Pactiv Evergreen Inc (PTVE) Reports Q3 2023 Earnings: Net Revenues Down 14% YoY
Net Revenues for Q3 2023 were $1,379 million, down 14% YoY and 3% QoQ.
Net Income from continuing operations stood at $28 million for Q3 2023, compared to $175 million in Q3 2022.
Adjusted EBITDA of $227 million for Q3 2023, up from $187 million in Q3 2022.
Adjusted EPS of $0.32 for Q3 2023, up from $0.13 in Q3 2022.
On November 1, 2023, Pactiv Evergreen Inc (NASDAQ:PTVE) released its Q3 2023 earnings report. The company reported net revenues of $1,379 million, a decrease of 14% compared to $1,609 million in Q3 2022 and a 3% decrease from $1,426 million in Q2 2023. Despite the decrease in revenues, the company demonstrated resilience with solid operating performance and cost discipline.
Financial Performance
Net income from continuing operations stood at $28 million for Q3 2023, a significant decrease from $175 million in Q3 2022. However, the company reported an adjusted EBITDA of $227 million for Q3 2023, a rise from $187 million in Q3 2022. The diluted earnings per share from continuing operations were $0.15 for Q3 2023, a decrease from $0.98 in Q3 2022. However, the adjusted EPS stood at $0.32 for Q3 2023, a significant increase from $0.13 in Q3 2022.
Company's Commentary
Michael King, President and CEO of Pactiv Evergreen, said, "I am proud of our teams performance during the third quarter. The Company continued to execute at a high level, while managing costs and making further progress on its transformational journey."
Jon Baksht, CFO of Pactiv Evergreen, added, "We continue to prioritize the strengthening of our balance sheet. Our ability to generate strong cash flows from operating activities and free cash flow underpins our commitment to reduce our outstanding borrowings and invest in future growth opportunities."
Segment Results
The Foodservice segment reported a decrease in net revenues, primarily due to unfavorable pricing, largely due to lower material costs. The Food and Beverage Merchandising segment also reported a decrease in net revenues, driven by the closure of the Canton, North Carolina mill and lower sales volume.
Balance Sheet and Cash Flow Highlights
The company continues to deliver on its commitment to strengthen its balance sheet. Since December 31, 2022, the company reduced its total outstanding debt, mostly due to $515 million of early repayments, and Net Debt also declined. Net cash flow provided by operating activities and Free Cash Flow were positive during the third quarter of 2023, inclusive of cash payments related to the Beverage Merchandising Restructuring.
Outlook
The company increased its full year 2023 Adjusted EBITDA guidance to a range of $825 million to $835 million, underscoring Pactiv Evergreens ability to drive profitable growth despite uncertainty across the broader market and industry. In addition, the company increased its guidance for full year 2023 Free Cash Flow.
Explore the complete 8-K earnings release (here) from Pactiv Evergreen Inc for further details.
This article first appeared on GuruFocus.
