Berry Global Group, Inc. BERY reported first-quarter fiscal 2025 (ended December 2024) adjusted earnings of $1.09 per share, which beat the Zacks Consensus Estimate of $1. The bottom line increased 5% year over year.

Net sales of $2.39 billion beat the consensus estimate of $2.34 billion. The top line increased 2.2% year over year, primarily driven by higher selling prices and organic volume growth of 2%.

Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.

BERY’s Segmental Discussion

Berry Global has completed the tax-free spin-off and merger of the majority of its Health, Hygiene, and Specialties segment, including the global nonwovens and films business, with Glatfelter Corporation. Following the completion of the deal and its continued focus on driving a positive product mix within the Engineered Materials segment toward higher-value products, BERY has renamed the unit Flexibles.

Consumer Packaging - International net sales amounted to $885 million (accounting for 37.2% of total sales), down 3.4% from the year-ago quarter’s figure. Our estimate for segmental sales was $743.1 million. Organic volume growth of 1% was driven by improvement in the industrial markets. Operating income of $28 million decreased 3.4% year over year.

Consumer Packaging - North America’s net sales totaled $769 million (accounting for 32.2% of total sales), up 10% year over year due to 3% growth in volumes. Our estimate for segmental sales was $602.4 million. Operating income decreased 1.7% year over year to $59 million.

Net sales from the Flexibles segment amounted to $731 million (accounting for 30.6% of total sales), which increased 1.8% year over year. Organic volume grew 1% led by recovery in the European industrial markets. Our estimate for segmental sales was $532.5 million. Operating income was $65 million, down 14.5% year over year.

Berry Global’s Costs & EBITDA

Berry Global’s cost of goods sold increased 1.4% to $2.9 billion. Selling, general and administrative expenses increased 8.3% year over year to $223 million. The company reported operating EBITDA of $378 million, up 3.8% year over year. Its operating income decreased 7.9% to $152 million.

BERY’s Balance Sheet and Cash Flow

At the end of the first quarter, Berry Global had cash and cash equivalents of $1.2 million compared with $1.1 billion at the end of fiscal 2024. Current and long-term debt totaled $8.1 billion compared with $8.3 billion at the end of fiscal 2024.

In the first three months of fiscal 2025, Berry Global used net cash of $372 million in operating activities compared with $168 million in the year-ago period. Capital expenditure totaled $134 million compared with $168 million in the prior-year period. The company reported a free cash outflow of $488 million compared with $336 million in the year-ago period.

BERY paid dividends worth $36 million in the first three months of fiscal 2025.

BERY’s Fiscal 2025 Guidance

The company has reaffirmed its fiscal 2025 guidance. Berry Global expects adjusted earnings to be in the range of $6.10-$6.60 per share (ending September 2025).

BERY expects cash flow from operations to be in the band of $1.125-$1.225 billion. It anticipates free cash flow to be in the $600-$700 million range.

BERY’s Zacks Rank

The company currently carries a Zacks Rank #4 (Sell). 

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Performance of Other Companies

Tetra Tech, Inc. TTEK reported earnings of $0.35 per share in the first quarter of fiscal 2025 (ended December 2024), which beat the Zacks Consensus Estimate of $0.34. This compares with earnings of $0.28 per share a year ago.

Tetra posted revenues of $1.2 billion for the quarter ended December 2024, surpassing the consensus estimate by 8.85%. This compares with year-ago revenues of $1.02 billion. The company topped the consensus estimate for revenues in each of the last four quarters.

Waste Management, Inc. WM reported earnings of $1.70 per share in the fourth quarter of 2024, which missed the Zacks Consensus Estimate of $1.79. This compares with earnings of $1.74 per share a year ago.

WM reported revenues of $5.89 billion for the quarter ended December 2024, surpassing the consensus estimate by 0.18%. This compares with year-ago revenues of $5.22 billion. The company topped the consensus estimate for revenues two times in the last four quarters.

Packaging Corporation of America PKG reported adjusted earnings per share of $2.47 in the fourth quarter of 2024, which missed the Zacks Consensus Estimate of $2.51 by a margin of 2%. The bottom line matched PKG’s guidance and grew 16% year over year.

Sales in the fourth quarter rose 10.7% year over year to $2.15 billion due to higher volumes and price/mix in both segments. The top line beat the consensus estimate of $2.13 billion.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Tetra Tech, Inc. (TTEK) : Free Stock Analysis Report

Waste Management, Inc. (WM) : Free Stock Analysis Report

Packaging Corporation of America (PKG) : Free Stock Analysis Report

Berry Global Group, Inc. (BERY) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research