Pactiv Evergreen Q3 2021 Earnings Report
Key Takeaways
Pactiv Evergreen reported a 17% increase in net revenues to $1,394 million, driven by favorable pricing and volume improvements. Net income from continuing operations was $2 million, a significant improvement from the prior year's net loss of $143 million. Adjusted EBITDA was $119 million, down from $173 million in the prior year, impacted by higher manufacturing, logistics, and material costs.
Net revenues increased by 17% to $1,394 million, driven by a 14% improvement in price/mix and a 3% volume increase.
Net income from continuing operations was $2 million, compared to a net loss of $143 million in the prior year.
Adjusted EBITDA decreased to $119 million from $173 million in the prior year, due to higher manufacturing, logistics, and material costs.
The company completed the acquisition of Fabri-Kal and announced an agreement to sell its interest in Naturepak Beverage, aiming to position the company for future growth.
Pactiv Evergreen
Pactiv Evergreen
Pactiv Evergreen Revenue by Segment
Forward Guidance
The Company is maintaining its full year 2021 guidance provided in its September 2021 earnings update conference call and expects the remainder of 2021 to continue to see sequential and year over year volume recovery and further pricing actions and pass-through contract price increases help us recover margins and profitability.
Positive Outlook
- Continued volume recovery expected.
- Further pricing actions anticipated.
- Pass-through contract price increases expected to aid margin recovery.
- Profitability expected to continue to improve.
- Sequential year over year volume recovery.
Challenges Ahead
- Sustained pressure from high raw materials costs.
- Difficult labor environment.
- Trajectory of the recovery difficult to predict.
- High raw material costs.
- Difficult labor environment makes recovery difficult to predict.
Revenue & Expenses
Visualization of income flow from segment revenue to net income