EVANSVILLE – Berry Global recorded record net sales for its financial year to the end of September 2022.
At $14.5 billion, sales were 10% up on the previous year with operating income of $1.2 billion.
Growth for Berry’s Health, Hygiene, & Specialties business – the largest nonwovens producer in the world – is primarily attributed to increased selling prices of $180 million due to the pass through of inflation, partially offset by a 3% organic volume decline, a $49 million unfavorable impact from foreign currency and a $42 million decrease from extra shipping days in fiscal 2021. A volume decline in 2022 has been primarily attributed to the moderation of products related to the Covid-19 pandemic.
Health, Hygiene, & Specialties also saw a decrease in operating income primarily due to a $138 million unfavourable impact from price cost spread, negative product mix and extra shipping days in 2021.
“Our businesses delivered fiscal year record results, including 10% revenue growth and 7% adjusted earnings per share growth, coming off of another record year in fiscal 2021,” said Berry’s chairman and CEO Tom Salmon. “Over the past few years we have seen persistent inflation and have taken proactive pricing actions while investing in cost reduction efforts.
“In both the near and long term, we remain focused on driving consistent, dependable, and sustainable growth, supported by our robust free cash flow and accompanied by our large-scale and diverse portfolio. Innovation and sustainability are increasingly embedded in everything we do and we continue to believe this represents a great opportunity for both growth and differentiation. As we navigate through fiscal 2023, we will continue our efforts on inflation recovery while taking the necessary actions to drive cost benefits through automation and asset optimisation across our global footprint.”
Berry’s capital expenditure in the next year is expected to be around $600 million.