First Quarter Highlights
- GAAP: Net sales of $2.9 billion; Operating income of $157
million; Earnings per share of $0.50
- Non-GAAP: Operating EBITDA of $431 million; Adjusted earnings
per share of $1.22
- Fiscal 2024 outlook: Reaffirmed adjusted EPS guidance of $7.35
- $7.85 and free cash flow of $800 - $900 million
- Announced plans for a tax-free spin-off and merger of the
majority of our HH&S segment to include its global nonwovens
and films business with Glatfelter, creating a global specialty
materials leader, in a transaction expected to be valued at $3.6
billion
Kevin Kwilinski, Berry’s CEO 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. Our global teams have executed exceptionally
well, implementing robust cost reductions and optimizing our
product mix across our businesses. This strategic focus is helping
to counter the challenges of soft market demand caused by inflation
on consumers. As volumes recover we would expect an incremental
benefit to earnings on more efficient assets. We are dedicated to
delivering long-term value for our shareholders, and remain
confident in the strength of our market positions and underlying
businesses.
Building on a solid core, we have made substantial progress on
two key areas of priority: customer focused organic growth through
superior service and product performance and world class continuous
improvement delivered through lean transformation. To this end, we
pivoted our service and quality review process to be less internal
focused and more driven by the voice of our customers and have
began adding a net promotor score integrated process to ensure
closed-loop feedback. Lean transformation is a key priority for
2024 and will become a core component of our culture going
forward.
We will continue to focus on driving long-term shareholder value
in fiscal 2024 and expect to prioritize repayment of debt, to meet
our leverage target commitment, along with returning capital to
shareholders via further share repurchases and dividend payments.
We continue to believe our shares are undervalued and our
repurchases reflect our confidence in the outlook for our business
and long-term strategy.”
Key Financials (1)
December Quarter
GAAP results
2023
2022
Net sales
$2,853
$3,060
Operating income
157
210
EPS (diluted)
0.50
0.85
December Quarter
Reported
Comparable
Adjusted non-GAAP results
2023
2022
Δ%
Δ%
Net sales
$2,853
$3,060
(7%)
(9%)
Operating EBITDA
431
443
(3%)
(6%)
Adjusted EPS (diluted)
1.22
1.30
(6%)
(9%)
(1)
Adjusted non-GAAP results exclude items not considered to be
ongoing operations. December 2023 included impacts of
hyperinflation, business integration expenses associated with our
cost reduction efforts and fees associated with our strategic
review process totaling approximately $40 million. In addition,
comparable change % excludes the impacts of foreign currency,
acquisitions, and recent divestitures. Further details related to
non-GAAP measures and reconciliations can be found under our
“Non-GAAP Financial Measures and Estimates” section and in
reconciliation tables in this release. In millions of USD, except
per share data.
Financial Results – First Quarter
2024
Consolidated Overview
The net sales decline is primarily attributed to decreased
selling prices of $189 million due to the pass through of lower
polymer costs and a 3% volume decline from continued general market
softness, partially offset by a $64 million favorable impact from
foreign currency changes.
The operating income decrease is primarily attributed to a $20
million unfavorable impact from price cost spread related to the
timing of passing through resin costs, a $16 million unfavorable
impact from the volume decline, a $15 million increase in
depreciation and amortization expense, a $15 million unfavorable
impact from hyperinflation in our Argentinian subsidiary and
increased business integration costs. These declines were partially
offset by operating income derived from acquisitions and a $10
favorable impact from foreign currency changes.
Consumer Packaging - International
The net sales decline in the Consumer Packaging International
segment is primarily attributed to decreased selling prices of $31
million and a 3% volume decline from softer consumer and industrial
demand in Europe, partially offset by a $40 million favorable
impact from foreign currency changes.
The operating income decrease is primarily attributed to an $11
million unfavorable impact from price cost spread, a $7 million
increase in depreciation and amortization expense, and an
unfavorable impact from the volume decline, partially offset by a
favorable impact from foreign currency changes.
Consumer Packaging - North America
The net sales decline in the Consumer Packaging North America
segment is primarily attributed to decreased selling prices of $45
million and a 4% volume decline from softer overall demand,
partially offset by acquisition sales of $11 million.
The operating income decrease is primarily attributed to a $6
million unfavorable impact from the volume decline and a $5 million
increase in depreciation and amortization expense, partially offset
by acquisition operating income.
