Berry Global Group Reports 2Q Fiscal 2017 Results

Berry Global Group, Inc. reported results for its second fiscal 2017 quarter, referred to in the following as the March 2017 quarter.
 
Net income for the March 2017 quarter was $72 million ($0.54 per diluted share) compared to $59 million ($0.47 per diluted share) in the prior year quarter. Adjusted net income in the March 2017quarter was 36% higher at $0.79 per diluted share compared to $0.58 per diluted share in the prior year quarter.
 
Net sales increased 12% over the prior year quarter and was a quarterly record at $1 billion 806 million. Operating income for the quarter increased to $175 million compared to $165 million in the prior year quarter. Operating EBITDA was also a quarterly record at $336 million (18.6% of net sales).
 
Cash flow from operations for the last four quarters ended March 2017 was $829 million, and adjusted free cash flow for the same period was $524 million.
 
“I am pleased to report that we had another quarter of record financial results. Milestones for both revenue and operating EBITDA were achieved of $1 billion, $806 million and $336 million, respectively. Adjusted free cash flow improved 36% to $122 million, and adjusted net income was also 36% higher at 79 cents per diluted share,” said Tom Salmon, CEO of Berry.
 
The net sales increase of $192 million from the prior year quarter is primarily attributed to acquisition net sales of $205 million related to the AEP Industries, Inc. acquisition and selling price increases of $9 million, partially offset by a negative $15 million impact from a 1% volume decline and a $7 million negative impact from foreign currency changes.
 
Cash from operating activities was $190 million for the March 2017 quarter and $829 million for the last four quarters ended March 2017. The company’s adjusted free cash flow for the last four quarters ended was $524 million. Total debt less cash and cash equivalents at the end of the March 2017 quarter was $5,755 million. Adjusted EBITDA for the four quarters ended April 1, 2017 was $1,387 million.
 
“Looking ahead, we will continue our focus on reducing our leverage ratio to a goal of below 4, on or before the end of fiscal 2017. Additionally, we remain excited about our recent acquisition of AEP, and the results to date have validated our expectations of the synergy potential and scale advantages through the combined businesses,” stated Salmon.