US-based packaging manufacturer Berry has reported net sales of $3.3 billion in the second quarter (Q2) of fiscal 2023 (FY23), compared to $3.77 billion in Q2 FY22. The company’s operating income was $301 million and earnings per share was $1.42 under GAAP standards. Meanwhile, under non-GAAP standards, the company's operating EBITDA was $541 million, with adjusted earnings per share of $1.96.

Berry attributed the net sales decline to a 6 per cent volume decline, decreased selling prices of $143 million due to lower resin costs, an $80 million unfavourable impact from foreign currency changes, and prior quarter divestiture sales of $42 million. The volume decline was due to general market softness and ongoing inventory destocking, the company said in a media release.

Berry's consumer packaging international segment reported a net sales decline, primarily attributed to a $57 million unfavourable impact from foreign currency changes, a 5 per cent volume decline, and prior quarter divestiture sales of $42 million. The consumer packaging North America segment also saw a net sales decline due to decreased selling prices of $80 million and a 3 per cent volume decline.

The health, hygiene, and specialties segment reported a net sales decline primarily attributed to a 9 per cent volume decline and decreased selling prices of $64 million. Meanwhile, the engineered materials segment reported a decline in net sales primarily attributed to decreased selling prices of $75 million, a 7 per cent volume decline, and an unfavourable impact from foreign currency changes.

“Our business delivered solid second quarter and first half results with adjusted earnings per share growth of 4 per cent and 7 per cent, respectively. During the past several quarters, we have seen supply chain constraints continue to ease, prioritised structural cost improvements, and continued our efforts to pivot our portfolio to high-value growth products across all of our businesses,” said Tom Salmon, chairman and CEO.