Berry Global Group Inc Stock Price, News & Analysis

Berry Global Group (NYSE: BERY) reported strong first quarter 2025 results with net sales of $2.4 billion, up 2% year-over-year, driven by 2% organic volume growth. The company achieved operating income of $152 million and earnings per share of $0.69. On a non-GAAP basis, Operating EBITDA reached $378 million (+4%) with adjusted EPS of $1.09 (+5%).

Strategic highlights include the successful completion of the HHNF business spin-off and merger with Glatfelter , a definitive merger agreement with Amcor expected to close mid-2025, and the sale of the Tapes business in February 2025. The company reaffirmed its fiscal year 2025 guidance, projecting adjusted EPS of $6.10-$6.60 and free cash flow of $600-$700 million.

Nautic Partners has completed its acquisition of Berry Global Group's (NYSE: BERY) Specialty Tapes business, launching it as a new standalone company called Vybond. Headquartered in Franklin, KY, with operations in Riverhead, NY, and Bristol, RI, Vybond offers over 1,500 SKUs across 500+ product families. The company leverages 60+ years of heritage from brands including Adchem®, Ludlow®, Nashua®, Patco®, and Polyken®.

Vybond serves diverse industries including HVAC, Building & Construction, Medical, Aerospace, Automotive, and Retail, with a global customer base exceeding 1,500. As an independent entity, the company aims to accelerate growth through product innovation and enhanced customer responsiveness. Nautic Partners plans to invest in new technologies, operational capabilities, and market expansion to drive Vybond's development.

Berry Global Group (NYSE: BERY) has announced its board of directors has declared a quarterly cash dividend of $0.31 per share. The dividend will be paid on March 17, 2025, to shareholders who are registered as stockholders of record as of March 3, 2025.

Berry Global Group (NYSE: BERY) has announced it will release its first quarter 2025 results on Tuesday, February 4, 2025, before the New York Stock Exchange opens for trading. Due to the previously announced transaction with Amcor in November 2024, the company will not conduct its usual quarterly conference call. Instead, Berry will publish its earnings release and a supplemental presentation regarding Q1 2025 results on their investor relations website.

Amcor and Berry Global have filed their definitive joint proxy statement with the SEC, marking a significant step toward completing their previously announced all-stock merger. Both companies will hold shareholder meetings on February 25, 2025. The merger aims to create a global leader in consumer and healthcare packaging solutions.

The combined entity expects to achieve $650 million in synergies through cost savings, growth, and financial improvements by the end of the third year post-merger. This includes $530 million in cost synergies, $60 million in financial savings, and $60 million from growth synergies. The company projects combined annual cash flow exceeding $3 billion and over 35% adjusted cash earnings per share accretion.

The transaction, unanimously recommended by both boards, is expected to close by mid-2025. The merger aims to enhance long-term shareholder value creation from 10-15% to 13-18% annually through sustained higher earnings growth and continued dividend growth.

Amcor (NYSE: AMCR) and Berry Global have filed their definitive joint proxy statement with the SEC, marking a significant step toward completing their previously announced all-stock merger. Both companies will hold shareholder meetings on February 25, 2025, with the transaction expected to close by mid-2025.

The merger aims to create a global leader in consumer and healthcare packaging solutions. The combined entity expects to achieve $650 million in synergies by the end of the third year post-merger, including $530 million in cost synergies, $60 million in financial savings, and $60 million from growth synergies. The company projects combined annual cash flow exceeding $3 billion and anticipates over 35% adjusted cash earnings per share accretion.

The transaction, unanimously recommended by both boards, is expected to enhance long-term shareholder value creation from 10-15% to 13-18% per annum through higher earnings growth and continued dividend growth.

Berry Global Group (NYSE: BERY) has announced that its subsidiary, Berry Global, Inc., is initiating exchange offers for up to $800,000,000 of new 5.650% First Priority Senior Secured Notes due 2034 and up to $800,000,000 of new 5.800% First Priority Senior Secured Notes due 2031. The exchange offers are for equal amounts of outstanding unregistered notes with the same terms.

The new Exchange Notes will be identical to the Outstanding Notes except for four key differences: they will be registered under the Securities Act of 1933, will not have transfer restrictions, will bear different CUSIP numbers, and won't include additional interest provisions. The exchange offers are exclusively available to current holders of the Outstanding Notes and will expire at 5:00 p.m. Eastern Time on February 11, 2025, unless extended.

Berry Global (NYSE: BERY) has achieved an 'AA' ESG rating from MSCI, marking its fourth consecutive year of rating upgrades. This places Berry among the top 20% of companies in MSCI's seven-grade framework and establishes it as a leader in the packaging industry.

The company demonstrated significant improvements in Corporate Governance, Corporate Behavior, and Packaging Material & Waste. Notable achievements include reaching their 2025 goal of reducing operational emissions (Scope 1 and 2) by 25% two years ahead of schedule. Berry has committed to science-based greenhouse gas reduction targets and aims for net-zero emissions by 2050.

Key initiatives include investments in recycling operations, increased use of post-consumer recycled plastic, and improved package recyclability. The company is implementing energy-saving solutions across global locations, targeting a reduction of 100 million kilowatt-hours (kWh) annually from existing operations. A detailed sustainability report is scheduled for publication in March.

Ancora Holdings Group has released its investment thesis on Amcor plc following the announced merger with Berry Global Group. The presentation, delivered at the Bloomberg Activism Forum, highlights the potential of the combined entity as a premium packaging company. Key financial projections include:

- Conservative synergy estimates of $650 million
- Projected proforma EBITDA of $4.5 billion
- Potential share price increase from ~$10 to ~$16
- Expected upside of 50-70%

The merger is anticipated to close in mid-2025, creating what Ancora believes will be a company with a durable free cash flow profile at a significantly discounted valuation.