USA – Plastic packaging manufacturer Berry Global has reported a net income of US$59 million in the first quarter (Q1) of financial year 2024 (FY24), down by 44% from US$106 million in the same period in FY23.

During the quarter ending 30 December 2023, the company’s net sales also dropped by 6.7% to US$2.85 billion, from US$3.06 billion in Q1 FY23.

This decline in net sales was primarily attributed to lower selling prices and a 3% volume decline, which was slightly offset by favorable foreign currency changes.

Berry recorded diluted earnings per share (EPS) of US$0.50 in Q1 FY24, declining from US$0.85 in the prior year’s same quarter.

The company’s operating income for the latest quarter was US$157 million, marking a 25% decline from US$210 million in the same period of FY23.

This decrease in operating income is largely due to a US$20 million unfavorable impact from the price cost spread associated with the timing of resin cost pass-throughs and volume decline.

However, the company has reaffirmed its FY24 guidance, with adjusted EPS expected to be in the range of US$7.35 – US$7.85 and a cash flow from operations range of US$1.35 billion – US$1.45 billion.

Berry also anticipates free cash flow between US$800 million and US$900 million for FY24.

Berry CEO Kevin Kwilinski said, “Berry delivered a solid first-quarter result, in line with our expectations, as our teams executed well despite a challenging macro demand environment.

“Free cash flow was ahead of last year’s first quarter, putting us on track to deliver against our fiscal 2024 guidance, which we reaffirmed today.”

Amcor GAAP net income declines to US$286M in Q1 FY24

Meanwhile, Australia packaging company, Amcor has registered a generally accepted accounting principles (GAAP) net income of US$286 million during the first half (H1) of financial year 2024 (FY24), compared to US$691 million in H1 FY23.

For the six months ending 31 December 2023, GAAP diluted earnings per share was 19.8 cents per share (cps) versus 46.1cps in H1 last year.

Adjusted non-GAAP net income stood at US$453 million, representing a 17% decline on a reported basis from US$548 million in H1 FY23.

Net sales in H1 FY24 declined by 9% on a reported basis to US$6.69 billion from US$7.35 billion during the same period a year ago.

This decline in net sales has been attributed to an unfavorable impact in terms of items affecting comparability and of the pass-through of lower raw material costs, offset by a favorable impact of foreign exchange rate movements.

Amcor Group’s gross profit for the reported period in FY24 was US$1.26 billion, compared to US$1.33 billion in the prior year’s H1.

The company’s adjusted non-GAAP earnings before interest, taxes, depreciation, and amortization totaled US$913 million, showcasing a decrease of 8% on a reported basis from US$994 million a year ago.

Amcor CEO Ron Delia said, “Solid fiscal 2024 second-quarter and first-half execution led to adjusted free cash flow ahead of last year and adjusted earnings per share modestly above our expectations set out in October, despite challenging market conditions.

“This leaves us on track to achieve our full-year earnings and cash flow guidance for the 2024 fiscal year, which we are reaffirming today.”

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