SEC Form 10-Q filed by Berry Global Group Inc.

4/30/25 7:05:54 AM ET

$BERY

Plastic Products

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 29, 2025

☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF SECURITIES EXCHANGE ACT OF 1934

For the transition period from __________ to __________

Commission File Number 001-35672

BERRY GLOBAL GROUP, INC.

A Delaware corporation

101 Oakley Street, Evansville, Indiana, 47710

(812) 424-2904

IRS employer identification number

20-5234618

Securities registered pursuant to Section 12(b) of the Exchange Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, $0.01 par value per share	BERY	New York Stock Exchange LLC

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large Accelerated Filer ☒

Accelerated Filer ☐

Non-Accelerated Filer ☐

Smaller Reporting Company ☐

Emerging Growth Company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

There were 116.7 million shares of common stock outstanding at April 30, 2025.

CAUTIONARY STATEMENT CONCERNING FORWARD-LOOKING STATEMENTS

Information included or incorporated by reference in Berry Global Group, Inc.’s filings with the U.S. Securities and Exchange Commission (the “SEC”) and press releases or other public statements contains or may contain forward-looking statements. This report includes “forward-looking” statements with respect to our financial condition, results of operations and business and our expectations or beliefs concerning future events. These statements contain words such as “believes,” “expects,” “may,” “will,” “should,” “would,” “could,” “seeks,” “approximately,” “intends,” “plans,” “estimates,” “project,” “outlook,” “anticipates” or “looking forward” or similar expressions that relate to our strategy, plans, intentions, or expectations. All statements we make relating to our estimated and projected earnings, margins, costs, expenditures, cash flows, growth rates, and financial results or to our expectations regarding future industry trends are forward-looking statements. In addition, we, through our senior management, from time to time make forward-looking public statements concerning our expected future operations and performance and other developments. These forward-looking statements are subject to risks and uncertainties that may change at any time, and, therefore, our actual results may differ materially from those that we expected. All forward-looking statements are made only as of the date hereof, and we undertake no obligation to publicly update or revise any forward-looking statement as a result of new information, future events or otherwise, except as otherwise required by law.

Additionally, we caution readers that the list of important factors discussed in our most recent Form 10-K in the section titled “Risk Factors” and subsequent periodic reports filed with the SEC may not contain all of the material factors that are important to you. In addition, in light of these risks and uncertainties, the matters referred to in the forward-looking statements contained in this report may not in fact occur. Accordingly, readers should not place undue reliance on those statements.

Berry Global Group, Inc.

Form 10-Q Index

For Quarterly Period Ended March 29, 2025

Part I.	Financial Information		Page No.
	Item 1.	Financial Statements:
		Consolidated Statements of Income and Comprehensive Income	4
		Consolidated Balance Sheets	5
		Consolidated Statements of Cash Flows	6
		Consolidated Statements of Changes in Stockholders’ Equity	7
		Notes to Consolidated Financial Statements	8
	Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	18
	Item 3.	Quantitative and Qualitative Disclosures about Market Risk	23
	Item 4.	Controls and Procedures	24
Part II.	Other Information
	Item 1.	Legal Proceedings	24
	Item 1A.	Risk Factors	24
	Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	25
	Item 5.	Other Information	25
	Item 6.	Exhibits	25
	Signature		26

Index

Part I. Financial Information

Item 1.

Financial Statements

Berry Global Group, Inc.

Consolidated Statements of Income

(Unaudited)

(in millions of dollars, except per share amounts)

	Quarterly Period Ended						Two Quarterly Periods Ended
	March 29, 2025			March 30, 2024			March 29, 2025			March 30, 2024
Net sales	$	2,520		$	2,519		$	4,905		$	4,852
Costs and expenses:
Cost of goods sold		2,018			2,019			3,947			3,922
Selling, general and administrative		200			187			423			393
Amortization of intangibles		44			48			90			95
Business consolidation and other activities		(133	)		83			(98	)		95
Operating income		391			182			543			347
Other expense (income)		12			(1	)		(10	)		14
Interest expense		73			75			148			146
Income from continuing operations before income taxes		306			108			405			187
Income tax expense		110			13			128			27
Income from continuing operations		196			95			277			160
Discontinued operations
Income (loss) from discontinued operations		(4	)		23			(74	)		17
Income tax expense (benefit)		(1	)		2			(4	)		2
Net income (loss) on discontinued operations (Note 2)		(3	)		21			(70	)		15
Net income	$	193		$	116		$	207		$	175

Net income (loss) per share:
Basic earnings (loss) per share:
Continuing operations	$	1.69		$	0.82		$	2.40		$	1.38
Discontinued operations		(0.03	)		0.18			(0.61	)		0.13
Net income	$	1.66		$	1.00		$	1.79		$	1.51
Diluted earnings (loss) per share:
Continuing operations	$	1.64		$	0.80		$	2.33		$	1.35
Discontinued operations		(0.02	)		0.18			(0.59	)		0.13
Net income	$	1.62		$	0.98		$	1.74		$	1.48

Consolidated Statements of Comprehensive Income

(Unaudited)

(in millions of dollars)

	Quarterly Period Ended						Two Quarterly Periods Ended
	March 29, 2025			March 30, 2024			March 29, 2025			March 30, 2024
Net income	$	193		$	116		$	207		$	175
Other comprehensive income (loss), net of tax:
Currency translation		94			(70	)		(91	)		69
Pension		—			—			(2	)		—
Derivative instruments		(16	)		18			20			(59	)
Other comprehensive income (loss)		78			(52	)		(73	)		10
Comprehensive income	$	271		$	64		$	134		$	185

See notes to consolidated financial statements.

Index

Berry Global Group, Inc.

Consolidated Balance Sheets

(in millions of dollars)

	March 29, 2025			September 28, 2024
	(Unaudited)
Assets
Current assets:
Cash and cash equivalents	$	483		$	865
Accounts receivable		1,284			1,271
Finished goods		870			835
Raw materials and supplies		504			534
Prepaid expenses and other current assets		172			182
Current assets of discontinued operations (Note 2)		—			887
Total current assets		3,313			4,574
Noncurrent assets:
Property, plant and equipment		3,534			3,627
Goodwill and intangible assets		5,350			5,588
Right-of-use assets		567			602
Other assets		118			152
Non-current assets of discontinued operations (Note 2)		—			2,070
Total assets	$	12,882		$	16,613


Liabilities and stockholders’ equity
Current liabilities:
Accounts payable	$	1,080		$	1,471
Accrued employee costs		190			267
Other current liabilities		819			711
Current portion of long-term debt		1,535			810
Current liabilities of discontinued operations (Note 2)		—			413
Total current liabilities		3,624			3,672
Noncurrent liabilities:
Long-term debt		5,444			7,505
Deferred income taxes		252			413
Employee benefit obligations		135			152
Operating lease liabilities		468			495
Other long-term liabilities		483			579
Non-current liabilities of discontinued operations (Note 2)		—			189
Total liabilities		10,406			13,005

Stockholders’ equity:
Common stock (116.5 and 115.0 million shares issued, respectively)		1			1
Additional paid-in capital		1,403			1,321
Retained earnings		1,269			2,581
Accumulated other comprehensive loss		(197	)		(295	)
Total stockholders’ equity		2,476			3,608
Total liabilities and stockholders’ equity	$	12,882		$	16,613

See notes to consolidated financial statements.

Index

Berry Global Group, Inc.

