Pactiv Evergreen Inc. - PTVE STOCK NEWS

Pactiv Evergreen (NASDAQ: PTVE) has revised its fiscal year 2021 Adjusted EBITDA guidance to $550 million due to several external challenges affecting profitability. While the company observes a recovery in volume across all segments, rising raw material and transportation costs, labor shortages, and operational disruptions from recent weather events, notably Tropical Storm Fred, are expected to hinder profit recovery into 2022. The company is focused on improving production and service levels while addressing cost recovery through pricing initiatives.

Pactiv Evergreen Inc. (NASDAQ: PTVE) announced a definitive agreement to acquire Fabri-Kal for approximately $380 million, enhancing its foodservice segment and strengthening sustainable packaging offerings. The acquisition, expected to finalize by late Q3 or early Q4 2021, aims to expand manufacturing capacity and customer base. Fabri-Kal, known for its high-quality, sustainable products, contributes significantly to the foodservice market. The deal is subject to regulatory approvals and standard closing conditions, with Pactiv’s CEO expressing optimism about driving increased value for stakeholders.

Pactiv Evergreen has appointed Douglas Owenby as Chief Operations Officer, effective September 13. Owenby, with over 30 years of experience, previously served as COO at Graham Packaging. He will oversee global operating functions, taking over responsibilities from CFO Mike Ragen, who managed operations since 2018. The company aims to centralize operations into a Center of Excellence to enhance efficiency, resource utilization, and quality production. Pactiv Evergreen is a leading manufacturer of food and beverage packaging in North America, employing nearly 15,000 people.

Pactiv Evergreen reported a strong Q2 2021 with net revenues of $1,352 million, up 22% year-over-year, driven by volume recovery in the Foodservice and Beverage Merchandising segments, achieving 33% and 13% growth, respectively. However, the company faced inflationary pressures on raw materials and labor, leading to higher costs. Although the net income improved to $8 million from a loss of $18 million, higher material and logistics costs impacted Adjusted EBITDA, which was $130 million. Looking ahead, Pactiv Evergreen anticipates continued volume recovery but remains cautious due to ongoing cost pressures.

Pactiv Evergreen has announced its decision to exit the coated groundwood paper business, ceasing production at its Pine Bluff, AR location by October 31, 2021. This strategic shift aims to redirect resources towards more profitable segments, particularly liquid packaging board. Despite this transition, the Pine Bluff mill will remain a key facility, continuing to employ over 650 employees and supporting the beverage packaging market. The company is committed to assisting affected customers and employees during this change.

Pactiv Evergreen (NASDAQ: PTVE) will release its second quarter 2021 earnings on August 4, 2021, after market close. A teleconference will be held on August 5, 2021, at 8:30 a.m. ET. Investors can access the live webcast on the company's Investor Relations website. Key participants from Pactiv Evergreen include CEO Michael King, CFO/COO Michael Ragen, and SVP of Investor Relations Dhaval Patel. The company is a major North American producer of fresh food and beverage packaging, with a focus on sustainable materials.

Pactiv Evergreen reported a challenging first quarter of 2021, with net revenues of $1,164 million, down from $1,212 million year-over-year. The company experienced a net loss of $11 million compared to a $133 million profit in the same period last year, primarily due to increased costs from Winter Storm Uri and ongoing COVID-19 impacts. Adjusted EBITDA decreased to $77 million from $145 million. Despite these challenges, Pactiv anticipates a near double-digit volume recovery in 2021, particularly in Foodservice and Food Merchandising segments.

Pactiv Evergreen Inc. (NASDAQ: PTVE) announced a quarterly dividend of $0.10 per share, set to be paid on June 15, 2021, to shareholders holding shares at the close of business on May 28, 2021. As one of North America's largest food and beverage packaging manufacturers, Pactiv Evergreen utilizes recycled and renewable materials in many of its products, serving a diverse customer base including restaurants and food processors.

Pactiv Evergreen announced the launch of the GiveBack program, aimed at rewarding community engagement among employees and their families. This initiative supports sustainability efforts by granting funds for projects involving registered nonprofits. The program is open to employees in the U.S., Canada, and Mexico, allowing their student family members to apply. Applications must be submitted by July 14, 2021, with winners announced in the fall. The program reflects Pactiv Evergreen's dedication to sustainability and community involvement.