Berry Global is set to acquire RPC Group Plc, which is expected to close early in Q3 of this year, said the company in a press release.
The net sales decrease of $17 million from prior year quarter is primarily attributed to organic sales decrease of $72 million and a $22 million unfavourable impact from foreign currency changes, partially offset by acquisition net sales of $77 million.
Net sales in the Engineered Materials segment decreased by $27 million from prior year quarter primarily attributed to an organic sales decline of $62 million, partially offset by acquisition net sales of $36 million.
Net sales in the Health, Hygiene & Specialties segment decreased by $23 million from prior year quarter primarily attributed to an organic sales decline of $43 million and a $21 million unfavourable impact from foreign currency changes, partially offset by acquisition net sales of $41 million.
Net sales in the Consumer Packaging segment increased by 6 per cent to $33 million in Q2 2019 from prior year quarter.
“We generated record operating EBITDA for any March quarterly period of $354 million. Our adjusted net income per diluted share was in line with the prior year quarter at $0.84 and we reported a significant improvement in free cash flow,” said Tom Salmon, chairman and chief executive officer of Berry Global.
“Specifically by segment, our Consumer Packaging division delivered strong sales growth of 6 per cent in the quarter, which was largely led by our foodservice products. We continue to be encouraged by the momentum of this division, delivering six consecutive quarters of positive sales growth. Within our Health, Hygiene & Specialties segment we recorded an improvement of 39 per cent in operating income as well as a 6 per cent improvement in operating EBITDA, primarily as a result of the Clopay acquisition. Inside our Engineered Materials division, while our March results were weaker than expected, we completed the qualification of alternate and new raw materials and improved our cost position and service to customers. The fundamentals of this business remain strong and we are now better positioned for growth in these attractive markets. Additionally, we continue to be excited about the Laddawn acquisition which has been inspiring new ways for us to look at our core business as a vehicle to enhance growth, as well as, our customer experience.”
The company has reaffirmed its fiscal year 2019 target of projected cash flow from operations of $1.04 billion and adjusted free cash flow of $670 million. (PC)
Fibre2Fashion News Desk – India