Consolidated Statements of Cash Flows

(Unaudited)

(in millions of dollars)

	Two Quarterly Periods Ended
	March 29, 2025			March 30, 2024
Cash Flows from Operating Activities:
Net income	$	207		$	175
Income (loss) from discontinued operations		(70	)		15
Income from continuing operations		277			160
Adjustments to reconcile net cash from operating activities:
Depreciation		250			246
Amortization of intangibles		90			95
Non-cash interest (income), net		(25	)		(44	)
Settlement of derivatives		—			23
Deferred income tax		(179	)		(24	)
Debt extinguishment		3			3
Share-based compensation expense		29			25
(Gain)/loss on disposition of business		(184	)		57
Other non-cash operating activities, net		(9	)		15
Changes in working capital		(480	)		(524	)
Changes in other assets and liabilities		16			13
Operating cash from (used in) continuing operations		(212	)		45
Operating cash used in discontinued operations		(109	)		(45	)
Net cash from operating activities		(321	)		—

Cash Flows from Investing Activities:
Additions to property, plant and equipment, net		(257	)		(292	)
Divestiture of business		443			47
Acquisition of business and other		(48	)		—
Investing cash from (used in) continuing operations		138			(245	)
Investing cash used in discontinued operations		(9	)		(41	)
Net cash from investing activities		129			(286	)

Cash Flows from Financing Activities:
Proceeds from long-term borrowings		—			2,350
Repayments on long-term borrowings		(1,285	)		(2,640	)
Proceeds from HHNF long-term borrowings related to spin-off (Note 2)		1,585			—
Cash transferred to HHNF related to spin-off (Note 2)		(624	)		—
Proceeds from issuance of common stock		53			24
Repurchase of common stock		—			(88	)
Dividends paid		(80	)		(70	)
Debt financing costs and other (Note 2)		(40	)		(12	)
Net cash from financing activities		(391	)		(436	)
Effect of currency translation on cash		(29	)		13
Net change in cash and cash equivalents		(612	)		(709	)
Cash and cash equivalents at beginning of period		1,095			1,203
Cash and cash equivalents at end of period	$	483		$	494

See notes to consolidated financial statements.

Index

Berry Global Group, Inc.

Consolidated Statements of Changes in Stockholders’ Equity

(Unaudited)

(in millions of dollars)

Quarterly Period Ended	Common Stock		Additional Paid-in Capital			Accumulated Other Comprehensive Loss			Retained Earnings			Total
Balance at December 28, 2024	$	1	$	1,360		$	(275	)	$	1,120		$	2,206
Net income		—		—			—			193			193
Other comprehensive (loss)		—		—			78			—			78
Share-based compensation		—		8			—			—			8
Proceeds from issuance of common stock		—		35			—			—			35
Common stock repurchased and other		—		—			—			—			—
Dividends paid		—		—			—			(44	)		(44	)
Spin-off of HHNF business		—		—			—			—			—
Balance at March 29, 2025	$	1	$	1,403		$	(197	)	$	1,269		$	2,476

Balance at December 30, 2023	$	1	$	1,265		$	(274	)	$	2,336		$	3,328
Net income		—		—			—			116			116
Other comprehensive income		—		—			(52	)		—			(52	)
Share-based compensation		—		9			—			—			9
Proceeds from issuance of common stock		—		8			—			—			8
Common stock repurchased and other		—		(3	)		—			(78	)		(81	)
Dividends paid		—		—			—			(34	)		(34	)
Balance at March 30, 2024	$	1	$	1,279		$	(326	)	$	2,340		$	3,294

Two Quarterly Periods Ended	Common Stock		Additional Paid-in Capital			Accumulated Other Comprehensive Loss			Retained Earnings			Total
Balance at September 28, 2024	$	1	$	1,321		$	(295	)	$	2,581		$	3,608
Net income		—		—			—			207			207
Other comprehensive (loss)		—		—			(73	)		—			(73	)
Share-based compensation		—		29			—			—			29
Proceeds from issuance of common stock		—		53			—			—			53
Common stock repurchased and other		—		—			—			—			—
Dividends paid		—		—			—			(80	)		(80	)
Spin-off of HHNF business		—		—			171			(1,439	)		(1,268	)
Balance at March 29, 2025	$	1	$	1,403		$	(197	)	$	1,269		$	2,476

Balance at September 30, 2023	$	1	$	1,231		$	(336	)	$	2,320		$	3,216
Net income		—		—			—			175			175
Other comprehensive income		—		—			10			—			10
Share-based compensation		—		30			—			—			30
Proceeds from issuance of common stock		—		21			—			—			21
Common stock repurchased and other		—		(3	)		—			(85	)		(88	)
Dividends paid		—		—			—			(70	)		(70	)
Balance at March 30, 2024	$	1	$	1,279		$	(326	)	$	2,340		$	3,294

See notes to consolidated financial statements.

Index

Berry Global Group, Inc.

Notes to Consolidated Financial Statements

(Unaudited)

(tables in millions of dollars, except per share data)

1. Basis of Presentation

The accompanying unaudited Consolidated Financial Statements of Berry Global Group, Inc. (“the Company,” “we,” or “Berry”) have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) pursuant to the rules and regulations of the Securities and Exchange Commission (the "SEC") for interim reporting. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In preparing financial statements in conformity with GAAP, we must make estimates and assumptions that affect the reported amounts and disclosures at the date of the financial statements and during the reporting period. Actual results could differ from those estimates. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been included, and all subsequent events up to the time of the filing have been evaluated. For further information, refer to the Company’s most recent Form 10-K filed with the SEC.

The Condensed Consolidated Balance Sheet at September 28, 2024 has been derived from the audited financial statements at that date, but does not include all the information and footnotes required by U.S. GAAP for complete financial statements.

On November 4, 2024 (the “Distribution Date”), Berry completed the spin-off and merger (the “spin-off”) of its former Health, Hygiene & Specialties Global Nonwovens and Films business ("HHNF") with Glatfelter Corporation ("GLT"), to create Magnera Corporation ("Magnera"). To effect the spin-off, each Berry stockholder received 0.276305 shares of Magnera's common stock for every one share of Berry common stock (which also reflects the 1-13 reverse stock split effected by Magnera on November 4, 2024), held by each such Berry stockholder on the spin-off record date. On November 5, 2024, Magnera's common stock began trading on the New York Stock Exchange under the symbol “MAGN”. The Company did not retain any equity interest in Magnera.

In accordance with U.S. GAAP, the financial position and results of operations of the HHNF business are presented as discontinued operations and, as such, have been excluded from continuing operations for all periods presented. With the exception of Note 2, the Notes to the Unaudited Condensed Consolidated Financial Statements reflect the continuing operations of Berry. See Note 2 - Discontinued Operations below for additional information regarding discontinued operations.

Certain amounts in the prior year’s condensed consolidated financial statements and related footnotes thereto have been reclassified to conform with the current year presentation as a result of the spin-off of HHNF.

Upon completion of the spin-off, Berry has concluded at November 4, 2024 that it has three reportable segments, based on the way the Chief Operating Decision Maker evaluates its financial performance and manages its operations. Prior to the completion of the spin-off, the Company had four reportable segments, Consumer Packaging North America, Consumer Packaging International, Flexibles, and the former Health, Hygiene & Specialties. The Company’s former Health, Hygiene & Specialties reportable segment included the Company’s HHNF business.

Statements in this report that are not of historical fact are forward-looking statements that involve risks and uncertainties that could affect the actual results of the Company. A description of the important factors that could cause Berry’s actual results to differ materially from the forward looking statements contained in this report may be found in this report and Berry’s other reports filed with the Securities and Exchange Commission (the “SEC”). For further information, refer to the consolidated financial statements, footnotes and definitions thereto included in the Company’s Annual Report on Form 10-K for the year ended September 28, 2024, filed with the SEC on November 26, 2024.

2. Discontinued Operations

As discussed in Note 1 above, on November 4, 2024, the Company completed the spin-off of HHNF and the requirements for the presentation of HHNF as a discontinued operation were met on that date. Accordingly, HHNF’s historical financial results are reflected in the Company’s unaudited condensed consolidated financial statements as discontinued operations. The Company did not allocate any general corporate overhead or interest expense to discontinued operations.

