US' Berry's net sales up 2% to $2.4 bn in Q1 FY25

The operating income decrease is primarily attributed to an increase in business integration costs primarily associated with the proposed merger with Amcor. These costs were partially offset by 2 per cent organic volume growth and a $16 million favourable impact from price cost spread.

“We had a very busy quarter to start fiscal 2025, continuing our transition into a more streamlined and focused provider of consumer packaging solutions. Our recent strategic actions, including the completion of the spin-off/merger of our HHNF business, announcement of the expected combination with Amcor, and the sale of our Tapes business, mark significant milestones in our journey. These actions, combined with our commitment to innovation and sustainability, position us for sustainable long-term growth. I want to also acknowledge the hard work, dedication and focus by all of our team members around the world during these eventful times,” Kevin Kwilinski, Berry’s CEO, said.

In the consumer packaging – international segment, net sales decreased by 3 per cent compared to the prior year, coming in at $885 million. The decrease was primarily attributed to prior year divestiture sales, partially offset by 1 per cent organic volume growth and the impact of higher selling prices. The organic volume increase was primarily driven by emerging market growth and share gains offsetting a weaker demand environment in Europe. The operating income change is primarily attributed to an increase in general administrative and business integration costs, partially offset by a $15 million favourable impact from price cost spread, the company said in a press release.

“Financially, we had a strong start to fiscal 2025, delivering 2 per cent organic volume growth and a 5 per cent increase in adjusted earnings per share compared to the prior year. Our intentional focus on fast-moving consumer goods will lead to more predictable earnings growth and cash generation, providing stability and resilience to our business. We are confident that our strategic investments and operational excellence will continue to enhance value for our shareholders,” explained Kwilinski.

The net sales of consumer packaging – North America segment, increased 10 per cent to $769 million primarily driven by 4 per cent organic volume growth, along with higher selling prices and a 2 per cent benefit from acquisition sales. The volume growth was broad based and led by our food, beverage, and foodservice markets. The operating income change is primarily attributed to an increase in general administrative and business integration costs, offset by 4 per cent organic volume growth.

In the flexible segment, net sales went up by 2 per cent, reaching $731 million, primarily driven by increased selling prices and organic volume growth of 1 per cent. The organic volume growth is primarily driven by the continued recovery in European industrial markets. The operating income decrease is primarily attributed to an increase in general administrative and business integration costs, partially offset by 1 per cent organic volume growth.

“Today we are reaffirming our guidance and, looking ahead into fiscal 2025, we anticipate continued low-single digit volume growth, as demonstrated over the last three quarters, along with strong adjusted free cash flow. As we move forward, we will deliver enhanced value to our shareholders by pursuing three key strategic objectives: accelerating organic growth, increasing margins through improved operations, and deleveraging,” Kwilinski concluded.

Fibre2Fashion News Desk (RR)