Pact Group (PGH) H2 2024 earnings summary

Executive summary

• Revenue declined 4.7% to $1,857.2 million year-over-year, but statutory net profit after tax rebounded to $74.9 million from a $6.6 million loss in FY23.

• Underlying EBIT rose 6.4% to $154.6 million, driven by improved supply chain stability, cost reductions, and efficiency gains.

• The divestment of 50% of the Crates Business formed a joint venture (Viscount Reuse), resulting in a $103.2 million gain on sale.

• No final dividend declared for FY24.

Financial highlights

• Underlying EBITDA decreased 4.2% to $265.4 million year-over-year.

• Net debt reduced by $166.7 million to $418.9 million, with gearing at 2.5x (down from 3.0x).

• Operating cash flow was $117.8 million, down 36.8% from the prior year, reflecting higher restructuring and finance costs.

• Earnings per share improved to 21.7 cents from a loss of 1.9 cents.

Outlook and guidance

• Focus remains on strengthening core packaging businesses, expanding recycling and reuse capabilities, and leveraging regional scale.

• Ongoing investment in recycling infrastructure and packaging platforms to increase recycled content.