Index

The following table presents the financial results of HHNF (dollars in millions).

	Quarterly Period Ended					Two Quarterly Periods Ended
	March 29, 2025			March 30, 2024		March 29, 2025			March 30, 2024
Net sales	$	—		$	557	$	204		$	1,077
Cost of sales		—			490		179			966
Selling, general and administrative expenses		—			26		9			55
Amortization of intangibles		—			11		4			24
Business consolidation and other activities		4			4		83			14
Operating income (loss)		(4	)		26		(71	)		18
Interest expense		—			1		1			2
Other expense (income)		—			2		2			(1	)
Income (loss) before income taxes		(4	)		23		(74	)		17
Income tax expense (benefit)		(1	)		2		(4	)		2
Net income (loss) from discontinued operations		(3	)		21		(70	)		15

The Company has incurred $81 million during fiscal 2025 in separation costs related to the spin-off of HHNF, and is reported in discontinued operations. These costs are primarily related to professional fees associated with planning the spin-off, as well as spin-off activities within finance, tax, legal and information system functions and certain investment banking fees incurred upon the completion of the spin-off.

The following table summarizes the carrying value of major classes of assets and liabilities of HHNF, reclassified as assets and liabilities of discontinued operations at September 28, 2024 (dollars in millions).

	September 28, 2024
Assets
Cash and cash equivalents	$	230
Receivables, net		333
Inventories, net		262
Other current assets		62
Total current assets, discontinued operations	$	887

Property, plant and equipment, net	$	948
Goodwill and intangibles, net		1,036
Right of use asset		49
Other assets		37
Total non-current assets, discontinued operations	$	2,070

Liabilities
Accounts payable	$	295
Other current liabilities		118
Total current liabilities, discontinued operations	$	413

Deferred income taxes	$	62
Operating lease liability		39
Other non-current liabilities		88
Total non-current liabilities, discontinued operations	$	189

In connection with the spin-off, the Company entered into definitive agreements with Magnera that, among other matters, set forth the terms and conditions of the spin-off and provide a framework for Berry’s relationship with Magnera after the spin-off, including the following:

Transition Services Agreement

Pursuant to the Transition Services Agreement (TSA), Berry or one of its subsidiaries will provide various services to Magnera and its subsidiaries and Magnera or one of its subsidiaries agreed to provide various services to Berry for a limited time to help ensure an orderly transition following the spin-off. The services will terminate no later than November 4, 2026. Income from the TSA is not material to the Consolidated Statements of Income.

Index

Tax Matters Agreement

Pursuant to the Tax Matters Agreement, Berry and Magnera allocated the liability for taxes and certain tax assets between the two companies. The Tax Matters Agreement also governs the parties’ respective rights, responsibilities, and obligations with respect to U.S. federal, state, local and foreign taxes (including taxes arising in the ordinary course of business and taxes, if any, incurred as a result of any failure of the spin-off and certain related transactions to qualify as tax-free for U.S. federal income tax purposes), tax attributes, the preparation and filing of tax returns, the control of audits and other tax proceedings, and assistance and cooperation in respect of tax matters.

Pursuant to the Tax Matters Agreement, Berry is the primary obligor on all taxes which relate to any period prior to November 4, 2024.

Financing Activities

In connection with the close of the spin-off, Treasure Holdco, Inc. (Treasure), at the time a fully consolidated subsidiary of Berry, entered into $1.59 billion of new debt obligations. The debt was ultimately transferred to HHNF in connection with the spin-off and is a non-cash transaction. Cash transferred to the HHNF business related to the spin-off was $624 million.

3. Revenue and Accounts Receivable

Our revenues are primarily derived from the sale of flexible and rigid products to customers. Revenue is recognized when performance obligations are satisfied, in an amount reflecting the consideration to which the Company expects to be entitled. We consider the promise to transfer products to be our sole performance obligation. If the consideration agreed to in a contract includes a variable amount, we estimate the amount of consideration we expect to be entitled to in exchange for transferring the promised goods to the customer using the most likely amount method. Our main source of variable consideration is customer rebates. There are no material instances where variable consideration is constrained and not recorded at the initial time of sale. Generally, our revenue is recognized at a point in time for standard promised goods at the time of shipment, when title and risk of loss pass to the customer. The accrual for customer rebates was $93 million at March 29, 2025 and $99 million at September 28, 2024, and is included in Other current liabilities on the Consolidated Balance Sheets. The Company disaggregates revenue based on reportable business segment, geography, and significant product line. Refer to Note 10. Segment and Geographic Data for further information.

Accounts receivable are presented net of allowance for credit losses of $16 million at March 29, 2025 and $17 million at September 28, 2024. The Company records its current expected credit losses based on a variety of factors including historical loss experience and current customer financial condition. The changes to our current expected credit losses, write-off activity, and recoveries were not material for any of the periods presented.

The Company has entered into various factoring agreements to sell certain receivables to third-party financial institutions. Agreements which result in true sales of the transferred receivables, which occur when receivables are transferred without recourse to the Company, are reflected as a reduction of accounts receivable on the Consolidated Balance Sheets and the proceeds are included in the Cash Flows from Operating Activities in the Consolidated Statements of Cash Flows. The fees associated with the transfer of receivables for all programs were not material for any of the periods presented.

4. Acquisitions and Dispositions

CMG Plastics

In October 2024, the Company acquired CMG Plastics, a leading plastics injection molding company, for a purchase price of $48 million. The acquired business is operated within the Consumer Packaging North America segment. To finance the purchase, the Company used existing liquidity. The acquisition has been accounted for under the purchase method of accounting and accordingly, the purchase price has been allocated to the identifiable assets and liabilities based on preliminary values at the acquisition date. The Company has recognized $29 million of goodwill on this transaction primarily as a result of expected cost synergies and does not expect goodwill to be deductible for tax purposes.

Index

F&S Tool Inc.

In April 2024, the Company acquired F&S Tool Inc. (“F&S”), a leading manufacturer of high output, high efficiency injection molding applications, for a purchase price of $68 million. The Company used existing liquidity to finance the acquisition, and the business is operated within the Consumer Packaging North America segment. The F&S acquisition has been accounted for under the purchase method of accounting and accordingly, the purchase price has been allocated to the identifiable assets and liabilities assumed. The fair value of assets acquired and liabilities assumed consisted of working capital of $3 million, property and equipment of $19 million, intangible assets of $22 million, goodwill of $35 million, and net other long-term liabilities of $11 million. The Company has recognized goodwill on this transaction primarily as a result of expected cost synergies and does not expect goodwill to be deductible for tax purposes.

Tapes

In February 2025, the Company completed the previously announced sale of its Specialty Tapes business (“Tapes”) for a purchase price of $443 million after closing adjustments. The Tapes business was operated within the Flexibles segment, and had annual revenues of $340 million in fiscal 2024 and $331 million in fiscal 2023. The Company recognized a pre-tax gain of $175 million, net of transaction costs, and is recorded in Business Consolidation and Other Activities.

Amcor

On November 19, 2024, the Company announced that it has entered into an Agreement and Plan of Merger (the “Merger Agreement”) with Amcor plc, a Jersey public company (“Amcor”) and Aurora Spirit, Inc., a Delaware corporation and wholly-owned subsidiary of Amcor (“Merger Sub”). The Merger Agreement provides for, among other things and subject to the satisfaction or waiver of specified conditions set forth therein, the merger of Merger Sub with and into Company (the “Merger”), with the Company surviving the Merger as a wholly-owned subsidiary of Amcor. Subject to the terms and conditions set forth in the Merger Agreement, at the effective time of the Merger (the “Effective Time”), each share of the Company’s common stock issued and outstanding (excluding shares held by the Company as treasury stock immediately prior to the Effective Time) will be converted into the right to receive 7.25 fully paid and nonassessable Amcor ordinary shares (and, if applicable, cash in lieu of fractional shares), less any applicable withholding taxes.

