- Berry Global Group Inc (NYSE: BERY) reported second-quarter FY22 sales growth of 12% year-on-year to $3.78 billion, beating the consensus of $3.70 billion.
- The net sales growth is primarily attributed to increased selling prices of $576 million due to the pass-through of inflation.
- Organic volumes were down 2% in the quarter, primarily due to supply chain disruptions and the moderation of advantaged products related to the COVID-19 pandemic.
- Selling, general and administrative expenses declined 5.9%. The operating margin was 9%, and operating income for the quarter rose 2.4% to $341 million.
- Adjusted EPS of $1.93 beat the analyst consensus of $1.77.
- The operating EBITDA declined 5.9% to $555 million in Q2.
- The company held $622 million in cash and equivalents as of April 2, 2022.
- Outlook: Berry reaffirmed its FY22 adjusted EPS outlook of $7.20 - $7.70, against the consensus of $7.23. It targets flat to 1% organic volume growth for FY22.
- Price Action: BERY shares are trading lower by 3.75% at $57.52 on the last check Thursday.
Read at Benzinga