Berry Global Group (BERY) Q1 2025 earnings summary

Executive summary

• Entered a definitive all-stock merger agreement with Amcor, with Berry shareholders to receive 7.25 Amcor shares per Berry share, creating a global packaging leader with $24B in combined revenue and $4.2B adjusted EBITDA; transaction subject to regulatory and shareholder approvals.

• Completed the spin-off of the HHNF business (now Magnera), presented as discontinued operations, and closed the sale of the Tapes business in early February 2025.

• Operations reorganized into three segments: Consumer Packaging International, Consumer Packaging North America, and Flexibles.

• Achieved strong 1Q25 results: 2% organic volume growth, adjusted EPS up 5% year-over-year, and adjusted EBITDA up 4% year-over-year.

• Focused on streamlining operations and targeting fast-moving consumer goods for more predictable growth.

Financial highlights

• 1Q25 net sales grew 2% year-over-year to $2.39B, driven by 2% organic volume growth and higher prices.

• Operating EBITDA rose 4% to $378M; adjusted EPS increased 5% to $1.09.

• Operating income from continuing operations was $152M, down from $165M due to higher integration costs.

• Free cash flow for the quarter was negative $506M, reflecting outflows from the HHNF spin-off and merger costs.

• Cash and cash equivalents at quarter-end were $1,181M.

Outlook and guidance

• FY25 adjusted EPS guidance reaffirmed at $6.10–$6.60; operating EBITDA expected at $1.73B–$1.79B.

• Free cash flow guidance for FY25 is $600–$700M; cash flow from operations expected at $1.125–$1.225B; capital expenditures projected at $525M.

• Long-term targets: 10–15% TSR growth, 4–6% EBITDA growth, 7–12% adjusted EPS growth, and leverage ratio of 2.5x–3.5x.

• Management expects continued macroeconomic challenges but maintains a positive long-term outlook.