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Jun 30, 2022

Pactiv Evergreen Q2 2022 Earnings Report

Pactiv Evergreen reported strong second quarter with significant increases in net revenues and net income.

Key Takeaways

Pactiv Evergreen reported a strong second quarter with a 21% increase in net revenues to $1,640 million and net income from continuing operations of $74 million, up from $8 million in the prior year period. Adjusted EBITDA from continuing operations increased by 92% to $249 million. The company is raising its 2022 Adjusted EBITDA guidance from $705 million to a range of $750 million to $770 million.

Net Revenues increased by 21% to $1,640 million compared to $1,352 million in the prior year period.

Net Income from continuing operations was $74 million compared to $8 million in the prior year period.

Adjusted EBITDA from continuing operations increased by 92% to $249 million compared to $130 million in the prior year period.

The company completed the exit of its Asia business and received preliminary proceeds of $336 million in August.

Total Revenue
$1.64B
Previous year: $1.35B
+21.3%
EPS
$0.4
Previous year: $0.04
+900.0%
Gross Profit
$308M
Previous year: $150M
+105.3%
Cash and Equivalents
$246M
Previous year: $350M
-29.7%
Total Assets
$7.29B
Previous year: $6.78B
+7.4%

Pactiv Evergreen

Pactiv Evergreen

Pactiv Evergreen Revenue by Segment

Forward Guidance

The company is updating and raising its 2022 Adjusted EBITDA guidance from $705 million to a range of $750 million to $770 million to reflect our strong year-to-date performance.

Positive Outlook

  • Progress in mill operations
  • Improvement in labor levels
  • Confidence in managing higher costs
  • Ability to execute on strategy
  • Strong year-to-date performance

Challenges Ahead

  • Continued inflationary pressures in the market
  • Uncertainty around the global energy market
  • Impact on raw materials
  • Impact on logistics
  • Recession fears

Revenue & Expenses

Visualization of income flow from segment revenue to net income