05.05.16
CCL Industries Inc. reported its first quarter fionancial rsults for 2016. Sales for the first quarter of 2016 increased 22.8% to $866.8 million, compared to $705.9 million for the first quarter of 2015, with 4.5% organic growth, 6.5% positive currency translation impact and 11.8% from the 11 acquisitions completed since Dec. 31, 2014.
Operating incomefor the first quarter of 2016 was $149.9 million, an increase of 28.0% compared to $117.1 million for the comparable quarter of 2015. Excluding the impact of currency translation, operating income improved 21.8%. Net earnings attributable to shareholders of the company improved 32.0% to $89.9 million for the 2016 first quarter compared to $68.1 million for the 2015 first quarter.
“Record quarterly results were driven by strong organic growth in our legacy CCL Label businesses, especially in North America and Emerging Markets, and CCL Container,” said Geoffrey T. Martin, president and CEO. “Cost savings, new product initiatives and pricing added strong profit improvement at Avery despite lower sales compared to a robust prior year period. Our first quarter acquisitions enhance capabilities and broaden geographic reach for CCL Label and bring new products to Avery. Recent acquisitions diluted operating margins but performed to expectations. So far into the second quarter order intake levels continue solid across all business lines and geographies.
“Despite closing five acquisitions during the first quarter, CCL’s leverage ratioremains a modest 1.1 times EBITDA,” Martin added. “Our December 2015 enhanced credit facility has current undrawn capacity of US$563 million, giving CCL ample capacity to execute future growth plans including both bolt-on and transformative acquisitions.”
Operating incomefor the first quarter of 2016 was $149.9 million, an increase of 28.0% compared to $117.1 million for the comparable quarter of 2015. Excluding the impact of currency translation, operating income improved 21.8%. Net earnings attributable to shareholders of the company improved 32.0% to $89.9 million for the 2016 first quarter compared to $68.1 million for the 2015 first quarter.
“Record quarterly results were driven by strong organic growth in our legacy CCL Label businesses, especially in North America and Emerging Markets, and CCL Container,” said Geoffrey T. Martin, president and CEO. “Cost savings, new product initiatives and pricing added strong profit improvement at Avery despite lower sales compared to a robust prior year period. Our first quarter acquisitions enhance capabilities and broaden geographic reach for CCL Label and bring new products to Avery. Recent acquisitions diluted operating margins but performed to expectations. So far into the second quarter order intake levels continue solid across all business lines and geographies.
“Despite closing five acquisitions during the first quarter, CCL’s leverage ratioremains a modest 1.1 times EBITDA,” Martin added. “Our December 2015 enhanced credit facility has current undrawn capacity of US$563 million, giving CCL ample capacity to execute future growth plans including both bolt-on and transformative acquisitions.”