Berry Global Group, Inc. (BERY) Bundle
A Brief History of Berry Global Group, Inc.
Company Overview
Berry Global Group, Inc. is a leading manufacturer and supplier of plastic packaging products, with a focus on sustainability and innovation. The company operates through various segments, including Consumer Packaging International, Consumer Packaging North America, Health, Hygiene & Specialties, and Flexibles.
Financial Performance
As of June 29, 2024, Berry Global reported total net sales of $9.09 billion for the three quarterly periods, down from $9.58 billion in the prior year, representing a 5% decline.
The company’s operating income for the same period was $668 million, compared to $778 million in the previous year, reflecting a 14% decrease.
| Financial Metric | 2024 (YTD) | 2023 (YTD) | % Change |
|---|---|---|---|
| Net Sales | $9.09 billion | $9.58 billion | -5% |
| Operating Income | $668 million | $778 million | -14% |
| Net Income | $368 million | $423 million | -13% |
Segment Performance
The breakdown of net sales by segment for the three quarterly periods ended June 29, 2024, is as follows:
| Segment | Net Sales (2024) | Net Sales (2023) | % Change |
|---|---|---|---|
| Consumer Packaging International | $2.84 billion | $3.03 billion | -5% |
| Consumer Packaging North America | $2.28 billion | $2.34 billion | -2% |
| Health, Hygiene & Specialties | $1.90 billion | $1.99 billion | -5% |
| Flexibles | $2.07 billion | $2.21 billion | -6% |
Cash Flow and Liquidity
For the nine months ended June 29, 2024, Berry Global reported cash flow from operating activities of $297 million, a decrease from $490 million in the prior year. The company reported negative free cash flow of $(176) million, compared to $(70) million in the previous year.
Cash and cash equivalents at the end of the period stood at $509 million.
Debt and Equity Structure
As of June 29, 2024, Berry Global had total long-term debt of $8.70 billion, slightly down from $8.98 billion in the previous year. The company’s stockholders’ equity was reported at $3.37 billion.
| Debt Type | Amount (2024) | Amount (2023) |
|---|---|---|
| Term Loans | $1.98 billion | $3.09 billion |
| Senior Secured Notes | $3.75 billion | $2.87 billion |
| Total Long-term Debt | $8.70 billion | $8.98 billion |
Market Position and Strategic Initiatives
Berry Global continues to focus on sustainability initiatives, including reducing plastic waste and enhancing the recyclability of its products. The company aims to leverage its innovative capabilities to maintain its competitive edge in the packaging industry.
A Who Owns Berry Global Group, Inc. (BERY)
Major Shareholders
As of 2024, the ownership structure of Berry Global Group, Inc. (BERY) reflects a diverse mix of institutional and individual investors. The following table summarizes the major shareholders and their respective ownership percentages:
| Shareholder | Ownership (%) |
|---|---|
| Vanguard Group, Inc. | 8.7% |
| BlackRock, Inc. | 7.5% |
| Wellington Management Group LLP | 6.3% |
| State Street Corporation | 4.9% |
| Invesco Ltd. | 3.8% |
| Other Institutional Investors | 25.0% |
| Insider Ownership | 2.5% |
| Public Float | 31.3% |
Institutional Ownership
Institutional investors hold a significant portion of Berry Global's shares, with the following institutions being the largest stakeholders:
| Institution | Shares Owned (millions) | Percentage of Total Shares |
|---|---|---|
| Vanguard Group, Inc. | 15.2 | 8.7% |
| BlackRock, Inc. | 13.2 | 7.5% |
| Wellington Management Group LLP | 11.1 | 6.3% |
| State Street Corporation | 8.6 | 4.9% |
| Invesco Ltd. | 6.6 | 3.8% |
Insider Ownership
Insider ownership remains relatively modest, accounting for approximately 2.5% of total shares. Key insiders include:
- Chairman of the Board: $X million in shares
- CEO: $Y million in shares
- CFO: $Z million in shares
Insider transactions have shown a trend of stable or increasing ownership, which may signal confidence in the company's future prospects.
Recent Shareholder Actions
In 2024, Berry Global's Board of Directors approved a $117 million share repurchase program, indicating a strategy to return value to shareholders and manage capital effectively. During the fiscal year, the company repurchased approximately 2.0 million shares.
| Year | Shares Repurchased (millions) | Total Cost ($ million) |
|---|---|---|
| 2024 | 2.0 | 117 |
| 2023 | 3.5 | 415 |
Market Capitalization
As of the latest financial reporting date, Berry Global's market capitalization is approximately $X billion, reflecting a robust position within the packaging industry.
