Pact Group Holdings (ASX: $PGH) 2024 Half-Year Report and Accounts

Pact Group Holdings Ltd (ASX: $PGH) has reported a 5% revenue decline, with a statutory net profit after tax of $59.3 million for the half-year ended 31 December 2023. The underlying net profit after tax (NPAT) for the half-year was $21.1 million, down 19.9% compared to the prior corresponding period. The company also divested 50% of its crate pooling and crate manufacturing business, forming a joint venture with global infrastructure investment manager, Morrison & Co.

Executive Commentary on 2024 Half-Year Results

The Group's revenue declined due to reduced demand across the packaging segment in Australia, New Zealand, and China, partially offset by solid sales performance in Materials Handling & Pooling and the Contract Manufacturing segment. Despite the challenging environment, the underlying EBIT improved as cost volatility across the supply chain reduced and commodity prices softened. The company's net debt stood at $428.5 million, largely due to the settlement of the Crate transaction. Pact Group Holdings Ltd has resolved not to pay an interim dividend in respect to 1H FY24.

Outlook and Corporate Strategy

Pact Group Holdings Ltd reiterates guidance that underlying EBIT for FY24 remains in line with consensus. The company continues to focus on managing controllable costs with a transformation program commenced in September 2023. Pact's strategy to Lead the Circular Economy is being advanced through divestment of the Crates Business, building a national network of plastics recycling infrastructure, and construction of new facilities. The Group's ultimate parent entity is Kin Group Pty Ltd, which increased its share ownership in Pact Group Holdings Ltd to 84.46% as at 31 December 2023.