In the second fiscal quarter of 2022, Berry Global reported net sales of $3.8 billion, a 12% increase. The net sales growth is primarily attributed to increased selling prices of $576 million due to the pass through of inflation. This increase was partially offset by an organic volume decline of 2%, a $64 million unfavorable impact from foreign currency changes, extra shipping days in the prior quarter of $19 million, and prior quarter divestiture sales of $14 million. The volume decline is primarily attributed to supply chain disruptions and the moderation of advantaged products related to the Covid-19 pandemic.

Net sales in the Health, Hygiene & Specialties division were $822 million. The net sales growth is primarily attributed to increased selling prices of $82 million due to the pass through of higher costs, partially offset by a 3% volume decline, and a $10 million unfavorable impact from foreign currency changes. The volume decline is primarily attributed to the moderation of advantaged products related to the Covid-19 pandemic.

Berry’s Chairman and CEO Tom Salmon comments, “For the second fiscal quarter, we reported record revenue of $3.8 billion, an increase of 31% on a two-year basis, as underlying demand for our products remained resilient. We delivered two-year organic volume growth of 3% led primarily by market growth and supported by our organic investments in our Health, Hygiene, & Specialties and Consumer Packaging segments. Adjusted earnings per share came in better than our expectation in the quarter and increased by an impressive 21% on a two-year basis. Organic volumes, operating EBITDA, and cash flow, all finished in line with expectations, despite being impacted by considerable inflation in many of our input costs.

“As we navigate the current environment, we remain highly focused on cost productivity and are continuing to increase prices to offset rising input costs. We continue to prudently invest in each of our businesses to maintain and grow our world-class, low-cost manufacturing base, with an emphasis on organic growth and key growth markets and regions. The continued positive momentum from our investments in areas such as health and wellness, e-commerce, and food safety drive our business toward more sustainable packaging solutions and provide us with a path to deliver long-term, consistent, volume and earnings growth.”