Sales Essentially Flat for Libbey in 2016 First Quarter
Libbey recently reported results for the first quarter ended March 31, 2016.
Libbey Inc. recently reported results for the first quarter ended March 31, 2016. Net sales for the first quarter of 2016 were $182.8 million, compared to $187.4 million in the first quarter of 2015, a decrease of 2.4% (or an increase of 0.5 % excluding currency fluctuation). Net income for the first quarter of 2016 was $0.7 million, vs. net income of $3.1 million in the prior-year’s first quarter. Adjusted net income for the first quarter of 2016 was $3.6 million, flat compared to the same period of 2015. Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) for the first quarter of 2016 was $22.5 million, compared to $19.7 million in the prior-year’s first quarter. The company reportedly still holds to full-year expectations to generate sales growth of approximately 1%, as reported, and adjusted EBITDA margins of approximately 14%.
“During the first quarter of 2016, our core foodservice channel delivered its 12th consecutive quarter of volume growth, despite continued softness in restaurant traffic,” said William A. Foley, chairman and CEO. “This further demonstrates our market strength and continued commitment to this important part of our business. Improving performance in our other channels continues to be a priority and is critical to the long-term success and potential growth profile of our business. Over the past several months, we have made initial strides across all of our key strategic priority areas, including improving our capability to develop innovative new products, strengthening relationships with our customers across the globe, and simplifying our business to enable it to operate more efficiently and effectively. We are actively pursuing strategic improvements to address these needs and anticipate that this work will progress for the balance of the year.”
Net sales in the U.S. and Canada segment were $113.1 million, compared to $109.9 million in the first quarter of 2015, an increase of 2.9%. Foodservice sales remained strong during the quarter, growing 8.9% vs. last year, partially offset by a reduction in net sales in the business-to-business channel. Retail sales were in-line with the prior-year quarter. Net sales in the Latin America segment were $34.2 million, compared to $39.9 million in the first quarter of 2015, a decrease of 14.1% or a decrease of 2.9 % excluding currency impact, due to weakness in the business-to-business and foodservice channels, more than offsetting a 1.0% (constant currency) increase in net sales in the retail channel. Net sales in the EMEA segment were $26.6 million, compared to $28.5 million in the first quarter of 2015, a decrease of 6.6 % or 4.7% excluding currency impact, due to softness in the business-to-business channel that more than offset a 5.1% (constant currency) growth in net sales in the retail channel. Net sales in Other were $8.9 million in the first quarter of 2016, compared to $9.1 million in the same period last year, reflecting a decrease of 2.5% or an increase of 3.2%, excluding currency impact in net sales in the Asia-Pacific region.
“The first quarter saw a continuation of many trends we have witnessed over the last few quarters,” said Sherry Buck, chief financial officer. “Our U.S. and Canada segment saw fairly stable conditions, while our international businesses continued to be impacted by an extremely competitive environment. We are on track to return 50% of free cash flow to shareholders, from 2015 through 2017, through a combination of our increased dividend and share repurchases. We will continue to take a balanced approach to capital allocation throughout 2016. This includes the maintenance of our strong and flexible financial profile, which includes the goal of maintaining a leverage ratio in the range of 2.5x to 3.0x net debt to adjusted EBITDA over the long term.”
For more information, visit www.libbey.com.