Berry Global Reports 1Q 2019 Results

Berry Global Group, Inc. reported its first quarter 2019 results, referred to in the following as the December 2018 quarter.
 
Net sales increased 11% to $2 billion, with organic sales growth, which excludes currency and acquisition effects, up 3%. Operating income is up 8% to $176 million, with operating EBITDA up 7% to $331 million.
 
“I am proud to report we had another quarter of solid financial results as we generated record results for any December quarterly period for most of our primary operating metrics,” Tom Salmon, chairman and CEO of Berry said. “Net sales increased 11% to $2 billion, with organic sales growth of 3%. Additionally, operating EBITDA was also a quarterly record at $331 million up 7% from the prior year and our adjusted net income per diluted share December quarterly record of $0.77 was an increase of 15% compared to the prior year quarter.
 
“Specifically, by segment, our Consumer Packaging division delivered strong organic sales growth of 9% in the quarter, which was led by our foodservice products,” Salmon added. “Within our Health, Hygiene & Specialties division, we recorded strong quarterly sales dollar growth of 22% as well as a 21% improvement in Operating EBITDA, including the impact of the Clopay acquisition. Inside our Engineered Materials division, we recorded quarterly sales dollar growth of 3% as well as a 7% improvement in Operating EBITDA, including the impact of the recently completed acquisition of Laddawn.”
 
Berry’s cash flow from operating activities increased by 5% to $161 million for the quarter ended December 2018 compared to $153 million in the prior year quarter. Adjusted free cash flow for the last four quarters ended December 2018 was $679 million.
 
The company’s total debt less cash and cash equivalents at the end of the December 2018 quarter was $5,444 million. Adjusted EBITDA for the four quarters ended Dec. 29, 2018 was $1,439 million.