05.03.18
In the second fiscal quarter of 2018, Berry Global’s net sales increased 9% to $2 billion. 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.
Health, Hygiene, and Specialties’ net sales increased $109 million from the prior year quarter primarily attributed to acquisition net sales of $72 million, selling price increases of $15 million due to the pass through of higher resin prices, and a $31 million favorable impact from foreign currency changes, partially offset by a 1% base volume decline.
Commenting on the quarter, Tom Salmon, chairman and CEO of Berry states, “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% and operating EBITDA improved by 17% compared to the prior year quarter. Within our Health, Hygiene & Specialties division, excluding South America, our nonwoven product volumes grew +2% compared to the prior year quarter. Further, we believe the addition of the Clopay Plastic Products Company, Inc. 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.”
Health, Hygiene, and Specialties’ net sales increased $109 million from the prior year quarter primarily attributed to acquisition net sales of $72 million, selling price increases of $15 million due to the pass through of higher resin prices, and a $31 million favorable impact from foreign currency changes, partially offset by a 1% base volume decline.
Commenting on the quarter, Tom Salmon, chairman and CEO of Berry states, “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% and operating EBITDA improved by 17% compared to the prior year quarter. Within our Health, Hygiene & Specialties division, excluding South America, our nonwoven product volumes grew +2% compared to the prior year quarter. Further, we believe the addition of the Clopay Plastic Products Company, Inc. 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.”