Health, Hygiene, & Specialties
The net sales decline in the Health, Hygiene & Specialties
segment is primarily attributed to decreased selling prices of $64
million and a 2% volume decline from softer demand in our hygiene
and specialty markets, partially offset by a $17 million favorable
impact from foreign currency changes and improved demand in our
disinfectant markets.
The operating income decrease is primarily attributed to a $15
million unfavorable impact from price cost spread, a $15 million
unfavorable impact from hyperinflation in our Argentinian
subsidiary, and a $9 million increase in business optimization
expense related to both plant rationalizations and costs associated
with the formal process to evaluate strategic alternatives of the
segment.
Flexibles (formerly Engineered Materials)
The net sales decline in the Flexibles segment is primarily
attributed to decreased selling prices of $49 million and a 3%
volume decline from softer demand in our European industrial
markets, partially offset by a favorable impact from foreign
currency changes and volume growth in our premium protection film
products in North America.
The operating income increase is primarily attributed to an $8
million favorable impact from price cost spread.
Cash Returns to
Shareholders
Berry generates significant cash flow and is committed to
returning capital to shareholders. This annual cash flow provides
substantial capacity to simultaneously reinvest in the business for
organic growth, pay down debt, pursue bolt-on acquisitions, and
return cash to shareholders through a compelling dividend as well
as share repurchases. The Company expects to be within its leverage
target of 2.5x – 3.5x by the end of fiscal 2024, while also
returning cash to shareholders during the year, through continued
share repurchases and dividends, subject to market conditions,
available cash on hand and cash needs, overall financial condition,
and other factors considered relevant by our Board of
Directors.
Dividend and Share Repurchases
As previously announced, Berry’s Board of Directors declared a
quarterly cash dividend of $0.275 per share payable on March 15,
2024 to stockholders of record as of March 1, 2024. During the
first quarter of fiscal 2024, Berry repurchased 106,000 shares for
$7 million, leaving $435 million authorized for share repurchases
at the end of the first fiscal quarter. Berry may repurchase shares
through the open market, privately negotiated transactions or other
programs, subject to market conditions. The Company continues to
expect to make repurchases during the fiscal year while primarily
focusing on lowering our leverage. Share repurchases are subject to
market conditions, available cash on hand and cash needs, overall
financial condition, and other factors considered relevant by our
Board of Directors.
Announcement of Combination of Berry’s
Health, Hygiene and Specialties Global Nonwovens and Films Business
with Glatfelter Corporation
Today, the Company announced plans for a tax-free spin-off and
merger of the majority of its HH&S segment to include its
global nonwovens and films business with Glatfelter Corporation
(“GLT”) which will create a global leader in specialty materials.
Upon the completion of the transaction, Berry is expected to own
approximately ninety percent of the newly combined company. The
transaction is expected to value the combined company at $3.6
billion on an enterprise value basis. The transaction is subject to
certain customary closing conditions and regulatory approvals
including, but not limited to, approval by GLT shareholders, the
effective filing of related registration statements, completion of
a tax-free spin-off and receipt of certain required anti-trust
approvals.
“This announcement is the culmination of a comprehensive review
to determine the highest value alternative for Berry shareholders.
We believe these two businesses can drive significant value for
their respective stakeholders with more focused portfolios,
positioning each for greater success. Berry will now become a
pure-play leading supplier of innovative, sustainable global
packaging solutions and we believe this focus will result in an
even more predictable, stable earnings and growth profile for
Berry. This proposed transaction is a significant step in the
optimization of our portfolio and allows Berry’s management team to
be one hundred percent laser-focused on driving consistent
long-term growth with a more simplified and aligned portfolio. In
conjunction with this announcement and our continued evolution of
driving positive product mix inside our Engineered Materials
segment into higher value products, we are renaming this segment
today, to Flexibles,” stated Kevin Kwilinski, Berry’s CEO.
Fiscal Year 2024 Guidance -
Reaffirmed
(based on information available as of February 7, 2024)
- Adjusted earnings per share range of $7.35 - $7.85
- Cash flow from operations range of $1.35 - $1.45 billion; free
cash flow range of $800-$900 million
- Committed to debt reduction along with returning capital to
shareholders through share repurchases and dividends
Investor Conference Call
The Company will host a conference call today, February 7, 2024,
at 10 a.m. U.S. Eastern Time to discuss our first fiscal quarter
2024 results. We expect the call to last approximately one hour.
This call will be webcast live on Berry’s website at
https://ir.berryglobal.com/financials. A new, simplified event
registration and access provides two ways to access the call. A
replay of the webcast will be available via the same link on our
website approximately two hours after the completion of the
call.
