Berry Global Tops Sales Record in First Fiscal 2020 Quarter
Berry Global’s net sales jumped 43% to more than $2.8 billion for fiscal 2020 first quarter, due primarily to continued strong performance in the Consumer Packaging-North America segment, as well as the RPC acquisition.
Berry Global Group, Inc. recently reported its fiscal first quarter 2020 results (i.e., the December 2019 quarter). Net sales jumped 43% to more than $2.8 billion for the quarter, due primarily to continued strong performance in the Consumer Packaging-North America segment, as well as the RPC acquisition.
“During the quarter we achieved record net sales and operating EBITDA for any December quarterly period in the company’s history,” said Tom Salmon, chairman and CEO. “Overall, our results and organic growth progression were consistent with our expectations. I am pleased by the continued performance of our North American Consumer Packaging division, delivering its seventh consecutive quarter of positive organic volume growth, recording 3% volume growth in this December quarter. Additionally, both our Health, Hygiene & Specialties and Engineered Materials divisions reported sequential volume improvement as expected. Our Consumer Packaging International segment has gotten off to a solid start, with cost synergy realization on plan and commercial activities to drive long-term growth, well under way. The integration of RPC continues to move forward and our synergy targets remain on track.
“Our financial profile remains strong and will continue to be enhanced as we deliver synergies and benefits from our RPC acquisition coupled with our organic growth improvement initiatives. The acquisition of RPC has transformed the company, creating a leading global manufacturer with an unmatched, diversified global product offering and delivery capability, creating significant value for our customers. Further, through our combined collaboration and know-how in material science, product development, and manufacturing technologies we truly are an innovative thought leader when it comes to designing for sustainability.”
Berry Global reports that its first quarter 2020 net sales increase included revenue from the acquisition of RPC of almost $1.1 billion, as well as continued positive organic volumes in the North American Consumer Packaging business. These positives were partially offset by lower selling prices of $183 million due to the pass-through of lower resin costs, as well as the divested sales of the Seal for Life (SFL) business of $28 million.
The Consumer Packaging-International segment delivered net sales of over $1 billion in the December 2019 quarter. The net sales growth in the segment is primarily attributed to acquisition net sales from the RPC acquisition.
In the Consumer Packaging-North America segment, net sales were $680 million, a 13% increase compared to the December 2018 quarter. The net sales growth in the segment is primarily attributed to the addition of the North American rigid business from the RPC acquisition of $116 million, along with better-than-expected organic volume growth of 3%, partially offset by lower selling prices of $55 million due to the pass-through of lower resin costs.
The Engineered Materials segment delivered net sales of $585 million in the December 2019 quarter. The decline in the segment was primarily attributed to lower selling prices of $61 million due to the pass-through of lower resin costs and a 3% expected base volume decline.
In the Health, Hygiene & Specialties segment, net sales dropped to $541 million. The net sales decline in the segment is primarily attributed to lower selling prices of $67 million due to the pass-through of lower resin costs, prior quarter sales of $28 million related to the divested SFL business, and the customer product transition in hygiene. Excluding the customer product transition, organic sales volume was flat for the quarter.
Additional details are available at www.berryglobal.com.
Looking for a reprint of this article?
From high-res PDFs to custom plaques, order your copy today!
