Trade Resources Company News Berry Plastics Group Reports Third Quarter Fiscal 2016 Results

Berry Plastics Group Reports Third Quarter Fiscal 2016 Results

Berry Plastics Group reported results for its third fiscal 2016 quarter, referred to in the following as the June 2016 quarter.

Highlights

  • Reported record net sales of $1,645 million for the June 2016 quarter compared to $1,241 million in the June 2015 quarter
  • Recorded operating income of $179 million in the June 2016 quarter, an increase of 48 percent compared to the prior year quarter
  • Posted Operating EBITDA of $316 million (19.2 percent of net sales) in the June 2016 quarter compared to $219 million (17.6 percent of net sales) in the prior year quarter
  • Generated $206 million of cash flow from operations in the June 2016 quarter compared to $180 million in the prior year quarter
  • Increased adjusted free cash flow by 8 percent to $151 million in the June 2016 quarter resulting in a total of $475 million for the four quarters ended June 2016
  • Recorded net income of $96 million or $0.76 per diluted share and increased adjusted net income per diluted share by 61 percent in the quarter to $0.82
  • Increased our fiscal year 2016 Operating EBITDA guidance to $1,200 million and reaffirmed our adjusted free cash flow guidance of $475 million

"The third fiscal quarter was another strong performance period for Berry during which we achieved record net sales for any quarterly period while Operating EBITDA surpassed any June ending quarter in the Company’s history. I am pleased to report that Operating EBITDA margins also increased by 160 basis points to 19.2% in the current quarter. Additionally we generated solid adjusted free cash flow in the quarter of $151 million bringing our adjusted free cash flow for the last four quarters to $475 million,” said Jon Rich, Chairman and CEO of Berry Plastics.

June 2016 Quarter Results

For the June 2016 quarter, the Company recorded net sales of $1,645 million compared to $1,241 million in the same prior year period. The year-over-year increase was primarily attributed to net sales from the acquisition of AVINTIV, Inc. (“Avintiv”) partially offset by a $31 million decline in selling prices, a decrease in base volumes and a $4 million negative impact from foreign currency changes.

For the June 2016 quarter, the Company had operating income of $179 million compared to $121 million in the same prior year quarter. The 48 percent year-over-year increase was primarily attributed to the acquisition of Avintiv and a $32 million improvement in our product mix and price/cost spread including contributions from sourcing synergies and a $4 million reduction in business integration expenses. These positive contributions were partially offset by a $3 million increase in depreciation and amortization expense, $5 million from base volume declines, and $5 million of increased costs in manufacturing.

June 2016 Fiscal Year-to-Date (FYTD) Results

For the June 2016 FYTD, the Company recorded net sales of $4,871 million compared to $3,685 million in the same prior fiscal year. The year-over-year increase was primarily attributed to the acquisition of Avintiv partially offset by a $237 million decline in selling prices due to the pass-through of lower resin prices and $56 million negative impact from foreign currency changes.

For the June 2016 FYTD, the Company had operating income of $430 million compared to $301 million in the same prior fiscal year. The 43 percent year-over-year increase was primarily attributed to a $95 million improvement in our product mix and price/cost spread including contributions from sourcing synergies, the acquisition of Avintiv, and $9 million from net productivity improvements in manufacturing. These positive contributions were partially offset by a $39 million increase in depreciation and amortization expense primarily related to purchase accounting adjustments associated with the Avintiv acquisition, a $9 million increase in selling, general, and administrative expenses, an $8 million increase in business integration and restructuring costs along with a $6 million negative impact from foreign currency changes.

Source: http://packagingmaterials.packaging-business-review.com/news/berry-plastics-group-reports-third-quarter-fiscal-2016-results-4975081
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