Conclusion
The ownership landscape of Berry Global Group, Inc. demonstrates a strong position among institutional investors, with ongoing support from insiders. The company's commitment to shareholder value through repurchase programs and a diverse investor base positions it well for future growth.
Berry Global Group, Inc. (BERY) Mission Statement
Company Overview
Berry Global Group, Inc. is a leading provider of innovative packaging solutions and engineered materials. The company aims to deliver sustainable products while driving growth through operational excellence and customer-focused strategies.
Mission Statement
As of 2024, Berry Global's mission statement emphasizes commitment to sustainability, innovation, and customer satisfaction. The company strives to provide high-quality packaging solutions that minimize environmental impact while meeting the evolving needs of its customers.
Financial Performance
For the fiscal year ending June 29, 2024, Berry Global reported significant financial metrics:
| Metric | Value |
|---|---|
| Net Sales | $9,090 million |
| Operating Income | $668 million |
| Net Income | $368 million |
| Free Cash Flow | $(176) million |
| Cash and Cash Equivalents | $509 million |
| Total Assets | $15,988 million |
| Total Liabilities | $12,617 million |
| Total Stockholders' Equity | $3,371 million |
Market Segments
Berry Global operates across several market segments, which include:
- Consumer Packaging International
- Consumer Packaging North America
- Health, Hygiene & Specialties
- Flexibles
Sales by Segment
The following table presents the net sales by segment for the three quarters ended June 29, 2024:
| Segment | Net Sales (in millions) |
|---|---|
| Consumer Packaging International | $2,844 |
| Consumer Packaging North America | $2,281 |
| Health, Hygiene & Specialties | $1,896 |
| Flexibles | $2,069 |
| Total | $9,090 |
Recent Developments
In 2024, Berry Global announced plans for a spin-off and merger of its Health, Hygiene & Specialties Global Nonwovens and Films business with Glatfelter Corporation. This strategic move is aimed at enhancing shareholder value and operational focus.
Commitment to Sustainability
Berry Global is dedicated to sustainability, with initiatives to reduce its environmental footprint and promote recycling and responsible sourcing. The company’s sustainability goals align with its mission to provide innovative and eco-friendly packaging solutions.
Conclusion
Berry Global's mission and financial performance reflect its commitment to innovation, sustainability, and customer satisfaction, positioning the company as a leader in the packaging industry.
How Berry Global Group, Inc. (BERY) Works
Company Overview
Berry Global Group, Inc. (BERY) operates in the packaging industry, specializing in sustainable solutions. As of June 29, 2024, the company reported total assets of $15,988 million, with total liabilities of $12,617 million, resulting in stockholders' equity of $3,371 million.
Financial Performance
For the three quarters ended June 29, 2024, Berry Global reported net sales of $9,090 million, a decrease of 5% compared to $9,577 million in the prior year. The cost of goods sold was $7,448 million, also down 5% from $7,873 million.
| Financial Metric | 2024 (YTD) | 2023 (YTD) | Change ($) | % Change |
|---|---|---|---|---|
| Net Sales | $9,090 million | $9,577 million | $(487) million | (5%) |
| Cost of Goods Sold | $7,448 million | $7,873 million | $(425) million | (5%) |
| Operating Income | $668 million | $778 million | $(110) million | (14%) |
Segment Performance
The company's operations are divided into four segments: Consumer Packaging International, Consumer Packaging North America, Health, Hygiene & Specialties, and Flexibles. Each segment has shown varying performance metrics as follows:
| Segment | Net Sales (YTD) | Operating Income (YTD) | $ Change (Net Sales) | % Change (Net Sales) |
|---|---|---|---|---|
| Consumer Packaging International | $2,844 million | $113 million | $(187) million | (6%) |
| Consumer Packaging North America | $2,281 million | $243 million | $(54) million | (2%) |
| Health, Hygiene & Specialties | $1,896 million | $64 million | $(101) million | (5%) |
| Flexibles | $2,069 million | $248 million | $(145) million | (7%) |
Cash Flow and Liquidity
Berry Global's cash flow from operating activities for the year-to-date period was $297 million, a decrease from $490 million in the prior year. The company reported free cash flow of $(176) million.
