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Mar 31, 2023
Pactiv Evergreen Q1 2023 Earnings Report
Pactiv Evergreen's first quarter performance exceeded expectations, with increased Adjusted EBITDA, despite a decrease in net revenues and a net loss due to restructuring charges.
Key Takeaways
Pactiv Evergreen reported a decrease in net revenues to $1,431 million, a net loss of $133 million, and an increase in Adjusted EBITDA to $189 million. The company's performance was impacted by inflation, seasonal trends, and a scheduled cold mill outage, but was offset by disciplined pricing and operational targets. The company has increased its full year 2023 Adjusted EBITDA guidance to a range of $775 million to $800 million.
Net revenues decreased by 4% to $1,431 million compared to Q1 2022.
Net loss was $133 million, compared to a net income of $43 million in Q1 2022, impacted by Beverage Merchandising Restructuring charges.
Adjusted EBITDA increased by 4% to $189 million compared to Q1 2022.
Adjusted EPS was $0.13, compared to $0.16 in Q1 2022.
Revenue by Segment
Forward Guidance
Pactiv Evergreen has increased its full year 2023 Adjusted EBITDA guidance to a range of $775 million to $800 million.
Positive Outlook
- Company expects results to benefit from a seasonal uplift into the second half.
- Company delivered solid performance in the face of a challenging macroeconomic environment.
- Company maintained its disciplined pricing strategy.
- Company continued to execute against its operational targets to surpass the guidance for the quarter.
- The outperformance was driven by a combination of favorable mix, lower SG&A and the extension of key business within the Food Merchandising segment.
Challenges Ahead
- Market conditions expected to remain challenging through the remainder of this year.
- Company's results were impacted by inflation-driven headwinds on consumer spending.
- Company's results were impacted by seasonal trends.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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