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. Click Read More below for additional information.
Berry Global Group, Inc. (NYSE: BERY) announced its new commercial-scale clean room for blown film, supporting its growing healthcare business in rigorous healthcare and pharmaceutical applications.
The ISO 7 class clean room can produce nine-layer blown films. The new installation fully encloses commercial-scale production of Berry’s proprietary nine-layer blown film from extrusion to packaging, a first in the United States. The addition further enhances Berry’s ability to supply more sensitive applications such as sterile intravenous solution bags, pharmaceutical packaging, medical equipment manufacturing, and microchip packaging.
Significant Customer Benefits
Installed in Berry’s existing Dalton, Georgia, facility, the clean room provides a controlled environment, complete with FDA-approved lubricants and contact surfaces, and a 100 percent inspection system for real-time defect detection for quality assurance. Berry’s new clean room installation reduces foreign particulates by up to 99.9 percent compared to a conventional production environment. Customers will benefit from Berry’s globally recognized expertise in material science, combining multiple layers for optimal product performance and reliability for the most delicate applications. In addition, the newly installed blown film line can be monitored remotely, upholding the integrity of the clean room.
“The addition of the United States’ first commercial-scale, fully enclosed clean room manufacturing provides customers with optimal product safety for the specific needs of healthcare and pharmaceutical applications,” said Curt Begle, President of Berry’s Health, Hygiene, and Specialties Division. “This enhanced capability, paired with our unmatched supply reliability, means customers can benefit from a dependable supply of films for the most sensitive of applications, allowing customers to avoid recalls and potential waste due to package contaminants.”
New, High-Performing Films
In combination with the clean room introduction, Berry adds Optym™ PURE to its portfolio of high-performing films for medical device packaging. As an extension of the Company’s existing Optym™, Optym PURE offers ultra-clean packaging films produced in a clean room environment. Unique among its peers, Berry is the only manufacturer to provide this nine-layer blown film from a clean room environment. With Optym PURE, customers will benefit from Berry’s proprietary nine-layer forming web, which balances high-value and cost-effective materials for maintained performance at a competitive price.
With sustainability in mind, Optym PURE is downgauged in comparison to existing structures by 25 percent. The new film pairs with Berry’s advanced sealant technology for a wider seal window. As a longtime expert in healthcare and hygiene film manufacturing, Berry continues to expand its portfolio to provide customers with world-class capabilities in their respective local markets.