The volume decline is primarily attributed to general market softness in industrial markets and the moderation of advantaged products related to the easing of the COVID-19 pandemic. Net sales were also impacted by a $151 million unfavourable impact from foreign currency changes and prior year quarter divestiture sales of $16 million.
The operating income decrease is primarily attributed to a $22 million unfavourable impact from foreign currency and an $11 million unfavourable impact from the volume decline, partially offset by a $28 million favourable impact from price cost spread and product mix.
“For the third fiscal quarter, we reported solid quarterly results including record revenues for any June quarter in our history as underlying demand for our products remained resilient. As we continue to navigate the current environment, we remain focused on cost productivity and working collaboratively with our customers to increase prices to offset rising costs. Adjusted earnings per share came in better than our expectation and was a quarterly record for any period in our history, increasing by 10 per cent versus the prior year on a comparable basis. Furthermore, we continued to increase cash returned to shareholders as we repurchased an additional $286 million of shares, or 4 per cent of our total shares outstanding, in the quarter,” Berry’s chairman and CEO Tom Salmon, said.
“Our consistent and dependable free cash flow, accompanied by our large-scale and diverse portfolio, provides a resilient and steady business through any economic cycle. Additionally, we continue to prudently invest in each of our businesses to maintain and grow our world-class, low-cost manufacturing base, with an emphasis on organic growth and key growth markets and regions. The continued positive momentum from our investments in areas such as health and wellness, personal care, and food safety drive our business toward more sustainable packaging solutions and provide us with a path to deliver long-term, consistent, volume and earnings growth,” explained Salmon.
Fibre2Fashion News Desk (RR)