Pact Group has released its HY results, noting that its $200m in investment last year has resulted in improved results and capability.
Sales revenue for the group is $808m, up 11 per cent from the pcp result of $727m. Pact says this was driven by transformational growth initiatives undertaken in the prior year, and improved underlying sales.
The company explains, “Solid underlying growth was delivered in Australia, with strong demand in the contract manufacturing, materials handling, and sustainability sectors, partly offset by lower volumes in international markets.
“Rigid packaging volumes were generally stable with improved volumes in the health and wellness sector offset by lower demand in the dairy, food and beverage sector due in part to a major customer plant closure.”
EBITDA is $121m, in line with Pact’s guidance, matching the pcp result. EBIT is $87m, a four per cent decrease from the pcp result of $90m, which Pact attributes to higher depreciation and amortisation.
Net profit after tax (NPAT) is $51m, 4 per cent lower than the previous result of $53m, while statutory NPAT is down 12 per cent, at $44m from the pcp result of $50m.
Malcolm Bundey, CEO, managing director, Pact Group says, “We have transformed our product and service portfolio into sectors offering attractive growth opportunities. This included investment of over $200m in transformational growth initiatives last year which saw us grow our contract manufacturing and materials handling platforms, in addition to increasing our packaging capability to support growth in the attractive health and wellness sector. We continue to realise the benefits of these investments.
“Our new Australian crate pooling business, providing fresh produce supply for Woolworths, commenced operations. Commissioning activities were completed on schedule with earnings in the period above expectation. This has been an important milestone in establishing leading positions in pooling services for returnable produce crates in both Australia and New Zealand.
“Improved demand in the health and wellness sector also positively impacted volumes in our rigid packaging businesses. We are pleased to see the benefit of our increased exposure to this sector following recent investments.”
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