Berry Global Group, Inc. Reports Second Quarter Fiscal 2018 Results
Berry Global Group, Inc. (NYSE:BERY) today reported results for its second fiscal 2018 quarter, referred to in the following as the March 2018 quarter.
Highlights (all comparisons made to the March 2017 quarter)
Net income per diluted share increased 22 percent to $0.66.
Adjusted net income per diluted share up 12 percent to $0.84.
Net sales increased 9 percent to $2.0 billion.
Operating income increased by 7 percent to $188 million.
Operating EBITDA was $350 million, an increase of 4 percent.
Increased annual cost synergy expectation relating to the Clopay acquisition to $40 million.
Reaffirmed guidance for fiscal year 2018 cash flow from operations of $1,007 million and adjusted free cash flow of $630 million.
Commenting on the quarter, Tom Salmon, Chairman and Chief Executive Officer of Berry stated, “I am proud to report we had March quarterly records for net sales, operating EBITDA, and adjusted earnings per share of $1 billion $967 million, $350 million and $0.84, respectively.
“We had another solid quarter of sales and earnings in our Engineered Materials division as net sales increased 6 percent and operating EBITDA improved by 17 percent compared to the prior year quarter. Within our Health, Hygiene & Specialties division, excluding South America, our nonwoven product volumes grew +2 percent compared to the prior year quarter. Further, we believe the addition of the Clopay Plastic Products Company, Inc.(“Clopay”) provides an enhanced product offering that reduces cost and provides improved performance in our global hygiene films offerings. Based on our progress to-date, we are increasing our annual cost synergy target to $40 million from our original guidance of $20 million when we announced the deal. Additionally our Consumer Packaging division saw strength in foodservice products from quick service restaurants and convenience stores. We continue to partner with certain customers in our core foodservice product portfolio to address unmet needs and continue to make investments introducing technologically advanced solutions to the market at a lower cost with improved functionality and sustainability.”
March 2018 Quarter Results
The net sales increase of $161 million from the prior year quarter was primarily attributed to acquisition net sales of $106 million, selling price increases of $59 million due to the pass through of higher resin prices, and a $34 million favorable impact from foreign currency changes, partially offset by a 2% base volume decline.
The operating income increase of $13 million from the prior year quarter was primarily attributed to acquisition operating income of $20 million, a $13 million decrease in selling, general and administrative expense due to synergies and cost reductions, a $7 million decrease in depreciation and amortization, and a $5 million favorable impact from foreign currency changes, partially offset by a $22 million negative impact from under recovery of higher cost of goods sold, and a $7 million negative impact from lower base volumes, and a $3 million increase in business integration expenses.
more detail at: http://ir.berryplastics.com/phoenix.zhtml?c=192781&p=irol-newsArticle&ID=2346694