By Telephone
Participants may register for the call here now or any time up
to and during the time of the call, and will immediately receive
the dial-in number and a unique pin to access the call. While you
may register at any time up to and during the time of the call, you
are encouraged to join the call 10 minutes prior to the start of
the event.
Via the Internet
The conference call and accompanying webcast slides will also be
broadcast live over the internet. To access the event, click on the
following link: https://ir.berryglobal.com/financials. A replay of
the webcast will be available via the same link on our website
approximately two hours after the completion of the call.
About Berry
At Berry Global Group, Inc. (NYSE: BERY), we create innovative
packaging solutions that we believe make life better for people and
the planet. We do this every day by leveraging our unmatched global
capabilities, sustainability leadership, and deep innovation
expertise to serve customers of all sizes around the world.
Harnessing the strength in our diversity and industry-leading
talent of over 40,000 global employees across more than 250
locations, we partner with customers to develop, design, and
manufacture innovative products with an eye toward the circular
economy. The challenges we solve and the innovations we pioneer
benefit our customers at every stage of their journey. For more
information, visit our website, or connect with us on LinkedIn or
X.
Non-GAAP Financial Measures and
Estimates
This press release includes non-GAAP financial measures such as
operating EBITDA, Adjusted operating income, Adjusted earnings per
share (or adjusted EPS), free cash flow, and comparable basis net
sales, comparable adjusted EPS and comparable operating EBITDA. A
reconciliation of these non-GAAP financial measures to comparable
measures determined in accordance with accounting principles
generally accepted in the United States of America (GAAP) is set
forth at the end of this press release. Information reconciling
forward-looking adjusted EPS and free cash flow is not provided
because such information is not available without unreasonable
effort due to the high variability, complexity, and low visibility
with respect to certain items, including debt refinancing activity
or other non-comparable items. These items are uncertain, depend on
various factors, and could be material to our results computed in
accordance with U.S. GAAP.
Forward Looking Statements
Statements in this release that are not historical, including
statements relating to the expected future performance of the
Company as well as estimates and statements as to the expected
timing, completion and effects of the proposed transaction between
Berry and Glatfelter, are considered “forward looking” within the
meaning of the federal securities laws and are presented pursuant
to the safe harbor provisions of the Private Securities Litigation
Reform Act of 1995. You can identify forward-looking statements
because they contain words such as “believes,” “expects,” “may,”
“will,” “should,” “would,” “could,” “seeks,” “approximately,”
“intends,” “plans,” “estimates,” “projects,” “outlook,”
“anticipates” or “looking forward,” or similar expressions that
relate to our strategy, plans, intentions, or expectations. All
statements we make relating to estimates and statements about the
benefits of the Glatfelter transaction, including future financial
and operating results, the combined company’s plans, objectives,
expectations and intentions, and other statements that are not
historical facts, as well as statements we make relating to our
estimated and projected earnings, margins, costs, expenditures,
cash flows, growth rates, and financial results or to our
expectations regarding future industry trends are forward-looking
statements. In addition, we, through our senior management, from
time to time make forward-looking public statements concerning our
expected future operations and performance and other
developments.
