Pactiv Evergreen reports earnings, updates
LAKE FOREST - Pactiv Evergreen Inc. reported financial results for its 2022 fiscal year, including net revenues of $6.2 billion for the year ended Dec. 31, up 14% compared to $5.4 billion in the prior year.
Net income from continuing operations were $319 million for the fiscal year compared to $33 million in 2021. Pactiv Evergreen is one of the largest manufacturers of fresh food and beverage packaging in North America, with a team of nearly 15,000 employees.
The company said it completed the year by executing on its strategy to focus on its core business, while completing the integration of Fabri-Kal, a manufacturer of food service and consumer brand packaging solutions. Pactiv Evergreen reported an expected sequential decline in its operating results amid ongoing inflationary pressure on the consumer, combined with seasonal trends and the sale of its Beverage Merchandising Asia business in the third quarter.
The company also announced it is taking actions to restructure its Beverage Merchandising segment and to reorganize the company's management structure.
"The strategic actions we are announcing today will reduce our capital expenditures and overhead costs. We expect these proactive steps to position us to remain competitive in the liquid packaging market and gain additional synergies from the further integration of our businesses," said Michael King, president and chief executive officer.
The company said it plans to reorganize its management structure by combining the Beverage Merchandising and Food Merchandising businesses effective April 1. It also expects to close its Canton, North Carolina, mill and its converting facility in Olmsted Falls, Ohio, with operations at both facilities expected to end during the second quarter of 2023. Production from the Olmsted Falls facility will be reallocated to other sites.
The company also continues to explore strategic alternatives for its Pine Bluff, Arkansas, mill and Waynesville, North Carolina, facility. Pactiv Evergreen has not set a timetable in relation to this process.