Berry Global Q4 Earnings Top Estimates; Organic Volumes Decline 1%

Berry Global Group Inc BERY reported fourth-quarter FY21 sales growth of 22% year-on-year, to $3.67 billion, beating the analyst consensus of $3.47 billion.
Organic volumes were down 1% in the quarter primarily due to the negative impact from supply chain and labor challenges.
Consumer packaging revenue in North America rose 31% Y/Y, and International grew 12%. Net sales from Health, Hygiene & Specialties climbed 21%, and Engineered materials jumped 30%.
Selling, general and administrative expenses declined 9.1%.
The operating margin was 8.5%, and operating income for the quarter fell 10.6% to $312 million.
Adjusted EPS of $1.55 beat the analyst consensus of $1.52.
The company held $1.1 billion in cash and equivalents as of October 2, 2021. Cash flow from operations for the year totaled $1.6 billion, with a free cash flow of $904 million.
Outlook: Berry sees FY22 adjusted EPS of $7.20 - $7.70, above the consensus of $6.35. It targets 2% organic volume growth for FY22 versus 4% growth recorded in FY21.
Price Action: BERY shares are trading lower by 7.86% at $64.72 on the last check Thursday.

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