US-based packaging company Berry Global has generated $3.06bn in sales in the first quarter (Q1) of fiscal 2023 (FY23).
Compared with the same period of fiscal 2022 (FY22), the company’s sales were down 14% on a reported basis and 11% on a comparable basis.
Berry Global said this decline was primarily due to a 6% fall in volume and 4% decrease in selling prices.
During the quarter, the company’s operating income was $210m, down by 8% from $229m in Q1 2022.
Its net income also declined to $106m in Q1 2023, against $121m a year earlier.
Berry Global’s diluted net income for each share decreased to $0.85 in Q1 from $0.87 in Q1 2022, while its adjusted net income for each share grew by 4% to $1.30.
The company’s operating earnings before interest, tax, depreciation and amortisation (EBITDA) declined by 3% from $457m to $443m year-on-year.
For FY23, Berry Global expects its full-year adjusted earnings per share to be between $7.30 and $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.
“We believe our shares remain undervalued and our repurchases reflect our confidence in the outlook of our business, our long-term strategy, and the strength of our operating model and cash flows.”
Last month, Berry Global announced plans to close its Berry Superfos Thermoforming factory in Corby, UK.