First quarter 2023 performance exceeds guidance; Raising 2023 guidance
LAKE FOREST, Ill., May 08, 2023 - Pactiv Evergreen Inc. (“Pactiv Evergreen” or the “Company”) today reported results for the first quarter of 2023. Michael King, President and Chief Executive Officer of Pactiv Evergreen, said, “The Company delivered solid performance in the face of a challenging macroeconomic environment. As expected, the Company’s results were impacted by inflation-driven headwinds on consumer spending, seasonal trends and the costs associated with a scheduled cold mill outage. However, the Company maintained its disciplined pricing strategy and continued to execute against its operational targets to surpass the guidance for the quarter. The outperformance was driven by a combination of favorable mix, lower SG&A and the extension of key business within the Food Merchandising segment that was previously expected to occur in the second quarter. Overall, the Company’s performance in the quarter is a testament to the breadth and resilience of Pactiv Evergreen’s product offering and its dedicated employees.”
Mr. King continued, “The Company has made meaningful progress on the Beverage Merchandising Restructuring plan that was announced in March with the Canton mill expected to cease production by June. The Company also has refined the estimated costs to complete the planned actions. Within its core converting operations, the Company continued to execute on its strategic priorities to improve service levels and boost productivity and efficiency, and we remain confident in our ability to grow the business and de-lever the balance sheet based on Pactiv Evergreen’s position as the market-leading North American food and beverage packaging company.”
Jon Baksht, Chief Financial Officer of Pactiv Evergreen, added, “Despite the near term challenges caused by elevated inflation levels, the Company continues to proactively address its capital structure and interest rate exposure. The Company repaid and repurchased $110 million of our U.S. term loans Tranche B-2 during the first quarter, bringing the cumulative debt reduction to $228 million since December 31, 2021. Not only does this reduce the Company’s leverage profile, it also reduces its floating rate debt to further mitigate against future interest rate increases. As of March 31, 2023, total debt was $4,022 million and Net Debt1 was $3,595 million, both lower than prior year and prior quarter levels.”
First Quarter 2023 Financial Highlights:
- Net Revenues of $1,431 million for the first quarter of 2023 were down 4% compared to $1,495 million in the first quarter of 2022 and down 3% compared to $1,476 million in the fourth quarter of 2022.
- Net Loss of $133 million for the first quarter of 2023 compared to $43 million of net income in the first quarter of 2022 and $27 million of net income in the fourth quarter of 2022.
- Adjusted EBITDA1 of $189 million for the first quarter of 2023 increased 4% compared to $182 million in the first quarter of 2022 and increased 13% compared to $167 million in the fourth quarter of 2022.
- Diluted loss per share of $0.76 for the first quarter of 2023 compared to diluted earnings per share of $0.24 in the first quarter of 2022 and diluted earnings per share of $0.15 in the fourth quarter of 2022.
- Adjusted EPS1 of $0.13 for the first quarter of 2023 compared to $0.16 in the first quarter of 2022 and $0.17 in the fourth quarter of 2022.
Source: Pactiv Evergreen
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