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Dec 31, 2021
Pactiv Evergreen Q4 2021 Earnings Report
Pactiv Evergreen's fourth quarter results were reported, demonstrating revenue growth and strategic progress.
Key Takeaways
Pactiv Evergreen reported a 30% increase in net revenues for Q4 2021, driven by favorable pricing and the acquisition of Fabri-Kal. Net income from continuing operations increased to $34 million. The company is focused on strategic priorities, including the Fabri-Kal integration and streamlining operations in North America.
Net revenues increased by 30% to $1,527 million compared to the prior-year period.
Net income from continuing operations was $34 million, up from $18 million in the prior-year period.
Adjusted EBITDA from continuing operations increased to $205 million from $170 million in the prior-year period.
The company completed the acquisition of Fabri-Kal and is progressing with its integration.
Pactiv Evergreen
Pactiv Evergreen
Pactiv Evergreen Revenue by Segment
Revenue by Segment
Foodservice Revenue
CapyFin.com Forward Guidance
The Company is providing guidance for Adjusted EBITDA from continuing operations of $705 million for 2022.
Positive Outlook
- Continued pricing initiatives across all three businesses
- Continued inflationary pressures and labor challenges in the first half of 2022 moderating into the second half of 2022
- Moderate volume growth due to tougher comparisons
- Normalization of inventory levels to improve service and reliability
- Full year contribution from the Fabri-Kal acquisition
Challenges Ahead
- Significant inflationary pressures
- Volatility in raw material costs
- Continued labor challenges
- Omicron variant impacted production capabilities and volume in December 2021 and into the early part of the first quarter of 2022
- Scheduled mill outages in the second half of 2022