Berry Global’s net sales in the first fiscal quarter of 2024 were $2.9 billion, down from $3.06 billion in the first fiscal quarter of 2023.

The net sales decline is primarily attributed to decreased selling prices of $189 million due to the pass through of lower polymer costs and a 3% volume decline from continued general market softness, partially offset by a $64 million favorable impact from foreign currency changes.

Net sales in the Health, Hygiene & Specialties segment were $603 million in the first fiscal quarter of 2024, down from $663 million in the first fiscal quarter of 2023.

The net sales decline in the Health, Hygiene & Specialties segment is primarily attributed to decreased selling prices of $64 million and a 2% volume decline from softer demand in hygiene and specialty markets, partially offset by a $17 million favorable impact from foreign currency changes and improved demand in its disinfectant markets.

In other news, on Feb. 7, the company announced plans for a tax-free spin-off and merger of the majority of its HH&S segment to include its global nonwovens and films business with Glatfelter Corporation (“GLT”) which will create a global leader in specialty materials. Upon the completion of the transaction, Berry is expected to own approximately 90% of the newly combined company. The transaction is expected to value the combined company at $3.6 billion on an enterprise value basis. The transaction is subject to certain customary closing conditions and regulatory approvals including, but not limited to, approval by GLT shareholders, the effective filing of related registration statements, completion of a tax-free spin-off and receipt of certain required anti-trust approvals.

“This announcement is the culmination of a comprehensive review to determine the highest value alternative for Berry shareholders. We believe these two businesses can drive significant value for their respective stakeholders with more focused portfolios, positioning each for greater success. Berry will now become a pure-play leading supplier of innovative, sustainable global packaging solutions and we believe this focus will result in an even more predictable, stable earnings and growth profile for Berry. This proposed transaction is a significant step in the optimization of our portfolio and allows Berry’s management team to be one hundred percent laser-focused on driving consistent long-term growth with a more simplified and aligned portfolio. In conjunction with this announcement and our continued evolution of driving positive product mix inside our Engineered Materials segment into higher value products, we are renaming this segment today, to Flexibles,” states Kevin Kwilinski, Berry’s CEO.