Revenue Analysis
Total and Operating Revenue: BERY’s Total Revenue shows growth over the three reported quarters in 2023, increasing from $2,859 billion in March, to $3,087 billion in September, and reaching $3,229 billion in June. The Operating Revenue matches the Total Revenue, indicating all revenue is from core operations.
Gross Profit Margins: Gross Profit has similarly increased from $606 million in March to $606 million in September, and $580 million in June. This suggests that although revenue increased, Gross Profit Margins varied slightly due to changes in the Cost of Revenue.
Cost Management
Cost of Revenue: The Cost of Revenue was highest in June 2023 at $2,649 billion, followed by $2,481 billion in September, and $2,682 billion in March. This correlates with the changes in Total Revenue.
Operating Expense: Operating Expense was relatively stable across the quarters, with slight variations: $295 million in December, $277 million in September, and $276 million in June.
Total Expenses: Total Expenses have increased from $2,962 billion in March to $2,758 billion in September, and $2,925 billion in June, tracking closely with revenue and cost management efforts.
Profitability Analysis
EBITDA: EBITDA remained robust, starting at $500 million in March, peaking at $523 million in September, and adjusting to $463 million in June.
Operating Income: Operating Income showed growth from $301 million in March to $329 million in September, and then a decrease to $304 million in June.
Pretax Income: Pretax Income was $221 million in March, $205 million in September, and then $178 million in June.
Net Income: Net Income figures were $174 million in March, $186 million in September, and $143 million in June, indicating a decrease towards the latter half of the year.
Cash Flow Indicators
Reconciled Depreciation: Reconciled Depreciation was stable, showing no large fluctuations across the quarters, ranging from $200 million in March to $214 million in December.
Interest Expense: Interest Expense was consistent at approximately $79 million in all quarters, indicating consistent financing costs relative to other financial metrics.
Taxation
Tax Rate: The Tax Rate fluctuated across the quarters, starting at 21.267% in March and ending at 19.178% in December.
Tax Provision: The Tax Provision was highest in March at $47 million, then $19 million in September, and $35 million in June, aligning with the trends in Pretax Income.
Tax Effect of Unusual Items: There was a negative tax effect attributed to unusual items, with significant variances across different quarters, illustrating non-recurring tax adjustments.
Shareholder Metrics
Diluted and Basic EPS: EPS both Diluted and Basic varied across quarters. The highest EPS was reported in September with a Diluted EPS of 1.55 and a Basic EPS of 1.59.
Average Shares: There was an increase in both Diluted Average Shares from 118.3 million in December to 122.5 million in March and Basic Average Shares from 115.6 million in December to 120.7 million in March, indicating share dilution.
Net Income Available to Common Stockholders: This metric remained consistent with the reported Net Income, showing no discrepancies or special allocations.
Conclusion
Overall, BERY demonstrated a sound financial performance with consistent revenue growth and stable profitability throughout 2023. However, the decrease in Net Income and fluctuating Gross Profit Margins in the latter quarters could point to underlying challenges in cost management and operational efficiency. The stable cash flow indicators and manageable tax provisions should assist in long-term strategic planning.