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3rd August 2020, Evansville, IN

Berry Global reports strong third quarter

© Berry Global.© Berry Global.

Berry Global Group, Inc. today reported its third quarter 2020 results, referred to in the following as the June 2020 quarter.

Third Quarter Highlights (all comparisons made to the June 2019 quarter)

  • Net sales up 50 percent to $2.9 billion
  • Operating income up 61 percent to $347 million
  • Operating EBITDA up 67 percent to $581 million
  • Net income per diluted share up significantly to $1.42
  • Adjusted net income per diluted share increase of 69 percent to $1.52
  • RPC Group Plc (“RPC”) integration and synergy realization progressing ahead of plan
  • Increased fiscal year 2020 cash flow from operations and free cash flow guidance to $1.45 billion and $830 million, respectively

Berry’s Chairman and CEO, Tom Salmon, commented: “Through our employees’ relentless effort and dedication, along with our diverse, stable portfolio, we were able to deliver record earnings for any quarter in the Company’s history. We have made progress and remain focused on our top three financial objectives of improving our strong balance sheet, organically growing our businesses, and integrating the RPC acquisition as demonstrated in this recently completed quarter.”

“I am happy to report we generated a June quarterly record for net sales of over $2.9 billion, up 50 percent compared to the prior year quarter. Operating income increased 61 percent to $347 million while Operating EBITDA was a record for any quarter in the Company’s history at $581 million. Our adjusted earnings per share increased 69 percent to $1.52, and we reported a significant improvement in quarterly free cash flow, bringing our four quarters ended free cash flow to over $1 billion.”

“For the June 2020 quarter, overall organic volumes for our legacy Berry businesses were up 2 percent. Our Health, Hygiene & Specialties segment recorded strong volume growth of 14 percent related to our recent investments, our targeted market approach, along with COVID-19 related benefits in our healthcare portfolio. Excluding COVID-19 benefits, we believe the business delivered high-single digit growth in the quarter. We are very proud of our teams in achieving their objectives of delivering profitable and sustainable growth. Our Consumer Packaging-North American business recorded flat volume for the quarter with strength in healthcare, household cleaning and grocery offset by softness in food service and industrial markets. We remain encouraged by the momentum of the Division with a continued growing revenue pipeline. Our Engineered Materials business saw volume declines of 8 percent in the quarter driven by headwinds related to COVID-19. Many of the products in that business are sold through distribution to schools, offices, or restaurants, to name a few end markets, which saw more contracted demand than our more consumer facing businesses. Excluding COVID-19, we believe the business would have grown low-single digits.”

“Our financial profile remains solid as we have a strong liquidity position with over $900 million of cash at the end of the quarter as well as an undrawn $850 million asset-based line of credit representing nearly $1.8 billion of liquidity. Also, we have no financial maintenance covenants or near-term debt maturities.”


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