Breaking Down Berry Global Group, Inc. (BERY) Financial Health: Key Insights for Investors

Are you keeping a close watch on the financial performance of Berry Global Group, Inc. (BERY)? With a recent Q1 2025 report showing net sales at $2.4 billion and operating income of $152 million, alongside strategic moves like a merger agreement with Amcor expected to finalize in mid-2025, it's crucial to understand the full picture. But how do these figures stack up against their debt, which totaled $6.051 billion in fiscal year 2023, and how do profitability metrics such as a gross profit of $2.1 billion for fiscal year 2023 impact investment decisions? Dive in to uncover key insights into Berry Global's financial health and what it means for investors like you.

Berry Global Group, Inc. (BERY) Revenue Analysis

Understanding Berry Global Group, Inc.'s (BERY) financial health requires a close examination of its revenue streams. A detailed look into where the company's revenue comes from, how it has grown (or not) over the years, and the different segments contributing to the overall revenue picture is essential for investors.

Berry Global Group, Inc. operates through four main divisions. Here's a breakdown:

• Consumer Packaging—North America: Focuses on containers, foodservice items, closures, overcaps, bottles, prescription vials, and tubes.
• Consumer Packaging—International: Includes containers, bottles, closures, dispensing systems, and pharmaceutical packaging.
• Engineered Materials: Produces tapes, diaper components, films, and specialty materials.
• Health, Hygiene, and Specialties: Specializes in healthcare, hygiene, and specialty applications.

For the fiscal year 2024, Berry Global reported net sales of $12.27 billion. This represents a decrease of 6.7% compared to the $13.15 billion reported in fiscal year 2023.

Here's a more detailed look at the revenue contributions from each segment for fiscal year 2024:

• Consumer Packaging North America: Net sales were $4,615 million in fiscal year 2024, a decrease from $5,118 million in fiscal year 2023.
• Consumer Packaging International: Net sales totaled $3,249 million in fiscal year 2024, down from $3,454 million in fiscal year 2023.
• Engineered Materials: Recorded net sales of $2,586 million in fiscal year 2024, compared to $2,778 million in fiscal year 2023.
• Health, Hygiene & Specialties: Net sales amounted to $1,817 million in fiscal year 2024, a decrease from $1,867 million in fiscal year 2023.

Analyzing year-over-year revenue trends provides crucial insights into Berry Global's performance. The 6.7% decrease in net sales from fiscal year 2023 to fiscal year 2024 indicates significant shifts within the company’s operational landscape. Several factors contributed to this decline, including volume decreases and price declines, which reflect broader market dynamics and specific challenges within each segment.

Here's a table summarizing the net sales for each segment over the past two fiscal years:

A comprehensive understanding of Berry Global's revenue streams is incomplete without considering the company's guiding principles. For further insights, refer to: Mission Statement, Vision, & Core Values of Berry Global Group, Inc. (BERY). This will provide a broader perspective on their strategic focus and operational objectives.

Berry Global Group, Inc. (BERY) Profitability Metrics

Understanding Berry Global Group, Inc.'s profitability involves examining several key metrics that reveal how efficiently the company generates profit from its revenue. These metrics include gross profit, operating profit, and net profit margins, which provide insights into the company’s financial health and operational effectiveness.

Here's an analysis of Berry Global Group, Inc.'s profitability, incorporating available data:

• Gross Profit: Gross profit is the revenue a company has left after deducting the cost of goods sold (COGS). It indicates how efficiently a company manages its production costs.
• Operating Profit: Operating profit is calculated by deducting operating expenses from gross profit. This metric reflects the profit earned from the company's core business operations before interest and taxes.
• Net Profit: Net profit is what remains after all expenses, including interest, taxes, and other one-time charges, are deducted from total revenue.

Analyzing the trends in these profitability metrics over time helps to understand whether Berry Global Group, Inc. is improving its efficiency and profitability. Comparing these ratios with industry averages provides context and helps to benchmark the company's performance against its peers.

For example, a higher gross margin compared to the industry average could indicate that Berry Global Group, Inc. has a competitive advantage in managing its production costs or pricing its products. Similarly, a higher net profit margin suggests better overall financial management.

The numbers for the fiscal year 2024 tell an interesting story about Berry Global Group, Inc.'s financial performance. The company reported net sales of $12.16 billion. However, it also faced a net loss of $45 million, which translates to a loss of $0.37 per diluted share. When we look at the adjusted figures, the picture improves. The adjusted net income was $542 million, or $4.46 per diluted share. These adjustments usually account for one-time events or accounting changes that can skew the raw numbers.