Our actual results may differ materially from those that we
expected due to a variety of factors, including without limitation:
(1) risks associated with our substantial indebtedness and debt
service; (2) changes in prices and availability of resin and other
raw materials and our ability to pass on changes in raw material
prices to our customers on a timely basis; (3) risks related to
acquisitions or divestitures and integration of acquired businesses
and their operations, and realization of anticipated cost savings
and synergies; (4) risks related to international business,
including transactional and translational foreign currency exchange
rate risk and the risks of compliance with applicable export
controls, sanctions, anti-corruption laws and regulations; (5)
increases in the cost of compliance with laws and regulations,
including environmental, safety, and climate change laws and
regulations; (6) labor issues, including the potential labor
shortages, shutdowns or strikes, or the failure to renew effective
bargaining agreements; (7) risks related to disruptions in the
overall global economy, persistent inflation, supply chain
disruptions, and the financial markets that may adversely impact
our business; (8) risk of catastrophic loss of one of our key
manufacturing facilities, natural disasters, and other unplanned
business interruptions; (9) risks related to weather-related events
and longer-term climate change patterns; (10) risks related to the
failure of, inadequacy of, or attacks on our information technology
systems and infrastructure; (11) risks that our restructuring
programs may entail greater implementation costs or result in lower
cost savings than anticipated; (12) risks related to future
write-offs of substantial goodwill; (13) risks of competition,
including foreign competition, in our existing and future markets;
(14) risks related to market conditions associated with our share
repurchase program; (15) risks related to market disruptions and
increased market volatility; (16) the occurrence of any event,
change or other circumstances that could give rise to the
termination of the proposed transaction; (17) the risk that
Glatfelter shareholder may not approve the transaction proposals;
(18) the risk that the necessary regulatory approvals may not be
obtained or may be obtained subject to conditions that are not
anticipated; (19) risks that any of the other closing conditions to
the proposed transaction may not be satisfied in a timely manner;
(20) risks that the anticipated tax treatment of the proposed
transaction is not obtained; (21) risks related to potential
litigation brought in connection with the proposed transaction;
(22) uncertainties as to the timing of the consummation of the
proposed transaction; (23) risks and costs related to the
implementation of the separation of the Berry Spinco., including
timing anticipated to complete the separation, any changes to the
configuration of the businesses included in the separation if
implemented; (24) the risk that the integration of the combined
companies is more difficult, time consuming or costly than
expected; (25) risks related to financial community and rating
agency perceptions of each of Berry and Glatfelter and its
business, operations, financial condition and the industry in which
they operate; (26) risks related to disruption of management time
from ongoing business operations due to the proposed merger; (27)
failure to realize the benefits expected from the proposed merger;
effects of the announcement, pendency or completion of the proposed
merger on the ability of the parties to retain customers and retain
and hire key personnel and maintain relationships with their
counterparties, and on their operating results and businesses
generally; and (28) the other factors and uncertainties discussed
in the section titled “Risk Factors” in our Annual Report on Form
10-K and subsequent filings with the Securities and Exchange
Commission (“SEC”). These risks, as well as other risks associated
with the proposed transaction, will be more fully discussed in the
proxy statement/prospectus that will be included in the
registration statements that will be filed with the SEC in
connection with the proposed transaction. We caution you that the
foregoing list of important factors may not contain all of the
material factors that are important to you. New factors may emerge
from time to time, and it is not possible for us to predict new
factors, nor can we assess the potential effect of any new factors
on us. Accordingly, readers should not place undue reliance on
those statements. All forward-looking statements are based upon
information available to us on the date hereof. All forward-looking
statements are made only as of the date hereof and we undertake no
obligation to update or revise any forward-looking statement as a
result of new information, future events or otherwise, except as
otherwise required by law.
Additional Information and Where to Find
It
This communication may be deemed to be solicitation material in
respect of the proposed transaction between Berry and Glatfelter.
In connection with the proposed transaction, Berry and Glatfelter
intend to file relevant materials with the SEC, including a
registration statement on Form S-4 by Glatfelter that will contain
a prospectus of Glatfelter and the Spinco. that also constitutes a
proxy statement of Glatfelter, and a registration statement by the
Spinco.. This communication is not a substitute for the
registration statements, proxy statement/prospectus or any other
document which Berry and/or Glatfelter may file with the SEC.
STOCKHOLDERS OF BERRY AND GLATFELTER ARE URGED TO READ ALL RELEVANT
DOCUMENTS FILED WITH THE SEC, INCLUDING THE REGISTRATION STATEMENT
AND PROXY STATEMENT/PROSPECTUS, BECAUSE THEY WILL CONTAIN IMPORTANT
INFORMATION ABOUT THE PROPOSED TRANSACTION. Investors and security
holders will be able to obtain copies of the proxy
statement/prospectus (when available) as well as other filings
containing information about Berry and Glatfelter, as well as the
Spinco., without charge, at the SEC’s website, http://www.sec.gov.
Copies of documents filed with the SEC by Berry or the Spinco. will
be made available free of charge on Berry’s investor relations
website at https://ir.berryglobal.com. Copies of documents filed
with the SEC by Glatfelter will be made available free of charge on
Glatfelter's investor relations website at
https://www.glatfelter.com/investors.
No Offer or Solicitation
This communication is for informational purposes only and is not
intended to and does not constitute an offer to sell, or the
solicitation of an offer to subscribe for or buy, or a solicitation
of any vote or approval in any jurisdiction, nor shall there be any
sale, issuance or transfer of securities in any jurisdiction in
which such offer, sale or solicitation would be unlawful, prior to
registration or qualification under the securities laws of any such
jurisdiction. No offer of securities shall be made except by means
of a prospectus meeting the requirements of Section 10 of the
Securities Act of 1933, as amended, and otherwise in accordance
with applicable law.