The completion of the Merger is subject to the satisfaction or waiver of certain conditions, including: (i) the adoption of the Merger Agreement by the Company’s stockholders, which was received on February 25, 2025, (ii) the approval of the issuance of Amcor ordinary shares in the Merger by Amcor’s shareholders, which was received on February 25, 2025, (iii) the expiration or termination of any applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, which waiting period expired on March 10, 2025, and the absence of any agreement with either the Federal Trade Commission or the Antitrust Division of the Department of Justice not to complete the Merger, (iv) the receipt of other required regulatory approvals, (v) the absence of any order or law that has the effect of enjoining or otherwise prohibiting the completion of the Merger, (vi) the approval for listing of the Amcor ordinary shares to be issued in connection with the Merger on the New York Stock Exchange and the effectiveness of Amcor’s registration statement on Form S-4 with respect to such ordinary shares, which was declared effective on January 23, 2025, (vii) subject to certain exceptions, the accuracy of the representations and warranties of the other party, (viii) performance in all material respects by each party of its respective obligations under the Merger Agreement and (ix) the absence of certain changes that have had, or would reasonably be expected to have, a material adverse effect with respect to each of the Company and Amcor.

Amcor will be required to pay the Company a termination fee equal to $260 million in specified circumstances, including if Amcor terminates the Merger Agreement to enter into a superior proposal or if the Company terminates the Merger Agreement following a change of recommendation by Amcor’s Board of Directors, in each case, subject to the terms and conditions of the Merger Agreement. The Company will be required to pay Amcor a termination fee equal to $260 million in specified circumstances, including if the Company terminates the Merger Agreement to enter into a superior proposal or if Amcor terminates the Merger Agreement following a change of recommendation by the Company’s Board of Directors, in each case, subject to the terms and conditions of the Merger Agreement.

On April 25, 2025, the Company and Amcor announced the receipt of the final regulatory approval required for the consummation of the Merger and that the transaction is expected to close on April 30, 2025, subject to the satisfaction or waiver of certain other closing conditions.

The foregoing description of the Merger Agreement and the Merger does not purport to be complete and is qualified in its entirety by reference to the full text of the Merger Agreement, a copy of which is attached as Exhibit 2.1 to the Current Report on Form 8-K/A filed by the Company on November 19, 2024 and which is incorporated herein by reference.

Index

5. Business Consolidation and Other Activities

In fiscal 2023, the Company initiated cost savings initiatives including plant rationalization in all segments as part of the 2023 restructuring plan. The Company expects total cash and non-cash expense of the plan to be approximately $250 million, with the operations savings intended to counter general economic softness. All initiatives are expected to be fully implemented by the end of fiscal 2025.

The table below includes the significant components of our business consolidation and other activities, by reporting segment:

	Quarterly Period Ended				Two Quarterly Periods Ended				Restructuring Plans
	March 29, 2025(a)		March 30, 2024		March 29, 2025(a)		March 30, 2024		Life to date (a)
Consumer Packaging International	$	15	$	73	$	32	$	78		124
Consumer Packaging North America		13		7		22		12		34
Flexibles		14		3		23		5		28
Consolidated	$	42	$	83	$	77	$	95		186

(a) Excludes $175 million gain from the sale of the Tapes business (see Note 4).

Other activities consist of acquisition, divestiture and other business optimization related costs. $5 million and $23 million in the Quarter and Year to Date periods, respectively, of the transaction activities related to the proposed merger with Amcor. The table below sets forth the activity with respect to the charges and the impact on our accrued reserves at March 29, 2025:

	Business Consolidation
	Employee Severance and Benefits			Facility Exit Costs			Non-Cash Impairment Charges			Transaction Activities			Total
Balance as of September 28, 2024	$	29		$	—		$	—		$	—		$	29
Charges		1			11			1			64			77
Non-cash items		—			—			(1	)		—			(1	)
Cash		(13	)		(11	)		—			(64	)		(88	)
Balance as of March 29, 2025	$	17		$	—		$	—		$	—		$	17

6. Leases

The Company leases certain manufacturing facilities, warehouses, office space, manufacturing equipment, office equipment, and automobiles.

Supplemental lease information is as follows:

Leases	Classification	March 29, 2025		September 28, 2024
Operating leases:
Operating lease right-of-use assets	Right-of-use assets	$	567	$	602
Current operating lease liabilities	Other current liabilities		114		122
Noncurrent operating lease liabilities	Operating lease liability		468		495
Finance leases:
Finance lease right-of-use assets	Property, plant, and equipment, net	$	24	$	27
Current finance lease liability	Current portion of long-term debt		9		6
Noncurrent finance lease liabilities	Long-term debt, less current portion		17		23

Index

7. Long-Term Debt

Long-term debt consists of the following:

Facility	Maturity Date	March 29, 2025			September 28, 2024
Term loan	July 2029	$	995		$	1,538
Revolving line of credit	June 2028		—			—
1.00% First Priority Senior Secured Notes ^(a)	January 2025		—			783
1.57% First Priority Senior Secured Notes	January 2026		1,525			1,525
4.875% First Priority Senior Secured Notes	July 2026		750			750
1.65% First Priority Senior Secured Notes	January 2027		400			400
1.50% First Priority Senior Secured Notes ^(a)	January 2027		406			419
5.50% First Priority Senior Secured Notes	April 2028		500			500
5.80% First Priority Senior Secured Notes	June 2031		800			800
5.65% First Priority Senior Secured Notes	January 2034		800			800
4.50% Second Priority Senior Secured Notes^(b)	February 2026		291			291
5.625% Second Priority Senior Secured Notes	July 2027		500			500
Debt discounts and deferred fees			(24	)		(31	)
Finance leases and other	Various		36			40
Total long-term debt			6,979			8,315
Current portion of long-term debt			(1,535	)		(810	)
Long-term debt, less current portion		$	5,444		$	7,505

^(a)	Euro denominated

^(b)	Indicates debt which has been classified as long-term debt in accordance with the Company's ability and intention to refinance such obligations on a long-term basis.

Debt discounts and deferred financing fees are presented net of long-term debt, less the current portion on the Consolidated Balance Sheets and are amortized to Interest expense, net on the Consolidated Statements of Income through maturity.

On January 15, 2025, the Company fully repaid the 1.00% First Priority Senior Secured Notes due January 2025 utilizing cash on hand.

8. Financial Instruments and Fair Value Measurements

In the normal course of business, the Company is exposed to certain risks arising from business operations and economic factors. The Company may use derivative financial instruments to help manage market risk and reduce the exposure to fluctuations in interest rates and foreign currencies. These financial instruments are not used for trading or other speculative purposes.

Cross-Currency Swaps

The Company is party to certain cross-currency swaps to hedge a portion of our foreign currency risk. Both the euro (€1,625 million) and pound sterling (£700 million) swap agreements mature June 2026. In addition to cross-currency swaps, we hedge a portion of our foreign currency risk by designating foreign currency denominated long-term debt as net investment hedges of certain foreign operations. As of March 29, 2025, we had outstanding long-term debt of €375 million that was designated as a hedge of our net investment in certain euro-denominated foreign subsidiaries. When valuing cross-currency swaps the Company utilizes Level 2 inputs (substantially observable).

Interest Rate Swaps

The primary purpose of the Company’s interest rate swap activities is to manage interest expense variability associated with our outstanding variable rate term loan debt. When valuing interest rate swaps the Company utilizes Level 2 inputs (substantially observable).

