Berry Plastics Group, Inc. (BERY) has reported 1,175 percent jump in profit for the quarter ended Dec. 31, 2016. The company has earned $51 million, or $0.40 a share in the quarter, compared with $4 million, or $0.03 a share for the same period last year. On an adjusted basis, earnings per share were at $0.50 for the quarter compared with $0.35 in the same period last year.
Revenue during the quarter dropped 6.82 percent to $1,502 million from $1,612 million in the previous year period. Gross margin for the quarter expanded 159 basis points over the previous year period to 19.71 percent. Total expenses were 90.28 percent of quarterly revenues, down from 94.67 percent for the same period last year. This has led to an improvement of 439 basis points in operating margin to 9.72 percent.
Operating income for the quarter was $146 million, compared with $86 million in the previous year period.
However, the adjusted operating income for the quarter stood at $165 million compared to $145 million in the prior year period. At the same time, adjusted operating margin improved 199 basis points in the quarter to 10.99 percent from 9 percent in the last year period.
"I am pleased to report we achieved record operating EBITDA for any December quarter in the Company's history. Our results this quarter were driven by growth in our Health, Hygiene, and Specialties division and strong operating performance in our Engineered Materials division," said Tom Salmon, chief executive officer of Berry Plastics.
Operating cash flow drops significantly
Berry Plastics Group, Inc. has generated cash of $143 million from operating activities during the quarter, down 25.13 percent or $ 48 million, when compared with the last year period.
The company has spent $64 million cash to meet investing activities during the quarter as against cash outgo of $2,375 million in the last year period. It has incurred net capital expenditure of $63 million on net basis during the quarter, down 29.21 percent or $26 million from year ago period.
The company has spent $65 million cash to carry out financing activities during the quarter as against cash inflow of $2,240 million in the last year period.
Cash and cash equivalents stood at $331 million as on Dec. 31, 2016, up 17.38 percent or $49 million from $282 million on Jan. 02, 2016.
Debt comes down
Berry Plastics Group, Inc. has recorded a decline in total debt over the last one year. It stood at $5,753 million as on Dec. 31, 2016, down 6.42 percent or $395 million from $6,148 million on Jan. 02, 2016. Total debt was 76.59 percent of total assets as on Dec. 31, 2016, compared with 79.74 percent on Jan. 02, 2016. Interest coverage ratio improved to 2.15 for the quarter from 1.15 for the same period last year.
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