Executive Summary

Q1 FY2025 delivered 2% organic volume growth across all three segments and Adjusted EPS of $1.09 (+5% YoY), while GAAP operating income fell 8% YoY to $152M due to higher business integration costs tied to the pending Amcor merger .
Net sales were $2.385B (+2% YoY) and Operating EBITDA was $378M (+4% YoY), with a $16M favorable price-cost spread supporting profitability; FY2025 guidance was reaffirmed (Adjusted EPS $6.10–$6.60; CFO $1.125–$1.225B; FCF $600–$700M) .
Strategic portfolio actions advanced: completed HHNF spin/merger (Nov), announced all-stock combination with Amcor, and closed sale of the Tapes business in early February, positioning Berry as a streamlined consumer packaging pure-play .
The company did not host a Q1 call due to the pending Amcor transaction; management posted the release and a presentation to its IR site, limiting real-time Q&A catalysts this quarter .
Dividend of $0.31 per share payable March 17, 2025 (record date March 3, 2025) was declared; no buybacks in Q1 as the company prioritizes deleveraging amid strategic transactions .

What Went Well and What Went Wrong

What Went Well

Adjusted EPS grew 5% YoY to $1.09, and Operating EBITDA rose 4% YoY to $378M; organic volume growth was +2% with all segments positive, demonstrating resilience in consumer-focused packaging .
Price-cost spread contributed a $16M favorable impact, supporting margins despite a muted demand backdrop; Consumer Packaging North America volumes +4% led by food, beverage, and foodservice markets .
Strategy execution: completed HHNF spin/merger, announced Amcor combination, and closed sale of Tapes business, advancing focus on fast-moving consumer goods and deleveraging priorities .
Quote (CEO): “We had a strong start to fiscal 2025, delivering 2% organic volume growth and a 5% increase in adjusted earnings per share compared to the prior year… we anticipate continued low-single digit volume growth… along with strong adjusted free cash flow” .

What Went Wrong

GAAP operating income down 8% YoY to $152M due to increased integration costs tied to the Amcor merger; EBIT margin compressed to ~6.4% from ~8.5% in Q4 and ~9.6% in Q3 on seasonality and cost headwinds .
Cash from operations and FCF (continuing ops) were negative in the quarter (CFO $(372)M; FCF $(488)M) on seasonal working capital outflows, weighing near-term liquidity optics despite full-year targets .
Total GAAP diluted EPS was $0.12, including a $(0.57) discontinued operations impact from HHNF, complicating headline EPS comparability and investor read-through .

Financial Results

Metric	Q3 2024	Q4 2024	Q1 2025
Net Sales ($USD Billions)	$3.161	$3.168	$2.385
Operating Income ($USD Millions)	$303	$269	$152
EBIT Margin % (calculated)	9.6% (303/3,161)	8.5% (269/3,168)	6.4% (152/2,385)
Operating EBITDA ($USD Millions)	$546	$546	$378
Diluted EPS (GAAP)	$1.65	$1.26	$0.69 (continuing ops)
Adjusted EPS (Non-GAAP)	$2.18	$2.27	$1.09

Segment breakdown – Q1 FY2025:

Segment	Net Sales ($MM)	Operating Income ($MM)	Operating EBITDA ($MM)	Organic Volume Growth
Consumer Packaging – International	$885	$28	$131	+1%
Consumer Packaging – North America	$769	$59	$133	+4%
Flexibles	$731	$65	$114	+1%
Total	$2,385	$152	$378	+2% consolidated

Key KPIs:

KPI	Q1 2025	Q1 2024
Cash Flow from Operations (continuing ops, $MM)	$(372)	$(168)
Free Cash Flow (continuing ops, $MM)	$(488)	$(336)
Dividend per Share (declared)	$0.31; payable Mar 17, 2025; record Mar 3, 2025	$0.275 (prior year schedule increased to $0.31 in FY2024 Q4)
Current & Long-term Debt ($MM)	$8,129	$8,980 (FY2023 year-end reference)
Cash & Equivalents ($MM)	$1,181	$507 (prior year Q1 quarter-end)

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Adjusted EPS	FY2025	$6.10–$6.60	$6.10–$6.60	Maintained
Cash Flow from Operations	FY2025	$1.125–$1.225B	$1.125–$1.225B	Maintained
Free Cash Flow	FY2025	$600–$700MM	$600–$700MM	Maintained
Leverage/Deleveraging	FY2025	Committed to further debt reduction	Committed to further debt reduction	Maintained
Dividend	FY2025	Quarterly dividend increased to $0.31 in Q4 FY2024	$0.31 declared for Q1 FY2025	Maintained

Notes: Management indicates FY2025 guidance excludes impacts from the Amcor/Berry combination; reconciliations of forward-looking adjusted EPS and FCF are not provided due to variability of certain items .

