Evansville-based Berry Global Group Inc. (NYSE: BERY) is reporting fiscal first quarter net income of $121 million, down from $130 million during the same period last year. Chief Executive Officer Tom Salmon says despite the drop, an underlying demand for the company’s products remains resilient.
“For the first fiscal quarter, we reported revenue of $3.6 billion, an increase of 14% compared to the prior year,” said Salmon. “We delivered two-year organic volume growth of 4% compared to pre-pandemic levels of the 2020 first fiscal quarter led by our Health, Hygiene & Specialties and Consumer Packaging segments primarily driven by market growth supported by our organic investments. Organic volume and cash flow both finished in line with our expectation, but could have been stronger had we seen improvements in supply chains.”
The company says cost increases in resin, its primary raw material, as well as inflation in other raw materials, freight, and labor, as well as supply chain disruptions continue to be its main challenges.
“We also see incremental opportunity to invest organically in support of our unwavering commitment to global growth,” said Salmon. “The continued positive momentum from our investments in areas such as health and wellness, e-commerce, and food safety, drive our business toward more sustainable packaging solutions, and provide us with a path to deliver long-term, consistent, volume and earnings growth, just as we have done over the last several years.”
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