Pact Group achieved earnings growth in the financial year to June, with underlying EBIT up by 6.4 per cent to $154.6m, from $145.3m in the previous corresponding period.
Underlying net profit after tax remained steady, up by 0.2 per cent to $44.9m, on sales of $1.86bn. During the year Pact sold half its Crate Pooling and Crate Manufacturing business, and set up a JV with Morrison & Co for the remaining half.
This meant that overall revenue dropped by 4.7 per cent, as Crates was only included for five months, rather than 12 the previous year. Underlying EBITDA for the group was down by 4.2 per cent to $265.4m.
Total reported net profit after tax shot out of the red and into the black, last years $6.6m loss turning in to a positive $74.9m. The company says this came from both the impact of its cost savings programme, and the profit on the sale of the Crates business, which was $103.2m before tax.
The company says the uptick in its EBIT to 6.4 per cent came despite a “challenging” economic environment, and reflects the impact of its Transformation Plan cost savings programme.
Sanjay Dayal, managing director at CEO of Pact, said, “Market conditions were challenging across the year, as we felt the impact of cost of living pressures in Australia and in New Zealand, and subdued demand from China.
“Despite these trends I am pleased that we have grown earnings on the back of a more stable supply chain, proactive cost reduction measures, and significant improvements in efficiency.”
The full year figures came against the backdrop of a nine-month battle by company chairman Raphael Geminder to achieve full ownership of the group, ending in June, which ultimately fell just short.
