Pact Group (ASX:PGH) has revealed its financial results for the first half of FY25, with its managing director and group CEO Sanjay Dayal saying the results are satisfactory.
The company’s revenue from continuing operations for the first half of FY25 was up 3.5 per cent on the prior corresponding period, which it said was predominately due to improved performance in the Materials Handling & Pooling segment as a result of volume growth and increased capacity from investments in mobile garbage bin platforms over the past two years.
Its underlying earnings for continuing operations before interest and tax (underlying EBIT continuing operations) for the first half of FY25 was up 11.8 per cent on the pcp, with five months of trading from the Crates Business excluded from the pcp.
Pact Group said this result reflects the improved revenue performance and the ongoing impact of its transformation plan cost savings, which were initially implemented in the first quarter of FY24.
Reported net profit after tax (NPAT) was 76.3 per cent below the previous corresponding period as the prior period included the Crates business. With the Crates business and underlying adjustment items excluded, underlying NPAT for the continuing operations was reported at $14.8 million, up from a profit of $8.5 million in the previous corresponding period.
The company also announced that on 31 December 2024, it completed the sale of 100 per cent of its wholly owned subsidiary Viscount Rotational Mouldings (VRM) to CRH Infrastructure Products Australia.
The net cash consideration received from the sale of VRM was $21.2 million and the gain on sale before tax was $12.8 million. The VRM business was not a major line of business for the group.
Reflecting on the results, Dayal said, “I am satisfied with the financial results we are reporting today which has been achieved at the same time as we have progressed our vision of leading the circular economy with further upgrades in our packaging platforms and concluding the sale of VRM.
“Looking forward we are experiencing some volatility in resin supply and pricing on the back of the closure of Qenos in Australia, which is adding cost and complexity to the supply chain.”
