Pactiv Evergreen financial results impacted by sale

LAKE FOREST - Pactiv Evergreen Inc. reported results for its 2022 fiscal year third quarter, including net revenues of $1.6 billion, down 2% compared to $1.64 billion in the same period last year.

The company is one of the largest manufacturers of food and beverage packaging in North America.

On Aug. 2, the company closed the sale of its carton packaging and filling machinery businesses in China, Korea and Taiwan and received preliminary proceeds of $336 million, which are subject to adjustments for cash, indebtedness and working capital as of the date of completion and excludes taxes. The company recognized a preliminary gain on sale of $239 million in the third quarter, it said.

Net income from continuing operations was $175 million in the third quarter compared to $74 million in the second quarter, and $2 million in the third quarter of 2021. The increase was primarily due to the $239 million gain on the sale of Beverage Merchandising Asia and a $46 million increase in nonoperating income due to a pension settlement gain, the company said.

Pactiv said these increases were partially offset by $76 million of lower gross profit, largely driven by higher material and manufacturing costs and lower sales volume, a $56 million asset impairment charge related to the strategic decision to exit the remaining closures businesses and a $34 million increase in tax expense, primarily attributable to the gain on the sale of Beverage Merchandising Asia.