Berry Global Reports Financial Results – Nonwovens Industry Magazine
Net sales in the Health, Hygiene and Specialties division reached $818 million, compared to $740 million in the first quarter of fiscal 2021. The growth in net sales was mainly due to an increase in selling prices of $143 million in due to the impact of inflation, partially offset by a decrease of $36 million from additional shipping days in the prior year quarter and a volume decline of 4%. The decline in volumes (-4%) is mainly attributed to supply chain disruptions and moderating demand for advantaged products related to the moderation of the response to the Covid-19 pandemic.
Berry President and CEO Tom Salmon said, “For the first fiscal quarter, we recorded revenue of $3.6 billion, a 14% increase over last year. previous year, as the underlying demand for our products remained resilient. We delivered two-year organic volume growth of 4% over fiscal first quarter 2020 pre-pandemic levels, led by our Healthcare, Personal Care & Specialties and Consumer Packaging segments, primarily driven by market growth supported by our organic investments. Organic volume and cash flow both ended in line with our expectations, but could have been stronger had we seen improvements in supply chains. On a two-year basis, adjusted earnings per share increased by 33%. These strong results over the past two years are driven by our targeted strategy of organic investment in each of our businesses despite significant increases in the cost of resin, our main raw material, as well as inflation in other raw materials, freight and labor, compounded by supply chain challenges. This strategy has generated organic volume growth of 2% in fiscal 2020, 4% in fiscal 2021 and we expect another 2% in fiscal 2022. My sincere thanks go to to our 47,000 employees who have achieved these results over the past difficult and unpredictable years. .”