04.23.19
Bemis Company, Inc. reported financial results for its first quarter ended March 31, 2019. The company recorded $1,001.4 million in sales for the first quarter of 2019, with an operating profit of $123.5 million.
“We delivered another strong earnings quarter,” said William F. Austen, Bemis Company’s president and CEO. “All operating segments performed within our range of expectations and met our Agility objectives. Our US business remains strong, reflected in increased sales volume and operating profit compared to one year ago; we continue to strengthen our operations and lay the foundation for long-term growth through our short-run business initiatives.
“Our Latin American business continues to execute cost improvements while the business laps the impact of the conversion of certain laundry detergent packaging,” Austen added. “Our Rest of World business remains very strong, reflected in operating profit margins that increased 200 basis points versus last year, driven by organic sales growth in our healthcare packaging business and solid operational performance across the segment.”
On Aug. 6, 2018, Bemis announced a plan for an all-stock combination with Amcor to create the global leader in consumer packaging with the footprint, scale, talent, and capabilities to better serve customers around the world.
“The Bemis Board unanimously supports our pending combination with Amcor and believes it maximizes value for our stakeholders,” said Timothy M. Manganello, chairman of the board of Bemis Company. “On behalf of the Board, I thank Bill Austen and his team for their strong leadership, thoughtful guidance, and true dedication to Bemis and our associates over the years.”
US Packaging net sales of $668.9 million for the first quarter of 2019 increased by 0.4% compared to the first quarter of 2018. US Packaging operating profit was $91.5 million in the first quarter of 2019, or 13.7% of net sales, compared to $87.2 million, or 13.1% of net sales, in the first quarter of 2018.
Latin America Packaging net sales of $142.1 million for the first quarter of 2019 decreased by 16.1% compared to the first quarter of 2018. Currency translation and the impact of implementing high inflation accounting in the company’s business in Argentina decreased net sales by 20.3%. Latin America Packaging operating profit increased to $11.9 million in the first quarter of 2019, or 8.4% of net sales, compared to $8.0 million, or 4.7% of net sales, in 2018.
Rest of World Packaging net sales of $190.4 million for the first quarter of 2019 decreased by 0.8% compared to the first quarter of 2018. Rest of World Packaging operating profit increased to $20.1 million in the first quarter of 2019, or 10.6% of net sales, compared to $16.5 million, or 8.6% of net sales, in 2018.
Cash flow from operations for the three months ended March 31, 2019, was $1.5 million, compared to $54.3 million the prior year. Total company net debt to adjusted EBITDA was 2.3 times on March 31, 2019.