American firm Berry posts net sales of $3,060 mn in Q1 FY23

The operating income decreased by 8 per cent to $210 million, primarily due to the impact from lower sales volumes and a $22 million unfavourable impact from foreign currency, partially offset by a $49 million favourable impact from price cost spread.

Berry’s operating EBITDA was $443 million, up 3 per cent on a comparable basis. Earnings per share was $0.85, and adjusted earnings per share was $1.30, up 11 per cent on a comparable basis, the company said in a press release.

Consumer packaging’s international division saw a decline in net sales to $936 million Q1 FY23, compared to $1,056 million in Q1 FY22, due to $65 million unfavourable impact from foreign currency, a 5 per cent volume decline, and prior year divestiture sales.

The company’s consumer packaging division in North America reported a net sales decline to $764 million Q1 FY23, compared to $852 million in Q1 FY22, primarily due to decreased selling prices of $62 million and a 3 per cent volume decline, primarily due to general market softness. On the other hand, the division saw an operating income increase, primarily due to a $34 million favourable impact from price cost spread, as a result of cost reductions and improved product mix.

The health, hygiene, and specialties division reported a net sales decline to $663 million Q1 FY23, compared to $818 million in Q1 FY22, due to decreased selling prices of $72 million, an 8 per cent volume decline, and an $18 million unfavourable impact from foreign currency changes.

The engineered materials division saw a net sales decline to $697 million Q1 FY23, compared to $847 million in Q1 FY22, primarily due to a 9 per cent volume decline, decreased selling prices of $49 million, and a $25 million unfavourable impact from foreign currency changes.

In terms of guidance for fiscal 2023, Berry Corporation expects an adjusted earnings per share range of $7.30-$7.80, with an 8 per cent expected mid-point growth versus the prior year. The company also anticipates a cash flow from operations range of $1.4-$1.5 billion, with a free cash flow range of $800-$900 million.

Fibre2Fashion News Desk (DP)