Here’s a snapshot of some key financial figures for fiscal year 2024:

Operational efficiency is critical for maintaining and improving profitability. Cost management strategies, such as streamlining production processes, negotiating better terms with suppliers, and controlling overhead expenses, play a significant role. The trend in gross margin indicates how effectively the company is managing its production costs relative to its revenue.

In summary, Berry Global Group, Inc.'s profitability can be assessed through a detailed examination of its gross, operating, and net profit margins, their trends over time, and a comparison with industry benchmarks. Additionally, analyzing operational efficiency and cost management practices provides a comprehensive view of the company's financial health. For more detailed insights, you can explore: Breaking Down Berry Global Group, Inc. (BERY) Financial Health: Key Insights for Investors

Berry Global Group, Inc. (BERY) Debt vs. Equity Structure

Understanding how Berry Global Group, Inc. (BERY) finances its operations and growth is crucial for investors. The balance between debt and equity reveals insights into the company's financial strategy and risk profile. Here's a breakdown of Berry Global's debt levels, debt-to-equity ratio, and recent financing activities.

Berry Global Group, Inc. (BERY) relies on a mix of debt and equity to fund its operations. As of the end of fiscal year 2024, Berry Global's total debt stood at approximately $9.99 billion. This includes both:

• Long-term debt: $9.81 billion, representing the bulk of the company's obligations.
• Short-term debt: $179 million, covering liabilities due within one year.

The debt-to-equity ratio is a key metric for assessing a company's financial leverage. As of 2024, Berry Global's debt-to-equity ratio is approximately 7.59. This ratio indicates the proportion of debt used to finance assets relative to equity. A high ratio suggests a more aggressive financing strategy and potentially higher financial risk.

Here is a table summarizing Berry Global Group, Inc. (BERY) debt structure:

In recent years, Berry Global has been actively managing its debt through issuances, refinancing, and strategic repayments. For instance, in April 2024, Berry Global completed an offering of $750 million aggregate principal amount of 6.875% senior notes due 2029 and $500 million aggregate principal amount of 7.875% senior notes due 2032. The company intended to use the net proceeds from the offering, together with cash on hand, to redeem all of its outstanding 3.875% senior secured notes due 2026 and to pay related fees and expenses.

Credit ratings provide an independent assessment of a company's ability to meet its financial obligations. Ratings agencies like Standard & Poor's and Moody's Investors Service assign ratings based on their evaluation of creditworthiness. As of November 2024:

• Standard & Poor’s ratings for Berry Global is BB.
• Moody’s ratings for Berry Global is Ba3.

These ratings reflect the agencies' current view of Berry Global's credit risk, taking into account factors such as debt levels, financial performance, and industry conditions.

Berry Global strategically balances debt financing with equity funding to optimize its capital structure. While debt can provide leverage and potentially enhance returns, it also introduces financial risk. Equity, on the other hand, represents ownership and provides a cushion against financial distress. The company's approach involves:

• Issuing new equity shares to raise capital for acquisitions or investments.
• Using free cash flow to repay outstanding debt and reduce leverage.
• Maintaining a target capital structure that aligns with its long-term strategic goals.

Careful management of debt and equity is essential for Berry Global to sustain growth, manage risk, and deliver value to its shareholders. To know more about the company, check this link: Mission Statement, Vision, & Core Values of Berry Global Group, Inc. (BERY).

Berry Global Group, Inc. (BERY) Liquidity and Solvency

Liquidity and solvency are crucial indicators of a company's financial health, revealing its ability to meet short-term obligations and sustain long-term operations. For Berry Global Group, Inc. (BERY), assessing these metrics provides valuable insights into its financial stability and risk profile.

Assessing Berry Global Group, Inc.'s Liquidity:

Analyzing Berry Global Group, Inc.'s liquidity involves examining several key ratios and trends:

• Current Ratio: The current ratio measures a company's ability to pay its short-term liabilities with its short-term assets. A ratio of 1 or higher generally indicates good liquidity.
• Quick Ratio (Acid-Test Ratio): The quick ratio is a more conservative measure of liquidity, as it excludes inventories from current assets. This ratio provides a better indication of a company's ability to meet its short-term obligations without relying on the sale of inventories.

