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Sep 30, 2024

Pactiv Evergreen Q3 2024 Earnings Report

Pactiv Evergreen reported a net loss due to impairment charges from the Mill Transaction, while managing to increase adjusted EPS through cost discipline and resource optimization.

Key Takeaways

Pactiv Evergreen reported a decrease in net revenues and a significant net loss due to a $322 million impairment charge from the Mill Transaction. However, the company increased adjusted EPS through cost management and resource optimization.

Net revenues decreased by 3% year-over-year to $1,333 million.

Net loss from continuing operations was $213 million, or $1.18 per diluted share, compared to net income of $28 million, or $0.15 per diluted share, in the third quarter of 2023.

Adjusted EBITDA was $214 million, compared to $227 million in the third quarter of 2023.

Adjusted EPS increased to $0.36 from $0.32 in the third quarter of 2023.

Total Revenue
$1.33B
Previous year: $1.38B
-3.3%
EPS
$0.36
Previous year: $0.32
+12.5%
Gross Profit
$255M
Previous year: $281M
-9.3%
Cash and Equivalents
$168M
Previous year: $233M
-27.9%
Free Cash Flow
$190M
Previous year: $176M
+8.0%
Total Assets
$6.05B
Previous year: $6.45B
-6.1%

Pactiv Evergreen

Pactiv Evergreen

Pactiv Evergreen Revenue by Segment

Forward Guidance

Pactiv Evergreen is updating its existing guidance range for full year 2024 Adjusted EBITDA to a range of $800 million to $810 million.

Positive Outlook

  • Established a solid foundation for the next leg of transformational journey.
  • Dedicated to carefully overseeing operations.
  • Committed to preserving a strong balance sheet.
  • Focused on driving growth through innovation.
  • Identifying opportunities to extend reach beyond conventional channels.

Challenges Ahead

  • Operations divested in the Mill Transaction impacted performance.
  • Company has not reconciled the non-GAAP measure Adjusted EBITDA to the GAAP measure net income (loss) on a forward-looking basis.
  • Unable to quantify certain reconciling items without unreasonable efforts.
  • Forward-looking statements are subject to risks, uncertainties and assumptions.
  • New risks emerge from time to time, and it is not possible for our management to predict all risks.