Pact figures slip in Covid challenge
Volume growth in Pact's packaging and sustainability segment was strong in the full year, in which the Group saw its revenues fall by three per cent, with net profit down by one per cent, although underlying profit rose by 28 per cent, in what the company said was a challenging Covid environment.
Group revenue was $1.76bn, down by $50m on the previous year, with net profit after tax down by $1.3m to $87.5m. Underlying net profit after tax rose by $20.3m to $93.5m. The company saw stronger demand in agricultural and industrial sectors in Australia and New Zealand compared with the previous year.
Pact Group managing director and CEO Sanjay Dayal, said: “Volumes in key segments improved, and we delivered solid growth in underlying earnings and margins. Cashflow increased and gearing reduced. These results demonstrate the great progress we are making in the delivery of strategy and our vision to lead the circular economy.”
Dayal said Pact delivered strong volume growth in closures, in the packaging and sustainability segment, underpinned by the consolidation of its regional platform in Asia, noting that Covid continued to provide a “challenging” environment in the region.
The CEO pointed to Pact’s progress in developing the circular economy, saying: “Volume was also supported by contract wins underpinned by our circular economy credentials and growing demand for sustainable packaging.”
The company’s USA reuse services performed above expectation, and it continued to increase penetration of pooling in the fresh produce sector. It also had a major new contract win in Europe.
The hand sanitiser segment cooled, with Dayal saying demand had “normalised”, with the division – which is up for sale – reporting a 24 per cent fall in revenues, down by $24m for the year, as the Covid focus switched to face masks and vaccinations.