Analysis of Working Capital Trends:

Working capital, calculated as current assets minus current liabilities, is a vital measure of a company's operational efficiency and short-term financial health. Monitoring trends in working capital can reveal whether Berry Global Group, Inc. is effectively managing its short-term assets and liabilities. A positive and stable working capital balance typically indicates that the company has sufficient resources to cover its immediate obligations.

Cash Flow Statements Overview:

Cash flow statements provide a comprehensive view of a company's cash inflows and outflows, categorized into operating, investing, and financing activities. Analyzing these cash flow trends can offer insights into Berry Global Group, Inc.'s liquidity position:

• Operating Cash Flow: Positive operating cash flow indicates that the company is generating sufficient cash from its core business operations to cover its expenses and invest in future growth.
• Investing Cash Flow: This section includes cash flows related to the purchase and sale of long-term assets, such as property, plant, and equipment (PP&E).
• Financing Cash Flow: Financing activities involve cash flows related to debt, equity, and dividends.

Potential Liquidity Concerns or Strengths:

Based on the analysis of liquidity ratios, working capital trends, and cash flow statements, potential liquidity concerns or strengths can be identified. For instance, a declining current ratio or negative operating cash flow might signal potential liquidity issues, while a strong and increasing current ratio, coupled with positive operating cash flow, would indicate a robust liquidity position.

For further insights into Berry Global Group, Inc.'s investor profile, consider exploring: Exploring Berry Global Group, Inc. (BERY) Investor Profile: Who’s Buying and Why?

Berry Global Group, Inc. (BERY) Valuation Analysis

Assessing whether Berry Global Group, Inc. (BERY) is overvalued or undervalued involves analyzing several key financial metrics and market indicators. These include price-to-earnings (P/E), price-to-book (P/B), and enterprise value-to-EBITDA (EV/EBITDA) ratios, stock price trends, dividend yield and payout ratios (if applicable), and analyst consensus.

As of April 2025, comprehensive real-time data for these metrics reflecting the complete fiscal year 2024 is not yet fully compiled. However, we can examine recent trends and available data to provide an informed perspective.

Valuation Ratios:

• Price-to-Earnings (P/E): The P/E ratio indicates how much investors are willing to pay for each dollar of Berry Global's earnings. A higher P/E ratio might suggest overvaluation, while a lower one could indicate undervaluation, relative to industry peers or Berry Global's historical averages.
• Price-to-Book (P/B): The P/B ratio compares Berry Global's market capitalization to its book value of equity. A lower P/B ratio may suggest the stock is undervalued.
• Enterprise Value-to-EBITDA (EV/EBITDA): This ratio compares the company's enterprise value (market cap plus debt, minus cash) to its earnings before interest, taxes, depreciation, and amortization (EBITDA). It’s often used to assess valuation, with lower ratios potentially indicating undervaluation.

Stock Price Trends:

Analyzing Berry Global's stock price trends over the past 12 months (or longer) provides insights into market sentiment and investor confidence. Factors influencing stock price include earnings reports, industry trends, and broader economic conditions. Significant price appreciation could suggest growing investor optimism, while a declining price might reflect concerns about the company's performance or outlook.

Dividend Yield and Payout Ratios:

As of the latest data, Berry Global does not currently offer a dividend. Therefore, dividend yield and payout ratios are not applicable to its valuation analysis.

Analyst Consensus:

Analyst consensus on Berry Global's stock valuation offers a summarized view of professional opinions. Ratings typically range from 'buy' to 'hold' to 'sell,' reflecting analysts' expectations for the stock's future performance. It's important to consider the source and track record of the analysts providing these ratings.

To make informed investment decisions, consider the following:

• Compare Berry Global's valuation ratios (P/E, P/B, EV/EBITDA) to those of its industry peers to gauge relative valuation.
• Examine historical stock price trends and identify any significant patterns or events that may have influenced the stock's performance.
• Stay informed about analyst ratings and read their research reports to understand the rationale behind their recommendations.
• Consider the company's financial health, including revenue growth, profitability, and debt levels, as these factors can impact its valuation.

For more insights into Berry Global's strategic direction, you might find this resource helpful: Mission Statement, Vision, & Core Values of Berry Global Group, Inc. (BERY).

Below is a hypothetical table illustrating how these valuation metrics might be organized and compared. Please note that the data is for illustrative purposes only and does not reflect actual real-time values.

Disclaimer: The data provided is for informational purposes only and should not be considered financial advice. Investment decisions should be based on thorough research and consultation with a qualified financial advisor.

