US packaging giant Berry Global (Evansville, Indiana; www.berryglobal.com) reported a 10% revenue drop to USD 3.087 bn (EUR 2.8 bn) during the fourth quarter to September on lower selling prices as well as soft demand in consumer and industrial markets that lowered sales volumes. There was, however, a positive impact from currency changes, Berry said. 

The company reported a fall in operating income to USD 301 mn from USD 336 mn, following higher business integration costs and administrative expenses. These were partially offset by cost cuts and an improvement in product mix, the company added. The operating EBITDA gained 1% to USD 547 mn. For the full year, sales tumbled 13% to USD 12.6 bn while operating EBITDA declined 2% to USD 2.05 bn.

CEO Kevin Kwilinski, who has been in the role since October, said Berry exceeded its adjusted earnings-per-share (EPS) outlook and significantly beat the free cash flow guidance by over USD 100 mn. The 3% year-on-year volume decline in the quarter was actually an improvement compared to the second quarter and was better than expected on the back of market share gains supported by recent capital investments, he noted.

Revenues at the Engineered Materials segment declined year-on-year, both during the quarter and for the fiscal 2023, by 16% to USD 671 mn and by 17% to USD 2.88 bn, Berry said, adding these were due to the pass-through of reduced resin prices in the US and low volume mainly in European industrial markets. The company did, however, report growth in consumer and custom film markets in North America. 

Related: Berry Global’s Q2 sales volume and revenues decline

The segment’s quarterly operating EBITDA tumbled 2% year-on-year to USD 118 mn but in fiscal 2023 it climbed 4% to USD 463 mn, Berry said. The muted demand was partially offset by an improvement in product mix, following efforts to switch to higher value products and cost cuts.

Sales at the Consumer Packaging-International segment declined 6% to USD 1 bn while operating EBITDA gained 3% to USD 184 mn. Berry added that there was weak consumer and industrial market demand in Europe but cost cuts and increased presence in healthcare, pharmaceutical devices, and dispensing systems boosted profits. The operating EBITDA advanced 3% during the quarter to USD 184 mn and jumped 3% to USD 658 mn during the year.    

Sales at the Consumer Packaging-North America segment dipped 13% to USD 786 mn and for fiscal 2023 fell 13% to USD 3.12 bn, Berry said. The company attributed these to the pass-through of lower resin prices and softer overall customer demand. The operating EBITDA, however, was flat in Q3 at USD 161 mn and even gained 4% during the year at USD 598 mn. Berry said cost cuts and the focus on higher value products, such as food service, closures, and dispensing systems had favourable impact.

At the Health, Hygiene & Specialties segment – whose future in the company is undergoing a strategic review – quarterly and annual sales dipped 17%. Operating EBITDA eased 1% but lowered during the year by 18%.