11.19.24
Berry Global’s net sales in the fourth quarter of 2024 increased 3% to $3.2 billion driven by higher selling prices and organic volume growth of 1%, partially offset by the impact of completed divestitures. All three remaining segments, excluding Berry’s Health, Hygiene and Specialties Global Nonwovens and Films Business (HHNF), delivered positive volume growth.
In the Health, Hygiene & Specialties segment, net sales increased by 2% totaling $642 million. The increase was primarily due to higher selling prices partially offset by an unfavorable impact from foreign currency changes.
Kevin Kwilinski, Berry’s CEO, stated, “With the successful completion of the HHNF transaction, Berry is now a leading pure-play supplier of sustainable global packaging solutions. This intentional emphasis on fast-moving consumer goods will result in even more predictable earnings growth and cash generation, providing stability and resilience to our business as we continue to optimize our portfolio.
“As a result of our team’s outstanding performance we ended fiscal 2024 on a strong note, achieving 2% organic volume growth, excluding HHNF, in our underlying businesses and over 6% earnings per share growth in the second half. We also reached our leverage goal of 3.5x, the lowest in the company’s history. Our lean transformation and customer excellence initiatives contributed to positive volumes again this quarter, as we continue to navigate a challenging consumer environment.
“Looking ahead to fiscal 2025, we anticipate continued low-single digit volume growth as demonstrated in the second half and the same strong adjusted free cash flow we have consistently delivered. We are confident in the strength and resilience of our portfolio, as reflected by the Board’s decision to raise our dividend by nearly 13% following last year’s 10% increase. As we move forward we intend to deliver enhanced value to our shareholders by continuing to focus on three key objectives: accelerating organic growth, increasing margins from improved operations, and deleveraging.”
In the Health, Hygiene & Specialties segment, net sales increased by 2% totaling $642 million. The increase was primarily due to higher selling prices partially offset by an unfavorable impact from foreign currency changes.
Kevin Kwilinski, Berry’s CEO, stated, “With the successful completion of the HHNF transaction, Berry is now a leading pure-play supplier of sustainable global packaging solutions. This intentional emphasis on fast-moving consumer goods will result in even more predictable earnings growth and cash generation, providing stability and resilience to our business as we continue to optimize our portfolio.
“As a result of our team’s outstanding performance we ended fiscal 2024 on a strong note, achieving 2% organic volume growth, excluding HHNF, in our underlying businesses and over 6% earnings per share growth in the second half. We also reached our leverage goal of 3.5x, the lowest in the company’s history. Our lean transformation and customer excellence initiatives contributed to positive volumes again this quarter, as we continue to navigate a challenging consumer environment.
“Looking ahead to fiscal 2025, we anticipate continued low-single digit volume growth as demonstrated in the second half and the same strong adjusted free cash flow we have consistently delivered. We are confident in the strength and resilience of our portfolio, as reflected by the Board’s decision to raise our dividend by nearly 13% following last year’s 10% increase. As we move forward we intend to deliver enhanced value to our shareholders by continuing to focus on three key objectives: accelerating organic growth, increasing margins from improved operations, and deleveraging.”