As of March 29, 2025, the Company effectively had (i) a $450 million interest rate swap transaction that swaps a one-month variable SOFR contract for a fixed annual rate of 4.553% and (ii) a $500 million interest rate swap transaction that swaps a one-month variable SOFR contract for a fixed annual rate of 4.648%, both of which expire in June 2029.

Index

The Company records the fair value positions of all derivative financial instruments on a net basis by counterparty for which a master netting arrangement is utilized. Balances on a gross basis are as follows:

Derivative Instruments	Hedge Designation	Balance Sheet Location	March 29, 2025		September 28, 2024
Cross-currency swaps	Not designated	Other long-term liabilities		52		—
Cross-currency swaps	Designated	Other long-term liabilities		152		271
Interest rate swaps	Designated	Other long-term assets		—		—
Interest rate swaps	Designated	Other long-term liabilities		37		75
Interest rate swaps	Not designated	Other long-term assets		—		—
Interest rate swaps	Not designated	Other long-term liabilities		45		62

The effect of the Company’s derivative instruments on the Consolidated Statements of Income is as follows:

		Quarterly Period Ended						Two Quarterly Periods Ended
Derivative Instruments	Statements of Income Location	March 29, 2025			March 30, 2024			March 29, 2025			March 30, 2024
Cross-currency swaps	Interest expense	$	(4	)	$	(10	)	$	(8	)	$	(20	)
Interest rate swaps	Interest expense		(5	)		(21	)		(11	)		(42	)
Cross-currency swaps	Other expense (income)		(25	)		—			(51	)		—

Non-recurring Fair Value Measurements

The Company has certain assets that are measured at fair value on a non-recurring basis when impairment indicators are present or when the Company completes an acquisition. The Company adjusts certain long-lived assets to fair value only when the carrying values exceed the fair values. The categorization of the framework used to value the assets is considered Level 3, due to the subjective nature of the unobservable inputs used to determine the fair value. These assets that are subject to our annual impairment analysis primarily include our definite lived and indefinite lived intangible assets, including Goodwill and our property, plant and equipment. The Company reviews Goodwill and other indefinite lived assets for impairment as of the first day of the fourth fiscal quarter each year and more frequently if impairment indicators exist. The Company determined Goodwill and other indefinite lived assets were not impaired in our annual fiscal 2024 assessment. No impairment indicators were identified in the current quarter.

Included in the following tables are the major categories of assets measured at fair value on a non-recurring basis as of March 29, 2025 and September 28, 2024, along with the impairment loss recognized on the fair value measurement during the period:

	As of March 29, 2025
	Level 1		Level 2		Level 3		Total		Impairment
Indefinite-lived trademarks	$	—	$	—	$	207	$	207	$	—
Goodwill		—		—		4,173		4,173		—
Definite lived intangible assets		—		—		970		970		—
Property, plant, and equipment		—		—		3,534		3,534		1
Total	$	—	$	—	$	8,884	$	8,884	$	1

	As of September 28, 2024
	Level 1		Level 2		Level 3		Total		Impairment
Indefinite-lived trademarks	$	—	$	—	$	207	$	207	$	—
Goodwill		—		—		4,295		4,295		—
Definite lived intangible assets		—		—		1,086		1,086		—
Property, plant, and equipment		—		—		3,627		3,627		8
Total	$	—	$	—	$	9,215	$	9,215	$	8

The Company’s financial instruments consist primarily of cash and cash equivalents, long-term debt, interest rate and cross-currency swap agreements, and finance lease obligations. The book value of our marketable long-term indebtedness exceeded fair value by $30 million as of March 29, 2025. The Company’s long-term debt fair values were determined using Level 2 inputs (substantially observable).

Index

9. Income Taxes

On a year-to-date comparison to the statutory rate, the effective tax rate was impacted by foreign rate differential and other discrete items.

10. Segment and Geographic Data

Operating segments are defined as components of an enterprise that are evaluated regularly by the Company’s chief operating decision maker (“CODM”), which is our Chief Executive Officer. The Company’s operations historically included four reportable segments: Consumer Packaging International, Consumer Packaging North America, Flexibles, and Health, Hygiene & Specialties. The structure is designed to align us with our customers, provide improved service, and drive future growth in a cost- efficient manner.

Berry's reportable segments were impacted by the divestiture of the HHNF business. As a result of classifying the HHNF business as discontinued operations, Berry is now comprised of three reportable segments: Consumer Packaging International, Consumer Packaging North America, and Flexibles. The financial information reported for Consumer Packaging International, Consumer Packaging North America, and Flexibles are presented in the following tables:

	Quarterly Period Ended				Two Quarterly Periods Ended
	March 29, 2025		March 30, 2024		March 29, 2025		March 30, 2024
Net sales:
Consumer Packaging International	$	970	$	969	$	1,855	$	1,885
Consumer Packaging North America		789		751		1,558		1,450
Flexibles		761		799		1,492		1,517
Total net sales	$	2,520	$	2,519	$	4,905	$	4,852
Operating income:
Consumer Packaging International	$	69	$	5	$	97	$	34
Consumer Packaging North America		69		75		128		135
Flexibles ^(a)		253		102		318		178
Total operating income	$	391	$	182	$	543	$	347
Depreciation and amortization:
Consumer Packaging International	$	81	$	81	$	159	$	161
Consumer Packaging North America		57		57		115		114
Flexibles		32		33		66		66
Total depreciation and amortization	$	170	$	171	$	340	$	341

(a) Flexibles operating income includes $175 million gain from the sale of the Tapes business (see Note 4).

Selected information by geographical region is presented in the following tables:

	Quarterly Period Ended				Two Quarterly Periods Ended
	March 29, 2025		March 30, 2024		March 29, 2025		March 30, 2024
Net sales:
United States and Canada	$	1,424	$	1,422	$	2,840	$	2,759
Europe		968		978		1,808		1,858
Rest of world		128		119		257		235
Total net sales	$	2,520	$	2,519	$	4,905	$	4,852

Index

11. Contingencies and Commitments

The Company is party to various legal proceedings involving routine claims which are incidental to its business. Although the Company’s legal and financial liability with respect to such proceedings cannot be estimated with certainty, we believe that any ultimate liability would not be material to our financial position, results of operations or cash flows.

The Company has various purchase commitments for raw materials, supplies, and property and equipment incidental to the ordinary conduct of business.

12. Basic and Diluted Earnings Per Share

Basic net income or earnings per share ("EPS") is calculated by dividing the net income attributable to common stockholders by the weighted-average number of common shares outstanding during the period, without consideration for common stock equivalents.

Diluted EPS includes the effects of options and restricted stock units, if dilutive.

The following tables provide a reconciliation of the numerator and denominator of the basic and diluted EPS calculations:

	Quarterly Period Ended				Two Quarterly Periods Ended
(in millions, except per share amounts)	March 29, 2025		March 30, 2024		March 29, 2025		March 30, 2024
Numerator
Consolidated net income	$	193	$	116	$	207	$	175
Denominator
Weighted average common shares outstanding - basic		116.0		115.6		115.7		115.6
Dilutive shares		3.4		2.6		3.1		2.9
Weighted average common and common equivalent shares outstanding - diluted		119.4		118.2		118.8		118.5

Per common share earnings (loss)
Basic	$	1.66	$	1.00	$	1.79	$	1.51
Diluted		1.62		0.98		1.74		1.48

No shares were excluded from the diluted EPS calculation for either of the quarterly and two quarterly periods ended March 29, 2025. 2.2 million and 2.3 million shares were excluded for the quarterly and two quarterly periods ended March 30, 2024, respectively.

