US' Berry posts $2.5 bn in Q2 sales, driven by volume growth

The operating income of the company increased primarily due to a $7 million favourable impact from volume increases, a $41 million decline in business integration expenses, and $175 million gain from the divestiture of the Tapes business, partially offset by loss income from the divested business, Berry said in a press release.

In the consumer packaging—international net sales remained steady at $970 million, with increased selling prices of $32 million driven by higher raw material costs and 1 per cent organic volume growth. These gains were offset by a $20 million decline from divestitures and a 2 per cent negative impact from currency fluctuations. Operating income rose due to a $9 million favourable price-cost spread and a $58 million reduction in business integration expenses.

Meanwhile, North America net sales for the above segment grew by 5 per cent to $789 million, supported by 2 per cent organic volume growth and a $9 million increase in selling prices. However, operating income declined, primarily due to an unfavourable price-cost spread, partially offset by the benefits of organic volume growth.

In the Flexibles segment, net sales declined by 5 per cent to $761 million, primarily due to a $58 million reduction following the divestiture of the Tapes business. This decline was partially offset by a $9 million increase in selling prices and 2 per cent organic volume growth. Operating income rose mainly due to a $175 million gain from the divestiture, despite the loss of income from the divested business, added the release.

“Berry delivered a solid second quarter result aligned with the expectations we set. All three of our segments, once again, delivered positive volumes, driving 2 per cent overall organic volume growth in the quarter. I am extremely proud of our teams and their focus on delivering these results while managing several strategic portfolio activities, including the sale of our Tapes business and the pending merger with Amcor,” said Kevin Kwilinski, Berry’s chief executive officer (CEO).

“Together, we will be among the global leaders in consumer and healthcare packaging solutions with the combined material science and innovation capabilities required to revolutionise product development and better solve customers’ needs and consumers’ sustainability aspirations,” added Kwilinski.

ALCHEMPro News Desk (SG)