Berry Global Group, Inc. Reports Strong Third Quarter 2020 Results

Third Quarter Highlights (all comparisons made to the June 2019 quarter):
*Net sales up 50 percent to $2.9 billion
*Operating income up 61 percent to $347 million
*Operating EBITDA up 67 percent to $581 million
*Net income per diluted share up significantly to $1.42
*Adjusted net income per diluted share increase of 69 percent to $1.52
*RPC Group Plc (“RPC”) integration and synergy realization progressing ahead of plan
*Increased fiscal year 2020 cash flow from operations and free cash flow guidance to $1.45 billion and $830 million, respectively

Berry’s Chairman and CEO, Tom Salmon said, “Through our employees’ relentless effort and dedication, along with our diverse, stable portfolio, we were able to deliver record earnings for any quarter in the Company’s history. We have made progress and remain focused on our top three financial objectives of improving our strong balance sheet, organically growing our businesses, and integrating the RPC acquisition as demonstrated in this recently completed quarter.

“I am happy to report we generated a June quarterly record for net sales of over $2.9 billion, up 50 percent compared to the prior year quarter. Operating income increased 61 percent to $347 million while Operating EBITDA was a record for any quarter in the Company’s history at $581 million. Our adjusted earnings per share increased 69 percent to $1.52, and we reported a significant improvement in quarterly free cash flow, bringing our four quarters ended free cash flow to over $1 billion.

“For the June 2020 quarter, overall organic volumes for our legacy Berry businesses were up 2 percent. Our Health, Hygiene & Specialties segment recorded strong volume growth of 14 percent related to our recent investments, our targeted market approach, along with COVID-19 related benefits in our healthcare portfolio. Excluding COVID-19 benefits, we believe the business delivered high-single digit growth in the quarter. We are very proud of our teams in achieving their objectives of delivering profitable and sustainable growth. Our Consumer Packaging-North American business recorded flat volume for the quarter with strength in healthcare, household cleaning and grocery offset by softness in food service and industrial markets. We remain encouraged by the momentum of the Division with a continued growing revenue pipeline. Our Engineered Materials business saw volume declines of 8 percent in the quarter driven by headwinds related to COVID-19. Many of the products in that business are sold through distribution to schools, offices, or restaurants, to name a few end markets, which saw more contracted demand than our more consumer facing businesses. Excluding COVID-19, we believe the business would have grown low-single digits.

“Our financial profile remains solid as we have a strong liquidity position with over $900 million of cash at the end of the quarter as well as an undrawn $850 million asset-based line of credit representing nearly $1.8 billion of liquidity. Also, we have no financial maintenance covenants or near-term debt maturities.”

Consolidated Overview
The net sales growth is primarily attributed to acquisition net sales of $1,092 million and a base volume increase of 2 percent. These increases were partially offset by lower selling prices of $99 million due to the pass through of lower resin costs, a $19 million unfavorable impact from foreign currency changes and Prior Quarter divestiture sales of $34 million.

The operating income increase is primarily attributed to acquisition operating income of $111 million, a $34 million favorable impact from cost productivity and product mix, a $12 million increase due to the base volume growth, and a $6 million decrease in depreciation and amortization. These improvements were partially offset by a $10 million increase in business integration costs, a $5 million unfavorable impact from foreign currency changes and Prior Quarter divestiture operating income of $9 million.
details at: http://ir.berryglobal.com/news-releases/news-release-details/berry-global-group-inc-reports-strong-third-quarter-2020-results

Related Posts

Caraustar Announces a $50 Per Ton Price Increase on All Uncoated Recycled Paperboard (URB) Grades

Caraustar Industries, Inc. announced a price increase of $50 per ton on all uncoated recycled paperboard (URB) grades. The increase on the uncoated recycle board grades will be effective starting with shipments on July 9, 2018. The increase is in response to strong market dynamics and inflationary cost pressures in transportation, chemicals and other recycled paperboard input materials.

Mayr-Melnhof Karton acquires Kotkamills

The Mayr-Melnhof Group has reached an agreement to acquire Kotkamills Group Oyj from the previous owners for an enterprise value of around EUR 425 million; this corresponds to approximately 7.8 times the EBITDA of the last twelve months. With the takeover of Kotkamills, MM Karton will expand its position in the attractive market for virgin fiber board (FBB) and Food Service Board (FSB) and complement its established market position in recycled cardboard. The planned transaction will have an immediate impact on earnings. Kotkamills operates two cardboard/paper machines at the integrated location in Kotka (southern Finland): one FBB / FSB cardboard machine, which was commissioned in 2016 after an investment of more than 180 million EUR, with a current sales volume of around 260,000 t and one planned capacity of 400,000 t; a machine for Saturated Kraft Paper / impregnation paper with a capacity of 170,000 t, which makes the company one of the world's leading suppliers. Kotkamills employs around 500 people and in the last twelve months achieved an EBITDA of around EUR 55 million on sales of around EUR 380 million.

Aptar Tops the Forbes Green Growth 50 List

Aptar announced that it has been ranked #1 on Forbes’ Green Growth 50 2021 inaugural list. As part of the Green Growth 50, Forbes is highlighting large American corporations that have managed to cut their greenhouse gas emissions, while simultaneously growing earnings. “We are honored to be recognized with the #1 spot on the Green Growth 50 list by Forbes. This is a tremendous recognition of our progress to both drive earnings growth and become a more sustainable, diverse and inclusive company that is focused on furthering a circular economy. In fact, it is these very efforts that help grow our business.” said Stephan B. Tanda, Aptar’s President and CEO. “We look at everything we do through a sustainability lens because our patients, customers and consumers are actively seeking more sustainable solutions.”
Back To Top
×Close search
Search