Index

13. Accumulated Other Comprehensive Loss

The components and activity of Accumulated other comprehensive loss are as follows:

Quarterly Period Ended	Currency Translation			Defined Benefit Pension and Retiree Health Benefit Plans			Derivative Instruments			Accumulated Other Comprehensive Loss
Balance at December 28, 2024	$	(243	)	$	(46	)	$	14		$	(275	)
Other comprehensive income (loss) before reclassifications		94			—			(7	)		87
Net amount reclassified		—			—			(9	)		(9	)
Balance at March 29, 2025	$	(149	)	$	(46	)	$	(2	)	$	(197	)

	Currency Translation			Defined Benefit Pension and Retiree Health Benefit Plans			Derivative Instruments			Accumulated Other Comprehensive Loss
Balance at December 30, 2023	$	(201	)	$	(84	)	$	11		$	(274	)
Other comprehensive income (loss) before reclassifications		(70	)		—			27			(43	)
Net amount reclassified		—			—			(9	)		(9	)
Balance at March 30, 2024	$	(271	)	$	(84	)	$	29		$	(326	)

Two Quarterly Periods Ended	Currency Translation			Defined Benefit Pension and Retiree Health Benefit Plans			Derivative Instruments			Accumulated Other Comprehensive Loss
Balance at September 28, 2024	$	(229	)	$	(44	)	$	(22	)	$	(295	)
Other comprehensive income (loss) before reclassifications		(91	)		(2	)		29			(64	)
Net amount reclassified		—			—			(9	)		(9	)
Spin-off of HHNF business		171			—			—			171
Balance at March 29, 2025	$	(149	)	$	(46	)	$	(2	)	$	(197	)

	Currency Translation			Defined Benefit Pension and Retiree Health Benefit Plans			Derivative Instruments			Accumulated Other Comprehensive Loss
Balance at September 30, 2023	$	(340	)	$	(84	)	$	88		$	(336	)
Other comprehensive income (loss) before reclassifications		69			—			(38	)		31
Net amount reclassified		—			—			(21	)		(21	)
Balance at March 30, 2024	$	(271	)	$	(84	)	$	29		$	(326	)

Index

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

Executive Summary

Business. The Company’s operations are organized into three operating segments: Consumer Packaging International, Consumer Packaging North America, and Flexibles. The structure is designed to align us with our customers, provide optimal service, drive future growth, and to facilitate synergy realization. The Consumer Packaging International segment primarily consists of closures and dispensing systems, pharmaceutical devices and packaging, bottles and canisters, containers, and technical components. The Consumer Packaging North America segment primarily consists of containers and pails, food service, closures, bottles and prescription vials, and tubes. The Flexibles segment primarily consists of stretch and shrink films, converter films, institutional can liners, food and consumer films, retail bags and agriculture films.

Raw Material Trends. Our primary raw material is polymer resin. While temporary industry-wide shortages have occurred, we have historically been able to manage the supply chain disruption by working closely with our suppliers and customers. Changes in the price of polymer resin are generally passed on to customers through contractual price mechanisms over time, during contract renewals and other means.

Outlook. The Company is affected by general economic and industrial growth, raw material availability, cost inflation, supply chain disruptions, and general consumption levels. Our business has both geographic and end market diversity, which reduces the effect of any one of these factors on our overall performance. Our results are affected by our ability to pass through raw material and other cost changes to our customers, improve manufacturing productivity, and adapt to volume changes of our customers. Despite global macro-economic challenges in the short-term attributed to continued rising inflation and general market softness, we continue to believe our underlying long-term fundamentals in all divisions remain strong.

Results of Operations

Comparison of the Quarterly Period Ended March 29, 2025 (the “Quarter”) and the Quarterly Period Ended March 30, 2024 (the “Prior Quarter”)

Business integration expenses consist of restructuring and impairment charges, acquisition and divestiture related costs, and other business optimization costs. Tables present dollars in millions.

Consolidated Overview
	Quarter		Prior Quarter		$ Change			% Change
Net sales	$	2,520	$	2,519	$	1			—
Cost of goods sold		2,018		2,019		(1	)		—
Other operating expenses		111		318		(207	)		(65	%)
Operating income	$	391	$	182	$	209			115	%

Net Sales: Net sales are basically flat quarter over quarter. Net sales increased due to increased selling prices of $50 million due to the pass through of higher polymer costs and 2% organic volume growth, offset by net sales attributed to divestitures of $62 million.

Cost of goods sold: Cost of goods sold is flat quarter over quarter. Consistent with net sales, cost of goods sold were impacted by higher raw material prices and increased costs associated with increased volumes, partially offset by costs associated with divested businesses.

Other operating expenses: The other operating expenses decrease is primarily attributed to a $175 million gain, net of transaction costs, recognized in the current year from the divestiture of the Tapes business, as well as higher business integration costs in the Prior Quarter from the 2023 cost savings initiative, which is winding down in the current year.

Operating Income: The operating income increase is primarily attributed to a $7 million favorable impact from volume increases, a $41 million decline in business integration expenses, and the $175 million gain from the divestiture of the Tapes business, partially offset by loss income from the divested business.

Index

Consumer Packaging International
	Quarter		Prior Quarter		$ Change		% Change
Net sales	$	970	$	969	$	1		—
Operating income	$	69	$	5	$	64		1,280	%

Net sales: Net sales are essentially flat year over year in the Consumer Packaging International segment, primarily attributed to increased selling prices of $32 million from higher raw material costs and 1% organic volume growth, partially offset by a $20 million decline from divestitures and 2% negative impact from currency declines against the US dollar.

Operating income: The operating income increase is primarily attributed to a $9 million favorable impact from price cost spread and a $58 million decline in business integration expenses from the 2023 cost savings initiative, which is winding down in the current year.

Consumer Packaging North America
	Quarter		Prior Quarter		$ Change			% Change
Net sales	$	789	$	751	$	38			5	%
Operating income	$	69	$	75	$	(6	)		(8	)%

Net sales: The net sales increase in the Consumer Packaging North America segment is primarily attributed to 2% organic volume growth and higher selling prices of $9 million.

Operating income: The operating income decrease is primarily attributed to a negative impact from price cost spread partially offset by a favorable impact from organic volume growth.

Flexibles
	Quarter		Prior Quarter		$ Change			% Change
Net sales	$	761	$	799	$	(38	)		(5	)%
Operating income	$	253	$	102	$	151			148	%

Net sales: The net sales decline in the Flexibles segment is primarily attributed to a $58 million decline from the divested Tapes business, partially offset by increased selling prices of $9 million, and 2% organic volume growth.

Operating income: The operating income increase is primarily attributed to the $175 million gain from the divestiture of the Tapes business, partially offset by loss income from the divested Tapes business.

Changes in Comprehensive Income

The $207 million improvement in comprehensive income from the Prior Quarter is primarily attributed to a $164 million favorable change in currency translation and a $34 million unfavorable change in the fair value of derivative instruments, net of tax, partially offset by a $77 million improvement in net income. Currency translation changes are primarily related to non-U.S. subsidiaries with a functional currency other than the U.S. dollar whereby assets and liabilities are translated from the respective functional currency into U.S. dollars using period-end exchange rates. The change in currency translation in the Quarter was primarily attributed to locations utilizing the Euro and British pound sterling as their functional currency. As part of overall risk management, the Company uses derivative instruments to reduce (i) exposure to changes in interest rates attributed to the Company’s borrowings and (ii) foreign currency exposure to translation of certain foreign operations. The Company records changes to the fair value of these instruments in Accumulated other comprehensive loss. The change in fair value of these instruments is primarily attributed to the change in the forward interest and foreign exchange curves between measurement dates.

Index

Comparison of the Two Quarterly Periods Ended March 29, 2025 (the “YTD”) and the Two Quarterly Periods Ended March 30, 2024 (the “Prior YTD”)

Business integration expenses consist of restructuring and impairment charges, acquisition and divestiture related costs, and other business optimization costs. Tables present dollars in millions.