Earnings Call Themes & Trends

Berry did not host a Q1 FY2025 earnings call due to the pending Amcor transaction; themes below track commentary across recent quarters’ disclosures.

Topic	Previous Mentions (Q3 2024, Q4 2024)	Current Period (Q1 2025)	Trend
Portfolio optimization (HHNF spin/merger; divestitures)	HHNF spin/merger plan with GLT; progress and branding as Magnera; regulatory milestones; intent to be a pure-play packaging leader	HHNF spin/merger successfully completed in November; sale of Tapes business closed early Feb	Progressing/Completed
Strategic combination (Amcor)	Announced all-stock merger with Amcor in Nov; joint investor call conducted	Entered definitive agreement; transaction expected mid-2025; no Q1 call due to transaction	Advancing to close
Organic volume growth	+2% in Q3 with all segments low-single-digit growth	+2% consolidated; CPI +1%, CPN +4%, Flexibles +1%	Sustained low-single-digit
Price-cost spread/resin pass-through	Favorable price-cost spread supported Q3 OM; Q4 had negative spread vs prior-year timing tailwind	$16M favorable price-cost spread noted	Mixed but favorable in Q1
Leverage & capital returns	Achieved 3.5x leverage target at FY2024 end; increased dividend to $0.31	Committed to further debt reduction; dividend declared; no Q1 buybacks	Deleveraging priority maintained
Regional/market demand	EU industrial recovery noted (Flexibles); CPI stable with divestiture impact	EU industrial recovery continues; CPI: emerging market growth offset weaker Europe; CPN: broad-based strength	Gradual improvement; mixed in Europe

Management Commentary

“Our recent strategic actions, including the completion of the spin-off/merger of our HHNF business, announcement of the expected combination with Amcor, and the sale of our Tapes business, mark significant milestones… delivering 2% organic volume growth and a 5% increase in adjusted earnings per share… we anticipate continued low-single digit volume growth… along with strong adjusted free cash flow” — Kevin Kwilinski, CEO .
“Our intentional focus on fast-moving consumer goods will lead to more predictable earnings growth and cash generation… pursuing three key strategic objectives: accelerating organic growth, increasing margins through improved operations, and deleveraging” — Kevin Kwilinski, CEO .
Q4 context: “New Berry emerges as a global leader of consumer-focused packaging solutions with enhanced stability of earnings, free cash flow and growth… dividend raised to $0.31; leverage at 3.5x” .

Q&A Highlights

No earnings call was hosted for Q1 FY2025 due to the pending Amcor transaction; Berry posted the release and presentation to its IR site instead, limiting real-time Q&A and guidance clarifications this quarter .

Estimates Context

Wall Street consensus (S&P Global) for Q1 FY2025 and FY2025 was unavailable in our system due to a Capital IQ mapping issue for BERY; as a result, we cannot assess beat/miss versus consensus this quarter. Management reaffirmed FY2025 guidance (Adjusted EPS $6.10–$6.60; CFO $1.125–$1.225B; FCF $600–$700M), which provides the anchor for expectations in the absence of published consensus within our data access .
Note: The company reported Adjusted EPS of $1.09 and Operating EBITDA of $378M in Q1 FY2025, consistent with low-single-digit volume growth and favorable $16M price-cost spread; analysts will likely triangulate to management’s reaffirmed full-year ranges until SPGI consensus access is restored .

Key Takeaways for Investors

Q1 FY2025 executed to plan: low-single-digit volume growth across segments, Adjusted EPS up 5% YoY ($1.09), and Operating EBITDA up 4% YoY ($378M), with a favorable price-cost spread (+$16M) supporting margins .
GAAP optics reflect integration costs (Amcor) and discontinued operations (HHNF), compressing EBIT margin to ~6.4% and total diluted EPS to $0.12; underlying continuing ops EPS is $0.69, aligning with management’s consumer packaging focus .
Strategy is a near-term stock narrative: completed HHNF spin/merger, announced Amcor combination, and closed Tapes sale; expect transaction-related updates and regulatory milestones to be key catalysts into mid-2025 .
Capital returns intact amid deleveraging: $0.31 dividend declared; no Q1 buybacks; management reiterates debt reduction and strong full-year CFO/FCF targets .
Seasonal working capital weighed on quarterly CFO/FCF, but full-year guidance remains intact; monitor volume trajectory (particularly North America food/beverage & European industrial recovery) and price-cost dynamics .
Segment lens: CPN strength (+4% organic volume) and Flexibles recovery (+1%) offset Europe softness (CPI +1% organic volume with weaker demand in Europe), supporting consolidated +2% organic growth .
With no Q1 call, fewer immediate narrative shifts; focus instead on execution against FY2025 guidance and milestones for the Amcor transaction and ongoing deleveraging .

BERRY GLOBAL GROUP, INC. (BERY)·Q1 2025 Earnings Summary