Berry Global Group, Inc. (BERY) Risk Factors

Assessing the financial health of Berry Global Group, Inc. (BERY) requires a close look at the various risks that could impact its performance. These risks span internal operational challenges and external market dynamics. Understanding these factors is crucial for investors aiming to make informed decisions. For further insights, explore: Breaking Down Berry Global Group, Inc. (BERY) Financial Health: Key Insights for Investors

Here's an overview of the key risks:

• Industry Competition: Berry Global faces intense competition in the plastic packaging market. Competitors range from large multinational corporations to smaller, regional players. This competition can pressure pricing and margins, affecting profitability.
• Regulatory Changes: Environmental regulations regarding plastics are evolving rapidly. Increased focus on sustainability and potential bans on certain types of plastics could necessitate significant investments in new materials and technologies, increasing costs.
• Market Conditions: Economic downturns can reduce demand for packaging materials as consumer spending decreases. Fluctuations in raw material prices, such as resin, also impact production costs and profitability.

Recent earnings reports and filings highlight several operational, financial, and strategic risks:

• Operational Risks: Disruptions in the supply chain, whether due to geopolitical events, natural disasters, or other unforeseen circumstances, can impact production and distribution capabilities.
• Financial Risks: Berry Global carries a significant amount of debt. High debt levels can increase vulnerability to interest rate hikes and limit financial flexibility for investments in growth opportunities.
• Strategic Risks: Failure to innovate and adapt to changing market demands, particularly regarding sustainable packaging solutions, could erode market share.

Mitigation strategies and plans often include:

• Diversification: Expanding into different types of packaging and end-markets to reduce reliance on specific sectors.
• Innovation: Investing in research and development to create more sustainable and recyclable packaging solutions.
• Efficiency Improvements: Implementing operational efficiencies to reduce costs and improve margins.
• Financial Management: Actively managing debt levels and refinancing when opportunities arise to lower interest expenses.

For example, Berry Global's fiscal year 2024 activities included a focus on reducing net debt by approximately $463 million. However, the company still faces risks related to its overall debt, which stood at $9.4 billion as of September 30, 2024. Interest expenses for the fiscal year 2024 totaled $681 million, underscoring the financial strain from its debt obligations.

A summary of Berry Global’s financial risk factors based on the 2024 fiscal year data is shown below:

Understanding and monitoring these risks is essential for assessing Berry Global's financial health and investment potential. Investors should consider these factors when evaluating the company's stock and making investment decisions.

Berry Global Group, Inc. (BERY) Growth Opportunities

Berry Global Group, Inc. (BERY) is focusing on several key strategies to drive future growth. These include product innovations, strategic market expansions, and acquisitions that complement its existing portfolio.

Key growth drivers for Berry Global include:

• Product Innovations: Berry Global consistently invests in research and development to create innovative packaging solutions.
• Market Expansions: Berry Global strategically expands its presence in high-growth markets, both geographically and within specific industries.
• Acquisitions: Berry Global has a track record of acquiring companies that enhance its product offerings, expand its geographic reach, or provide access to new technologies.

While specific future revenue growth projections and earnings estimates can fluctuate based on market conditions, analysts' estimates provide insight into potential performance. For example, information found on Yahoo Finance indicates revenue estimates for the current year (ending September 2024) at $12.03 billion. Revenue estimates for the next year (ending September 2025) are projected to be around $11.95 billion. These figures provide a general expectation, though they are subject to change based on company performance and broader economic factors.

Strategic initiatives and partnerships are also crucial for Berry Global's growth. These may include:

• Collaborations with major brands to develop sustainable packaging solutions.
• Investments in new technologies to improve manufacturing efficiency and reduce environmental impact.
• Partnerships with recycling companies to enhance the circularity of its products.

Berry Global possesses several competitive advantages that position it favorably for growth:

• Scale: As one of the largest plastic packaging companies globally, Berry Global benefits from economies of scale, allowing it to offer competitive pricing and invest in innovation.
• Diversified Product Portfolio: Berry Global serves a wide range of end markets, reducing its reliance on any single industry or customer.
• Global Footprint: With operations in numerous countries, Berry Global can serve multinational customers and capitalize on growth opportunities in different regions.
• Focus on Sustainability: Berry Global is increasingly focused on developing sustainable packaging solutions, which is a key differentiator in a market that is increasingly concerned about environmental impact.

To gain a better understanding of Berry Global's mission, vision, and core values, you can refer to Mission Statement, Vision, & Core Values of Berry Global Group, Inc. (BERY).

The following table shows a summary of estimates and actuals for Berry Global Group Inc. (BERY):