Consolidated Overview
	YTD		Prior YTD		$ Change			% Change
Net sales	$	4,905	$	4,852	$	53			1	%
Cost of goods sold		3,947		3,922		25			1	%
Other operating expenses		415		583		(168	)		(29	%)
Operating income	$	543	$	347	$	196			56	%

Net Sales: The net sales increase is primarily attributed to increased selling prices of $84 million due to the pass through of higher polymer costs and a 2% volume increase partially offset by net sales attributed to divestitures of $84 million.

Cost of goods sold: The cost of goods sold increase is primarily attributed to higher raw material prices and increased costs associated with increased volumes, partially offset by costs associated with divested business.

Other operating expenses: The other operating expense decrease is primarily attributed to a $175 million gain, net of transaction costs, recognized in the current year from the divestiture of the Tapes business, partially offset by transaction costs associated with the proposed merger with Amcor.

Operating Income: The operating income increase is primarily attributed to a $16 million favorable impact from price cost spread, $14 million from improved volumes and the $175 million gain from the divestiture of the Tapes business, partially offset by transaction costs associated with the proposed merger with Amcor.

Consumer Packaging International
	YTD		Prior YTD		$ Change			% Change
Net sales	$	1,855	$	1,885	$	(30	)		(2	)%
Operating income	$	97	$	34	$	63			185	%

Net sales: The net sales decline in the Consumer Packaging International segment is primarily attributed to a $56 million decline from divestitures in the prior YTD and a $23 million unfavorable impact from foreign currency changes partially offset by increased selling prices of $36 million and a 1% volume increase.

Operating income: The operating income increase is primarily attributed to a $24 million favorable impact from price cost spread and a $46 million decline in business integration expenses from the 2023 cost savings initiative, which is winding down in the current year, as reflected in the YTD.

Consumer Packaging North America
	YTD		Prior YTD		$ Change			% Change
Net sales	$	1,558	$	1,450	$	108			7	%
Operating income	$	128	$	135	$	(7	)		(5	)%

Net sales: The net sales increase in the Consumer Packaging North America segment is primarily attributed to increased selling prices of $32 million and a 3% volume increase.

Operating income: The operating income decrease is primarily attributed to a $10 million increase in business integration expenses, $5 million from negative price cost spread, partially offset by a $9 million favorable impact from volume growth.

Index

Flexibles
	YTD		Prior YTD		$ Change			% Change
Net sales	$	1,492	$	1,517	$	(25	)		(2	)%
Operating income	$	318	$	178	$	140			79	%

Net sales: The net sales decline in the Flexibles segment is primarily attributed to sales from the divested Tapes business of $56 million, partially offset by increased selling prices of $16 million and a 1% volume increase.

Operating income: The operating income increase is primarily attributed to a $175 million gain from the divestiture of the Tapes business, partially offset by loss of income from the divested business.

Changes in Comprehensive Income

The $51 million decline in comprehensive income from the Prior YTD is primarily attributed to a $160 million unfavorable change in currency translation, a $79 million favorable change in the fair value of derivative instruments, net of tax, and a $32 million improvement in net income. Currency translation changes are primarily related to non-U.S. subsidiaries with a functional currency other than the U.S. dollar whereby assets and liabilities are translated from the respective functional currency into U.S. dollars using period-end exchange rates. The change in currency translation in the YTD is primarily attributed to locations utilizing the Euro and British pound sterling as their functional currency. As part of its overall risk management, the Company uses derivative instruments to reduce (i) exposure to changes in interest rates attributed to the Company’s borrowings and (ii) foreign currency exposure to translation of certain foreign operations. The Company records changes to the fair value of these instruments in Accumulated other comprehensive loss. The change in fair value of these instruments is primarily attributed to the change in the forward interest and foreign exchange curves between measurement dates.

Liquidity and Capital Resources

Senior Secured Credit Facility

We manage our global cash requirements considering (i) available funds among the many subsidiaries through which we conduct business, (ii) the geographic location of our liquidity needs, and (iii) the cost to access international cash balances. At the end of the Quarter, the Company had no outstanding balance on its $800 million asset-based revolving line of credit that matures in June 2028. The Company was in compliance with all covenants under the senior secured credit facility at the end of the Quarter.

Cash Flows

Net cash used in operating activities increased $321 million from the Prior YTD, primarily attributed to higher working capital.

Net cash from investing activities increased $415 million from the Prior YTD, primarily attributed to the proceeds from business divestitures in the YTD and a decrease in capital spend.

Net cash used in financing activities decreased $45 million from the Prior YTD, primarily attributed to lower share repurchases partially offset by higher repayments of long-term debt in the YTD.

Dividend Payments

The Company declared and paid a cash dividend of $0.31 per share during each of the first two quarters of fiscal 2025.

Share Repurchases

During the YTD, the Company did not repurchase any of its shares. The Company has $321 million remaining under its repurchase plan.

Index

Free Cash Flow

Our consolidated free cash flow for the YTD and Prior YTD are summarized as follows:

	March 29, 2025			March 30, 2024
Cash flow from operating activities	$	(321	)	$	—
Additions to property, plant and equipment, net		(257	)		(292	)
Free cash flow	$	(469	)	$	(247	)

We use free cash flow as a supplemental measure of liquidity as it assists us in assessing our ability to fund growth through generation of cash. Free cash flow may be calculated differently by other companies, including other companies in our industry or peer group, limiting its usefulness on a comparative basis. Free cash flow is not a financial measure presented in accordance with generally accepted accounting principles ("GAAP") and should not be considered as an alternative to any other measure determined in accordance with GAAP.

Liquidity Outlook

At March 29, 2025, our cash balance was $483 million, a majority of which is located outside the U.S. We believe our existing U.S. based cash and cash flow from U.S. operations, together with available borrowings under our senior secured credit facilities, will be adequate to meet our short-term and long-term liquidity needs except for funds needed to cover all long-term debt obligations, which we intend to refinance prior to maturity. The Company has the ability to repatriate the cash located outside the U.S. to the extent not needed to meet operational and capital needs without significant restrictions.

Summarized Guarantor Financial Information

Berry Global, Inc. (“Issuer”) has notes outstanding which are fully, jointly, severally, and unconditionally guaranteed by its parent, Berry Global Group, Inc. (for purposes of this section, “Parent”) and substantially all of Issuer’s domestic subsidiaries. Separate narrative information or financial statements of the guarantor subsidiaries have not been included because they are 100% owned by Parent and the guarantor subsidiaries unconditionally guarantee such debt on a joint and several basis. A guarantee of a guarantor subsidiary of the securities will terminate upon the following customary circumstances: the sale of the capital stock of such guarantor if such sale complies with the indentures, the designation of such guarantor as an unrestricted subsidiary, the defeasance or discharge of the indenture or in the case of a restricted subsidiary that is required to guarantee after the relevant issuance date, if such guarantor no longer guarantees certain other indebtedness of Issuer. The guarantees of the guarantor subsidiaries are also limited as necessary to prevent them from constituting a fraudulent conveyance under applicable law and any guarantees guaranteeing subordinated debt are subordinated to certain other of the Company’s debts. Parent also guarantees Issuer’s term loans and revolving credit facilities. The guarantor subsidiaries guarantee our term loans and are co-borrowers under our revolving credit facility.

Presented below is summarized financial information for the Parent, Issuer and guarantor subsidiaries on a combined basis, after intercompany transactions have been eliminated.

	Two Quarterly Periods Ended
	March 29, 2025
Net sales	$	2,732
Gross profit		556
Earnings from continuing operations		270
Net income	$	270

Includes $43 million of income associated with intercompany activity with non-guarantor subsidiaries.

