Berry Global Group (BERY) Tops Q2 EPS by 30c

Berry Global Group (NYSE: BERY) reported Q2 EPS of $1.59, $0.30 better than the analyst estimate of $1.29. Revenue for the quarter came in at $3.37 billion versus the consensus estimate of $3.19 billion.

Fiscal 2021 Guidance:

Given our continued strength through the first half of the year and stable demand outlook across our business, we are increasing our organic volume growth assumption for fiscal 2021 to 5 percent. This includes low single digit growth in the back half of this fiscal year, building on last year’s strong performance, and all supported by our robust and growing pipeline, increased level of capital expenditures, and the positive trends and momentum we are seeing in each of our businesses. Given the continued strength in our pipeline, we are raising our capital expenditures spending expectation by $50 million this year to support incremental growth projects. Additionally we are increasing our operating EBITDA guidance by $50 million from the mid-point of our previous guidance provided in February to now $2.25 billion. We have included a negative impact from inflation and the associated timing lag in passing through inflationary costs. We expect the majority of the impact from the recent unprecedented increases in resin prices in the United States, to impact our results in the June 2021 quarter. Though, we expect this lag will be largely offset in the June quarter from continued favorable product mix. The guidance also assumes that both of these factors dissipate in the September quarter. As a result, we expect Operating EBITDA in the back-half of the year to be split relatively evenly between the June and September quarters and will be similar with the second half prior year results when adjusted for our recent divestitures and the COVID-19 related mix benefits. We are proud of the continued strong execution by our team as the unprecedented resin inflation experienced in fiscal 2021 has been more than offset by volume growth and productivity. Free cash flow will remain in the range of $875 to $975 million. The range of free cash flow includes $1.575 to $1.675 billion of cash flow from operations, partially offset by capital expenditures of $700 million. We also continue to anticipate further strengthening our balance sheet and expect to be in our targeted range by the end of fiscal 2021

For earnings history and earnings-related data on Berry Global Group (BERY) click here.

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