Berry Plastics Touts Sales Record
(photo courtesy Berry Plastics)
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As a subscriber you can listen to articles at work, in the car, or while you work out. Subscribe NowEvansville-based Berry Plastics Group Inc. (NYSE: BERY) says record quarterly sales have driven a big turn to profit. The manufacturer is reporting fiscal third quarter net income of $96 million, compared to a $13 million loss in the same period last year.
Berry Plastics says net sales exceeded $1.6 billion in the quarter.
Chief Executive Officer Jon Rich says "the third fiscal quarter was another strong performance period for Berry during which we achieved record net sales for any quarterly period while Operating EBITDA surpassed any June ending quarter in the Company’s history. I am pleased to report that Operating EBITDA margins also increased by 160 basis points to 19.2 percent in the current quarter. Additionally we generated solid adjusted free cash flow in the quarter of $151 million bringing our adjusted free cash flow for the last four quarters to $475 million."
The company adds that year-to-date operating income increased more than 40 percent, compared to the same stretch in the last fiscal year. Berry Plastics attributes much of the rise to a $95 million improvement from sources including product mix, synergies, the acquisition of Avintiv and $9 million from boosted manufacturing productivity.
Rich says the company is also adjusting its outlook for fiscal 2016. "Given our continued strong performance in the recent quarter, we are increasing our Operating EBITDA guidance for the full 2016 fiscal year an additional $10 million to $1,200 million. We continue to target $475 million of adjusted free cash for fiscal 2016 with the forecasted improvement in Operating EBITDA being offset primarily by incremental cash taxes and timing of interest payments. The $475 million of projected adjusted free cash flow assumes $817 million of cash flow from operations less $285 million of capital spending and the $57 million payment under our tax receivable agreement."
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