Participants in Solicitation
Berry and its directors and executive officers, and Glatfelter
and its directors and executive officers, may be deemed to be
participants in the solicitation of proxies from the holders of
Glatfelter capital stock and/or the offering of securities in
respect of the proposed transaction. Information about the
directors and executive officers of Berry is set forth in the
definitive proxy statement for Berry’s 2024 Annual Meeting of
Stockholders, which was filed with the SEC on January 4, 2024.
Information about the directors and executive officers of
Glatfelter is set forth in the proxy statement for Glatfelter's
2023 Annual Meeting of Shareholders, which was filed with the SEC
on March 31, 2023. Investors may obtain additional information
regarding the interest of such participants by reading the proxy
statement/prospectus regarding the proposed transaction when it
becomes available.
Berry Global Group,
Inc.
Consolidated Statements of
Income (Unaudited)
Quarterly Period Ended
(in millions of USD)
December 30, 2023
December 31, 2022
Net sales
$
2,853
$
3,060
Costs and expenses:
Cost of goods sold
2,379
2,542
Selling, general and administrative
235
236
Amortization of intangibles
60
60
Restructuring and transaction
activities
22
12
Operating income
157
210
Other expense
12
1
Interest expense, net
72
71
Income before income taxes
73
138
Income tax expense
14
32
Net income
$
59
$
106
Basic net income per share
$
0.51
$
0.86
Diluted net income per share
0.50
0.85
Outstanding weighted average shares
(in millions)
Basic
115.6
123.7
Diluted
118.3
125.2
Condensed Consolidated Balance
Sheets (Unaudited)
(in millions of USD)
December 30, 2023
September 30, 2023
Cash and cash equivalents
$
507
$
1,203
Accounts receivable
1,497
1,568
Inventories
1,689
1,557
Other current assets
257
205
Property, plant, and equipment
4,662
4,576
Goodwill, intangible assets, and other
long-term assets
7,532
7,478
Total assets
$
16,144
$
16,587
Current liabilities, excluding current
debt
2,345
2,703
Current and long-term debt
8,728
8,980
Other long-term liabilities
1,743
1,688
Stockholders’ equity
3,328
3,216
Total liabilities and stockholders'
equity
$
16,144
$
16,587
Condensed Consolidated
Statements of Cash Flows (Unaudited)
Quarterly Period Ended
(in millions of USD)
December 30, 2023
December 31, 2022
Cash flows from operating
activities:
Net income
$
59
$
106
Depreciation
154
139
Amortization of intangibles
60
60
Non-cash interest, net
(19
)
(13
)
Settlement of derivatives
19
-
Deferred income tax
(23
)
(33
)
Share-based compensation expense
21
23
Other non-cash operating activities,
net
11
(3
)
Changes in working capital
(481
)
(512
)
Net cash from operating
activities
(199
)
(233
)
Cash flows from investing
activities:
Additions to property, plant, and
equipment, net
(183
)
(211
)
Net cash from investing
activities
(183
)
(211
)
Cash flows from financing
activities:
Repayments on long-term borrowings
(1,858
)
(84
)
Proceeds from long-term borrowings
1,550
-
Repurchase of common stock
(7
)
(166
)
Proceeds from issuance of common stock
13
5
Dividends paid
(36
)
(33
)
Other, net
(4
)
-
Net cash from financing
activities
(342
)
(278
)
Effect of currency translation on cash
28
29
Net change in cash and cash
equivalents
(696
)
(693
)
Cash and cash equivalents at beginning of
period
1,203
1,410
Cash and cash equivalents at end of
period
$
507
$
717
Non-U.S. GAAP Free Cash Flow:
Cash flow from operating activities
$
(199
)
$
(233
)
Additions to property, plant, and
equipment (net)
(183
)
(211
)
Non-U.S. GAAP Free Cash Flow
$
(382
)
$
(444
)
Segment and Supplemental
Comparable Basis Information (Unaudited)
Quarterly Period Ended
December 30, 2023
(in millions of USD)
Consumer Packaging -
International
Consumer Packaging- North
America
Health, Hygiene &
Specialties
Flexibles
Total
Net sales
$
917
$
699
$
603
$
634
$
2,853
Operating income
$
31
$
63
$
(3
)
$
66
$
157
Depreciation and amortization
81
57
46
30
214
Restructuring and transaction
activities
3
4
13
2
22
Impact of hyperinflation
-
-
15
-
15
Other non-cash charges
8
6
4
5
23
Operating EBITDA
$
123
$
130
$
75
$
103
$
431
Quarterly Period Ended December
31, 2022
Reported net sales
$
936
$
764
$
663
$
697
$
3,060
Foreign currency, acquisitions &
divestitures
40
11
17
7
75
Comparable net sales (1)
$
976
$
775
$
680
$
704
$
3,135
Operating income
$
47
$
71
$
34
$
58
$
210
Depreciation and amortization
74
51
44
30
199
Restructuring and transaction
activities
3
1
3
5
12
Other non-cash charges
6
7
4
5
22
Foreign currency, acquisitions &
divestitures
6
5
3
1
15
Comparable operating EBITDA (1)
$
136
$
135
$
88
$
99
$
458
(1)
The prior year comparable basis change
excludes the impacts of foreign currency, acquisitions, and
divestitures. Further details related to non-GAAP measures and
reconciliations can be found under our “Non-GAAP Financial Measures
and Estimates” section or in reconciliation tables in this
release.