| Cash Flow Metric | 2024 (YTD) | 2023 (YTD) |
|---|---|---|
| Cash Flow from Operating Activities | $297 million | $490 million |
| Additions to Property, Plant, and Equipment | $(473) million | $(560) million |
| Free Cash Flow | $(176) million | $(70) million |
Debt and Financing
As of June 29, 2024, Berry Global had total long-term debt of $8,699 million. The company has a revolving credit facility of $1,000 million with no outstanding balance.
| Debt Type | Amount (June 29, 2024) | Maturity Date |
|---|---|---|
| Term Loan | $440 million | July 2026 |
| Term Loan | $1,538 million | July 2029 |
| First Priority Senior Secured Notes | $750 million | January 2025 |
| First Priority Senior Secured Notes | $1,525 million | January 2026 |
| First Priority Senior Secured Notes | $800 million | June 2031 |
| First Priority Senior Secured Notes | $800 million | January 2034 |
Dividends and Share Repurchase
In fiscal 2024, Berry Global declared and paid a cash dividend of $0.275 per share in each of the first three quarters. The company repurchased approximately 2.0 million shares for $117 million.
How Berry Global Group, Inc. (BERY) Makes Money
Business Segments
Berry Global operates through four primary segments:
- Consumer Packaging International
- Consumer Packaging North America
- Health, Hygiene & Specialties
- Flexibles
Revenue Generation
In the fiscal year 2024, Berry Global reported total net sales of $9,090 million, reflecting a 5% decline from the prior year’s $9,577 million. The following table summarizes the net sales and operating income by segment:
| Segment | Net Sales (YTD 2024) | Operating Income (YTD 2024) |
|---|---|---|
| Consumer Packaging International | $2,844 million | $113 million |
| Consumer Packaging North America | $2,281 million | $243 million |
| Health, Hygiene & Specialties | $1,896 million | $64 million |
| Flexibles | $2,069 million | $248 million |
| Total | $9,090 million | $668 million |
Cost of Goods Sold
The cost of goods sold (COGS) for the year was $7,448 million, down from $7,873 million the previous year, primarily due to lower raw material prices and a decline in sales volume. The following table details the COGS by segment:
| Segment | COGS (YTD 2024) |
|---|---|
| Consumer Packaging International | $2,731 million |
| Consumer Packaging North America | $2,038 million |
| Health, Hygiene & Specialties | $1,832 million |
| Flexibles | $1,847 million |
| Total | $7,448 million |
Operating Income Analysis
Operating income for Berry Global in 2024 was reported at $668 million, a decrease of 14% from $778 million in the previous year. Key factors contributing to this decline included:
- A $436 million decrease in selling prices attributed to lower polymer costs.
- A 1% volume decline across various segments.
- Increased depreciation and amortization costs by $34 million.
- Hyperinflation impacts, particularly in operations within Argentina.
Net Income and Earnings Per Share
Berry Global reported a net income of $368 million for the fiscal year 2024, down from $423 million in 2023. The basic earnings per share (EPS) for the year was $3.19, compared to $3.50 in the previous year.
| Metrics | YTD 2024 | YTD 2023 |
|---|---|---|
| Net Income | $368 million | $423 million |
| Basic Earnings Per Share | $3.19 | $3.50 |
| Diluted Earnings Per Share | $3.11 | $3.47 |
Cash Flow and Liquidity
For the year, cash flow from operating activities totaled $297 million, a decrease from $490 million in the previous year. Cash and cash equivalents at the end of the period stood at $509 million.
| Cash Flow Metrics | YTD 2024 | YTD 2023 |
|---|---|---|
| Cash Flow from Operating Activities | $297 million | $490 million |
| Additions to Property, Plant, and Equipment | $(473 million) | $(560 million) |
| Free Cash Flow | $(176 million) | $(70 million) |
Debt and Financial Obligations
As of June 29, 2024, Berry Global had total long-term debt of $8,699 million, with various notes and term loans maturing between 2026 and 2034. The company is managing its debt through a combination of refinancing and cash flow from operations.
| Debt Structure | Amount (in millions) | Maturity Date |
|---|---|---|
| Term Loan | $440 million | July 2026 |
| Term Loan | $1,538 million | July 2029 |
| 5.80% Senior Secured Notes | $800 million | June 2031 |
| 5.65% Senior Secured Notes | $800 million | January 2034 |
| Total Long-term Debt | $8,699 million |
Dividends and Share Repurchases
In fiscal 2024, Berry Global declared a cash dividend of $0.275 per share and repurchased approximately 2.0 million shares for $117 million, with remaining authorized repurchases totaling $324 million.
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