Berry Global Group Reports 3Q Fiscal 2017 Results

Berry Global Group, Inc. reported results for its third fiscal 2017 quarter.
 
Net income for the June 2017 quarter was $107 million ($0.79 per diluted share) compared to $96 million ($0.76 per diluted share) in the prior year quarter. Adjusted net income per diluted share in the June 2017 quarter was 13% higher at $0.93 compared to $0.82 in the prior year quarter.
 
Net sales increased 16% over the prior year quarter and was a quarterly record at $1.906 billion. Operating income for the quarter increased by 18% to a quarterly record of $212 million compared to $179 million in the prior year quarter. Operating EBITDA was also a quarterly record at $364 million (19.1% of net sales), an increase of 15% compared to the June 2016 quarter.
 
Cash flow from operations for the last four quarters ended June 2017 was $870 million, and adjusted free cash flow for the same period was $554 million. Berry Global is reaffirming its fiscal 2017 guidance of projected cash flow from operations of $925 million and adjusted free cash flow of $550 million.
 
“This continues to be an exciting year for Berry as we celebrate our 50th year in business while also achieving a milestone in the quarter with our placement into the Fortune 500. We achieved quarterly records for net sales and operating EBITDA and continued our work integrating the AEP acquisition. Adjusted free cash flow improved 20%, and adjusted net income per diluted share was also 13% higher at 93 cents,” said Tom Salmon, CEO of Berry.
 
The net sales increase of $261 million from the prior year quarter is primarily attributed to acquisition net sales of $295 million and selling price increases of $49 million due to the pass through of higher resin prices, partially offset by a negative $76 million impact from base volume declines and a $8 million negative impact from foreign currency changes.