Pactiv Evergreen Q1 2024 Earnings Report
Key Takeaways
Pactiv Evergreen reported a decrease in net revenues and adjusted EBITDA for Q1 2024 compared to Q1 2023, primarily due to the closure of the Canton, North Carolina mill, lower pricing, and reduced sales volume. However, net income improved, and the company is taking actions to manage costs and drive volume improvement.
Net revenues decreased by 13% to $1,252 million compared to Q1 2023.
Net income was $10 million, a significant improvement from the $133 million net loss in Q1 2023.
Adjusted EBITDA decreased to $168 million from $189 million in the prior year.
Adjusted EPS increased slightly to $0.14 compared to $0.13 in Q1 2023.
Pactiv Evergreen
Pactiv Evergreen
Pactiv Evergreen Revenue by Segment
Forward Guidance
Pactiv Evergreen reiterates its full year 2024 Adjusted EBITDA guidance of $850 million to $870 million and its guidance for full year 2024 Free Cash Flow.
Positive Outlook
- Actions to build volume momentum.
- Cost improvement initiatives.
- Confidence in ability to drive progress throughout the year.
- Ability to deliver on financial targets.
- Cautiously optimistic about the macroeconomic backdrop.
Challenges Ahead
- Potential impact on the consumer.
- Challenging business environment.
- Sustained price inflation on consumer spending.
- Weather related disruptions.
- Negative impact on net cash flow from operating activities and Free Cash Flow due to an increase in inventory levels.