Index

	March 29, 2025		September 28, 2024
Assets
Current assets	$	1,343	$	1,775
Noncurrent assets		2,382		5,553

Liabilities
Current liabilities	$	1,092	$	2,081
Intercompany payable		2,882		1,115
Noncurrent liabilities		8,032		8,843

Item 3. Quantitative and Qualitative Disclosures about Market Risk

Interest Rate Risk

We are exposed to market risk from changes in interest rates primarily through our senior secured credit facilities and accounts receivable supply chain finance factoring programs. Our senior secured credit facilities comprise (i) $1.0 billion in term loans and (ii) an $800 million revolving credit facility with no borrowings outstanding. Borrowings under our senior secured credit facilities bear interest at a rate equal to an applicable margin plus SOFR. The applicable margin for SOFR rate borrowings under the revolving credit facility ranges from 1.25% to 1.50%, and the margin for the term loans is 1.75% per annum. As of period end, the SOFR rate of approximately 4.34% was applicable to the term loans. A change of 0.25% on these floating interest rate exposures would increase our annual interest expense by approximately $1 million.

We seek to minimize interest rate volatility risk through regular operating and financing activities and, when deemed appropriate, through the use of derivative financial instruments. These financial instruments are not used for trading or other speculative purposes. (See Note 8.)

Foreign Currency Risk

As a global company, we face foreign currency risk exposure from fluctuating currency exchange rates, primarily the U.S. dollar against the euro, British pound sterling, Chinese renminbi and Canadian dollar. Significant fluctuations in currency rates can have a substantial impact, either positive or negative, on our revenue, cost of sales, and operating expenses. Currency translation gains and losses are primarily related to non-U.S. subsidiaries with a functional currency other than U.S. dollars whereby assets and liabilities are translated from the respective functional currency into U.S. dollars using period-end exchange rates and impact our Comprehensive income. A 10% decline in foreign currency exchange rates would have had a $6 million unfavorable impact on our Net income for the two quarterly periods ended March 29, 2025. (See Note 8.)

Index

Item 4. Controls and Procedures

(a) Evaluation of disclosure controls and procedures.

Under applicable Securities and Exchange Commission regulations, management of a reporting company, with the participation of the principal executive officer and principal financial officer, must periodically evaluate the company’s “disclosure controls and procedures,” which are defined generally as controls and other procedures of a reporting company designed to ensure that information required to be disclosed by the reporting company in its periodic reports filed with the commission (such as this Form 10-Q) is recorded, processed, summarized, and reported on a timely basis.

The Company’s management, with the participation of the Chief Executive Officer and the Chief Financial Officer, carried out an evaluation of the effectiveness of the design and operation of the disclosure controls and procedures as of the end of the period covered by this report. Based on this evaluation, our Chief Executive Officer and Chief Financial Officer concluded that the design and operation of our disclosure controls and procedures were effective at the reasonable assurance level as of the end of the period covered by this report.

(b) Changes in internal control over financial reporting.

There were no changes in our internal control over financial reporting that occurred during the Quarter that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

Part II. Other Information

Item 1. Legal Proceedings

There have been no material changes in legal proceedings from the items disclosed in our most recent Form 10-K filed with the Securities and Exchange Commission.

Item 1A. Risk Factors

Before investing in our securities, we recommend that investors carefully consider the risks described in our most recent Form 10-K and subsequent periodic reports filed with the Securities and Exchange Commission, including those under the heading “Risk Factors” and other information contained in this Quarterly Report. Realization of any of these risks could have a material adverse effect on our business, financial condition, cash flows and results of operations.

Additionally, we caution readers that the list of risk factors discussed in our most recent Form 10-K and subsequent periodic reports may not contain all of the material factors that are important to you. In addition, in light of these risks and uncertainties, the matters referred to in the forward-looking statements contained in this report may not in fact occur. Accordingly, readers should not place undue reliance on those statements.

Index

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

Issuer Repurchases of Equity Securities

During the quarter, the Company did not repurchase any shares. As of March 29, 2025, $321 million of authorized shares remained available to purchase under our fiscal 2023 board authorization to repurchase up to $1 billion of shares of common stock.

Item 5. Other Information

Rule 10b5-1 Plan Elections

No officers or directors, as defined in Rule 16a-1(f), adopted, modified and/or terminated a "Rule 10b5-1 trading arrangement" or a "non-Rule 10b5-1 trading arrangement," as defined in Regulation S-K Item 408, during the second quarter of fiscal 2025.

Item 6. Exhibits

Exhibit No.		Description of Exhibit

4.1		First Supplemental Indenture, dated March 5, 2025, between Berry Global, Inc. and U.S. Bank Trust Company, National Association, relating to the 1.50% First Priority Senior Secured Notes due 2027 (incorporated by reference to Exhibit 4.1 to the Company's Form 8-K filed on March 5, 2025).
4.2		Second Supplemental Indenture, dated March 5, 2025, between Berry Global, Inc. and U.S. Bank Trust Company, National Association, relating to the 1.65% First Priority Senior Secured Notes due 2027 (incorporated by reference to Exhibit 4.2 to the Company's Form 8-K filed on March 5, 2025).
4.3		Second Supplemental Indenture, dated March 5, 2025, between Berry Global, Inc. and U.S. Bank Trust Company, National Association, relating to the 5.50% First Priority Senior Secured Notes due 2028 (incorporated by reference to Exhibit 4.3 to the Company's Form 8-K filed on March 5, 2025).
4.4		First Supplemental Indenture, dated March 5, 2025, between Berry Global, Inc. and U.S. Bank Trust Company, National Association, relating to the 5.800% First Priority Senior Secured Notes due 2031 (incorporated by reference to Exhibit 4.4 to the Company's Form 8-K filed on March 5, 2025).
4.5		Second Supplemental Indenture, dated March 5, 2025, between Berry Global, Inc. and U.S. Bank Trust Company, National Association, relating to the 5.650% First Priority Senior Secured Notes due 2034 (incorporated by reference to Exhibit 4.5 to the Company's Form 8-K filed on March 5, 2025).
22.1*		Subsidiary Guarantors.
31.1*		Rule 13a-14(a)/15d-14(a) Certification of the Chief Executive Officer.
31.2*		Rule 13a-14(a)/15d-14(a) Certification of the Chief Financial Officer.
32.1**		Section 1350 Certification of the Chief Executive Officer.
32.2**		Section 1350 Certification of the Chief Financial Officer.
101.INS		Inline XBRL Instance Document (the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document).
101.SCH		Inline XBRL Taxonomy Extension Schema Document.
101.CAL		Inline XBRL Taxonomy Extension Calculation Linkbase Document.
101.DEF		Inline XBRL Taxonomy Extension Definition Linkbase Document.
101.LAB		Inline XBRL Taxonomy Extension Label Linkbase Document.
101.PRE		Inline XBRL Taxonomy Extension Presentation Linkbase Document.
104		Cover Page Interactive Date File (formatted as Inline XBRL and contained in Exhibit 101).

*	Filed herewith

**	Furnished herewith

Index

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	Berry Global Group, Inc.

April 30, 2025	By:	/s/ Mark W. Miles
		Mark W. Miles
		Chief Financial Officer

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Date	Price Target	Rating	Analyst
11/25/2024	$76.00	Neutral	Citigroup
11/25/2024	$70.00 → $76.00	Overweight	Analyst
11/22/2024	$75.00	Buy → Neutral	UBS
9/4/2024	$76.00	Equal-Weight	Morgan Stanley
4/16/2024	$68.00 → $65.00	Outperform → Neutral	Robert W. Baird
3/27/2024	$75.00 → $68.00	Buy → Hold	Truist
3/15/2024	$72.00 → $62.00	Outperform → Sector Perform	RBC Capital Mkts
3/1/2024		Peer Perform	Wolfe Research

SEC Form 10-Q filed by Berry Global Group Inc.

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