02.04.19
Bemis Company, Inc. reported financial results for its fourth quarter and year ended Dec. 31, 2018.
“We delivered strong earnings and operating cash flow improvement in 2018. Our Agility plan to fix, strengthen, and grow Bemis is progressing well and benefiting our business,” said William F. Austen, Bemis Company’s president and CEO.
On Aug. 6, 2018, Bemis announced a plan for an all-stock combination with Amcor to create the global leader in consumer packaging.
“We believe combining these two organizations will drive significant value for shareholders, employees, and customers over the long-term,” Austen said. “As announced in our press release last week, we anticipate the transaction will close in the second quarter of 2019. We look forward to creating the global leader in consumer packaging through this transaction.”
U.S. Packaging net sales of $660.4 million for the fourth quarter of 2018 represented an increase of 2.7% compared to the same period of 2017. The increase in net sales was driven by price and mix. Compared to the prior fourth quarter, unit volumes were down approximately 1%, driven by the company’s planned exit of infant care business at its Shelbyville, TN facility.
U.S. Packaging operating profit was $89.7 million in the fourth quarter of 2018, or 13.6% of net sales, compared to $89.3 million, or 13.9% of net sales, in 2017.
U.S. Packaging net sales of $2,698.5 million for the full year 2018 represented an increase of 2.8% compared to 2017. The increase in net sales was driven by price and mix. Compared to the prior year, unit volumes were down approximately 1%, driven by the company’s planned exit of infant care business at its Shelbyville, TN facility.
U.S. Packaging operating profit increased to $360.2 million for the full year 2018, or 13.3% of net sales, compared to $352.5 million, or 13.4% of net sales, in 2017.
Latin America Packaging net sales of $152.4 million for the fourth quarter of 2018 represented a decrease of 14.7% compared to the same period of 2017. Currency translation and the impact of implementing high inflation accounting in the company’s business in Argentina decreased net sales by 22.6%.
Latin America Packaging operating profit increased to $7.8 million in the fourth quarter of 2018, or 5.1% of net sales, compared to $6.2 million, or 3.5% of net sales, in 2017.
Latin America Packaging net sales of $628.6 million for the full year 2018 represented a decrease of 11.6% compared to the full year of 2017. Latin America Packaging operating profit increased to $32.8 million for the full year 2018 compared to $30 million in 2017.
Rest of World Packaging net sales of $190 million for the fourth quarter of 2018 represented an increase of 4.6% compared to the fourth quarter of 2017. Rest of World Packaging operating profit increased to $23.8 million in the fourth quarter of 2018, or 12.5% of net sales, compared to $15.4 million, or 8.5% of net sales, in 2017.
Rest of World Packaging net sales of $762.8 million for the full year 2018 represented an increase of 7.6% compared to the full year of 2017. The acquisition of Evadix increased net sales by 0.9%. Organic sales growth of 4.3% reflects increased price and mix and increased unit volumes of approximately 3%, driven by strength in the company’s healthcare packaging business.
Rest of World Packaging operating profit for the full year 2018 was $81.2 million, compared to $61.1 million for the same period in 2017.
Cash flow from operations for the 12 months ended Dec. 31, 2018, was $461.5 million, compared to $379 million in the prior year. Increased profit and working capital improvements contributed to the increase in cash flow from operations.
Total company net debt to adjusted EBITDA was 2.2 times at Dec. 31, 2018.
“We delivered strong earnings and operating cash flow improvement in 2018. Our Agility plan to fix, strengthen, and grow Bemis is progressing well and benefiting our business,” said William F. Austen, Bemis Company’s president and CEO.
On Aug. 6, 2018, Bemis announced a plan for an all-stock combination with Amcor to create the global leader in consumer packaging.
“We believe combining these two organizations will drive significant value for shareholders, employees, and customers over the long-term,” Austen said. “As announced in our press release last week, we anticipate the transaction will close in the second quarter of 2019. We look forward to creating the global leader in consumer packaging through this transaction.”
U.S. Packaging net sales of $660.4 million for the fourth quarter of 2018 represented an increase of 2.7% compared to the same period of 2017. The increase in net sales was driven by price and mix. Compared to the prior fourth quarter, unit volumes were down approximately 1%, driven by the company’s planned exit of infant care business at its Shelbyville, TN facility.
U.S. Packaging operating profit was $89.7 million in the fourth quarter of 2018, or 13.6% of net sales, compared to $89.3 million, or 13.9% of net sales, in 2017.
U.S. Packaging net sales of $2,698.5 million for the full year 2018 represented an increase of 2.8% compared to 2017. The increase in net sales was driven by price and mix. Compared to the prior year, unit volumes were down approximately 1%, driven by the company’s planned exit of infant care business at its Shelbyville, TN facility.
U.S. Packaging operating profit increased to $360.2 million for the full year 2018, or 13.3% of net sales, compared to $352.5 million, or 13.4% of net sales, in 2017.
Latin America Packaging net sales of $152.4 million for the fourth quarter of 2018 represented a decrease of 14.7% compared to the same period of 2017. Currency translation and the impact of implementing high inflation accounting in the company’s business in Argentina decreased net sales by 22.6%.
Latin America Packaging operating profit increased to $7.8 million in the fourth quarter of 2018, or 5.1% of net sales, compared to $6.2 million, or 3.5% of net sales, in 2017.
Latin America Packaging net sales of $628.6 million for the full year 2018 represented a decrease of 11.6% compared to the full year of 2017. Latin America Packaging operating profit increased to $32.8 million for the full year 2018 compared to $30 million in 2017.
Rest of World Packaging net sales of $190 million for the fourth quarter of 2018 represented an increase of 4.6% compared to the fourth quarter of 2017. Rest of World Packaging operating profit increased to $23.8 million in the fourth quarter of 2018, or 12.5% of net sales, compared to $15.4 million, or 8.5% of net sales, in 2017.
Rest of World Packaging net sales of $762.8 million for the full year 2018 represented an increase of 7.6% compared to the full year of 2017. The acquisition of Evadix increased net sales by 0.9%. Organic sales growth of 4.3% reflects increased price and mix and increased unit volumes of approximately 3%, driven by strength in the company’s healthcare packaging business.
Rest of World Packaging operating profit for the full year 2018 was $81.2 million, compared to $61.1 million for the same period in 2017.
Cash flow from operations for the 12 months ended Dec. 31, 2018, was $461.5 million, compared to $379 million in the prior year. Increased profit and working capital improvements contributed to the increase in cash flow from operations.
Total company net debt to adjusted EBITDA was 2.2 times at Dec. 31, 2018.