Pact Group (PGH) H1 2025 earnings summary

Executive summary

• Revenue from continuing operations rose 3.5% to $929.5 million, but total group revenue fell 2.3% year-over-year due to divestments.

• Statutory net profit after tax dropped 76.3% to $14.1 million, impacted by prior year one-off gains and restructuring costs.

• Underlying EBITDA from continuing operations increased 4.6% to $124.0 million; underlying EBIT up 11.8% to $69.4 million.

• No interim dividend declared for the half-year ended 31 December 2024.

• Net debt increased to $470.8 million, reflecting higher working capital and ongoing capital investment.

Financial highlights

• Underlying NPAT from continuing operations rose 74.1% to $14.8 million year-over-year.

• Group EBITDA margin declined to 13.3% from 14.4% year-over-year.

• Net cash flows from operating activities fell 35.8% to $17.3 million, mainly due to supply chain disruptions.

• Capital expenditure was $57.9 million, down $6.0 million from the prior period.

• Gearing (net debt/EBITDA) increased to 2.8x from 2.7x year-over-year.

Outlook and guidance

• Early 2025 trading is below last year, with soft demand signals for the remainder of FY25.

• Cost of living pressures and tariff tensions are expected to continue impacting demand.

• Resin supply chain remains volatile and costly after the Qenos closure; all resins now imported.