Berry Plastics Group, Inc. has revealed its results for its fiscal third quarter 2013. For the quarter ending June 2013, Berry Plastics net sales declined by 2 percent to $1,221 million from $1,242 million, primarily attributed to a volume decline of 2 percent, principally related to softer customer demand, year-over-year adverse change in weather and a reduction in raw material content.
The company achieved a record for any third fiscal quarter with a June 2013 quarter Operating EBITDA of $208 million and LTM Adjusted EBITDA of $811 million. Berry also revealed that this was the 12th consecutive quarter of increased year-over-year Operating EBITDA. The company reduced net debt by $623 million and reduced its leverage ratio to 4.8x, a reduction of 1.0x from the June 2012 quarter, the release notes. Recorded Adjusted net income per share of $0.35 for the June 2013 quarter rose compared to $0.22 in the June 2012 quarter. Berry also increased Operating EBITDA by almost 5 percent versus the June 2012 quarter and increased Operating EBITDA margin to 17.0 percent from 16.0 percent in the June 2012 quarter.
"During the June 2013 quarter the Company achieved an Operating EBITDA record for any June quarter, despite the sustained pressure from continued soft consumer demand. The year-over-year Operating EBITDA margin improvements of 1 percent were achieved primarily through productivity, strategic cost reduction actions taken, and sourcing savings." said Jon Rich, Chairman and CEO of Berry Plastics.
For June 2013 YTD, Berry’s net sales declined by 3 percent to $3,443 million from $3,562 million as compared to the same period for 2012. This decline was primarily attributed to lower selling prices resulting from lower plastic resin costs in the December 2012 quarter, according to a press release as well as soft customer demand, the year-over-year adverse change in weather and reduction in raw material content.