Pact Group (PGH) H2 2024 earnings summary

Executive summary

• Revenue declined 4.7% to $1,857.2 million for FY24, with statutory net profit after tax of $74.9 million, reversing a prior year loss of $6.6 million.

• Underlying NPAT was stable at $44.9 million, while underlying EBIT rose 6.4% to $154.6 million, driven by improved performance in continuing operations.

• The divestment of 50% of the Crates Business generated a $103.2 million gain, forming a joint venture with Morrison & Co.

• No final dividend was declared for FY24.

Financial highlights

• Revenue from continuing operations fell 1.4% to $1,803.7 million; discontinued operations revenue dropped 55.3% to $53.5 million.

• Underlying EBITDA decreased 4.2% to $265.4 million; underlying EBIT from continuing operations increased 14.0% to $136.5 million.

• Net debt reduced by $166.7 million to $418.9 million, mainly due to proceeds from the Crates transaction.

• Basic EPS was 21.7 cents, up from a loss of 1.9 cents per share in FY23.

Outlook and guidance

• The company continues to focus on strengthening its core, expanding reuse and recycling capabilities, and leveraging regional scale.

• Ongoing investment in recycling infrastructure and packaging upgrades to support increased recycled content.