Reconciliation of Non-GAAP
Measures
Reconciliation of Net income and
earnings per share (EPS) to adjusted operating income, operating
earnings before interest, tax, depreciation and amortization
(EBITDA), and adjusted earnings per share (adjusted EPS)
(in millions of USD, except per share data
amounts)
Quarterly Period Ended
December 30, 2023
December 31, 2022
Net income
$
59
$
106
Add: other expense
12
1
Add: interest expense
72
71
Add: income tax expense
14
32
Operating income
$
157
$
210
Add: restructuring and transaction
activities
22
12
Add: impact of hyperinflation
15
-
Add: other non-cash charges
23
22
Adjusted operating income (2)
$
217
$
244
Add: depreciation
154
139
Add: amortization of intangibles
60
60
Operating EBITDA (2)
$
431
$
443
Net income per diluted share
$
0.50
$
0.85
Other expense, net
0.10
0.01
Restructuring and transaction
activities
0.19
0.09
Impact of hyperinflation
0.13
—
Amortization of intangibles from
acquisitions (1)
0.51
0.48
Income tax impact on items above
(0.21
)
(0.13
)
Foreign currency, acquisitions, and
divestitures
—
0.04
Adjusted net income per diluted
share (2)
$
1.22
$
1.34
Estimated Fiscal 2024
Cash flow from operating activities
$1,350-$1,450
Net additions to property, plant, and
equipment
(550)
Free cash flow (2)
$800-$900
(1)
Amortization of intangibles from acquisition are added back to
better align our calculation of adjusted EPS with peers.
(2)
Supplemental financial measures that are not required by, or
presented in accordance with, accounting principles generally
accepted in the United States (“GAAP”). These non-GAAP financial
measures should not be considered as alternatives to operating or
net income or cash flows from operating activities, in each case
determined in accordance with GAAP. Organic sales growth and
comparable basis measures exclude the impact of currency
translation effects and acquisitions. These non-GAAP financial
measures may be calculated differently by other companies,
including other companies in our industry, limiting their
usefulness as comparative measures. Berry’s management believes
that adjusted net income and other non-GAAP financial measures are
useful to our investors because they allow for a better
period-over-period comparison of operating results by removing the
impact of items that, in management’s view, do not reflect our core
operating performance.
We define “free cash flow” as cash flow
from operating activities, less net additions to property, plant,
and equipment. We believe free cash flow is useful to an investor
in evaluating our liquidity because free cash flow and similar
measures are widely used by investors, securities analysts, and
other interested parties in our industry to measure a company’s
liquidity. We also believe free cash flow is useful to an investor
in evaluating our liquidity as it can assist in assessing a
company’s ability to fund its growth through its generation of
cash.
We also use Adjusted operating income,
Operating EBITDA, adjusted EPS and comparable basis measures, among
other measures, to evaluate management performance and in
determining performance-based compensation. Operating EBITDA is a
measure widely used by investors, securities analysts, and other
interested parties in our industry to measure a company’s
performance. We also believe EBITDA and Adjusted operating income
are useful to an investor in evaluating our performance without
regard to revenue and expense recognition, which can vary depending
upon accounting methods.
(BERY-F)
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240207316115/en/
Dustin Stilwell VP, Investor Relations +1 (812) 306 2964
ir@berryglobal.com
Berry Global (NYSE:BERY)
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