 FY17, principally attributed to an impact from selling price increases of $8 million due to the pass through of higher resin prices, partially offset by a base volume decline of 1%. The segment’s operating income rose 12% to $38 million versus $34 million in the year ago same period, due to a decrease in depreciation and amortization expenses of $5 million, and a decrease in SG&A of $5 million.

Cash Flow and Capital Structure

Berry’s cash flow from operating activities was $153 million and $985 million for Q1 FY18. The Company’s adjusted free cash flow was $25 million for the reported quarter. Berry’s total debt less cash and cash equivalents was $5.31 billion at the end of the reported quarter.

Outlook

For the full fiscal year 2018, Berry raised its forecasts for cash flow from operations and adjusted free cash flow to $1.01 billion and $630 million, respectively. Additionally, the Company’s capital spending and cash interest costs are forecasted to be $340 million and $250 million, respectively.

Stock Performance Snapshot

March 06, 2018 – At Tuesday’s closing bell, Berry Global Group’s stock advanced 2.24%, ending the trading session at $54.80.

Volume traded for the day: 1.34 million shares, which was above the 3-month average volume of 1.03 million shares.

Stock performance in the past twelve-month period – up 8.82%

After yesterday’s close, Berry Global Group’s market cap was at $7.18 billion.

Price to Earnings (P/E) ratio was at 18.49.

The stock is part of the Consumer Goods sector, categorized under the Packaging & Containers industry. This sector was up 0.3% at the end of the session.

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