Pactiv Evergreen Records 22% Growth In Q2 Revenue; Warns Of Inflationary Pressures

Pactiv Evergreen Inc PTVE reported second-quarter FY21 net revenue growth of 22.1% year-on-year, to $1.35 billion, beating the analyst consensus of $1.25 billion.
Net revenues from the Foodservice segment rose 40.9% Y/Y, Food merchandising and Beverage merchandising increased 11%.
Gross profit fell 13.8% Y/Y to $150 million.
The operating margin was 2.2%, and operating income for the quarter rose 275% to $30 million.
The company held $350 million in cash and equivalents as of June 30, 2021. Total outstanding debt was $3.9 billion.
Adjusted EBITDA of $130 million gained 2.4%.
It reported EPS of $0.04 versus a loss of $(0.30) in Q2 FY20.
"As indicated in our last earnings call, the second quarter saw continued volume recovery across all of our segments but inflation on raw materials, transportation, and labor and the residual effects from Winter Storm Uri led to higher costs of goods sold in Q2 2021," said CEO Michael King.
Pactiv has warned of pressure from high raw materials costs along with a challenging labor environment.
Price action: PTVE shares closed lower by 2.93% at $13.92 on Wednesday.

Earnings Calendar