Berry Global and WestRock post 14% and 0.6% drop in sales respectively in Q1 of FY23

US – American packaging company Berry Global has generated US$3.06 billion in sales in the first quarter (Q1) of fiscal 2023 (FY23), down by 14%.

Berry Global said this decline was primarily due to a 6% fall in volume and a 4% decrease in selling prices.

During the quarter, the company’s operating income was US$210 million, down by 8% from US$229 million in Q1 2022.

Its net income also declined to US$106 million in Q1 2023, against US$121 million a year earlier.

Berry Global’s diluted net income for each share decreased to US$0.85 in Q1 from US$0.87 in Q1 2022, while its adjusted net income for each share grew by 4% to US$1.30.

The company’s operating earnings before interest, tax, depreciation and amortization (EBITDA) declined by 3% from US$457 million to US$443 million year-on-year.

For FY23, Berry Global expects its full-year adjusted earnings per share to be between US$7.30 and US$7.80.

Berry Global chairman and CEO Tom Salmon said: “We have made significant progress recovering inflation along with contributions from our cost reduction initiatives and delivered strong price cost spread in the quarter.

“These internal actions helped to offset a 6% volume decline primarily driven by softer market demand, in line with many of our large global customers.

“We continued our focus on driving long-term value for our shareholders and repurchased $178 million of shares, or another 2.4% of shares outstanding, in the quarter, while also paying our first-ever quarterly dividend.

WestRock’s net sales down in Q1 of FY23

Meanwhile, US-based paper and packaging company WestRock has reported sales of US$4.9 billion for the first quarter (Q1) of fiscal 2023 (FY23), which ended on 31 December.

Sales in Westrock’s Consumer Packaging segment increased by 6.7% in the quarter, while its Corrugated Packaging segment sales was up by 0.7%.

The company’s net income dropped to US$45.3 million in Q1 due to rising net cost inflation, lower volumes, economic downtime and other factors. Its adjusted net income for the quarter was US$141 million.

WestRock recorded earnings per diluted share (EPS) of US$0.18 in the quarter, as well as adjusted EPS of US$0.55.

The company’s adjusted earnings before interest, tax, depreciation and amortization (EBITDA) for the quarter was US$652.1 million, representing a 4.1% fall of US$28 million from a year earlier.

WestRock attributed the fall in overall EBITDA to its Global Paper segment reporting a lower adjusted EBITDA.

WestRock CEO David Sewell said: “I’m pleased to report that WestRock grew packaging revenue and margins in the first quarter, even in this challenging environment.

“During the quarter, elevated inflation and softening macroeconomic conditions negatively impacted our Global Paper business.

“While we expect these market conditions to continue in the near term, we remain committed to executing on our strategy and delivering on our productivity efforts.”

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