In the December 2019 quarter, Berry Global’s net sales were up 43% to just over $2.8 billion. The increase included revenue from the acquisition of RPC of $1.08 billion and continued positive organic volumes in its North American Consumer Packaging business. These positives were partially offset by lower selling prices of $183 million due to the pass through of lower resin costs and the divested sales of the Seal for Life (SFL) business of $28 million.

Health, Hygiene & Specialties delivered net sales of $541 million. The net sales decline in the segment is primarily attributed to lower selling prices of $67 million due to the pass through of lower resin costs, prior quarter sales of $28 million related to the divested SFL business and the customer product transition in hygiene. Excluding the customer product transition, organic sales volume was flat for the quarter.

Berry’s Chairman and CEO Tom Salmon comments, “During the quarter we achieved record net sales and operating EBITDA for any December quarterly period in the company’s history. Overall, our results and organic growth progression were consistent with our expectations. I am pleased by the continued performance of our North American Consumer Packaging division, delivering its seventh consecutive quarter of positive organic volume growth, recording 3% volume growth in this December quarter. Additionally, both our Health, Hygiene & Specialties and Engineered Materials divisions reported sequential volume improvement as expected. Our Consumer Packaging International segment has gotten off to a solid start, with cost synergy realization on plan and commercial activities to drive long-term growth, well under way. The integration of RPC continues to move forward and our synergy targets remain on track.”

In July 2019, Berry completed the acquisition of RPC, for aggregate consideration of $6.1 billion. RPC is a leading plastic product design and engineering company for packaging and select non-packaging markets, with 189 sites in 34 countries. RPC develops and manufactures a diverse range of products for a wide variety of customers, including many household names, and enjoys strong market positions in many of the end markets it serves and the geographical areas in which it operates. It uses a wide range of polymer conversion techniques and is also one of the largest plastic recyclers in Europe. The international based facilities are operated within the Consumer Packaging – International segment with the remaining U.S. based facilities operated within the Consumer Packaging – North America segment.

In July 2019, the company completed the sale of its SFL business which was operated in our Health, Hygiene & Specialties segment for net proceeds of $325 million. The SFL business had sales of approximately $120 million for the four quarters ended June, 29, 2019. The company used the proceeds of the sale to repay debt and expedite the primary goal of improving its balance sheet.