Pact Group (ASX:PGH) has released its financials for the year ending 30 June 2024, reporting a revenue loss of 4.7 per cent to $1.857 billion from the $1.948 billion it reported in the previous corresponding period.

Its statutory reported profit after tax was $74.9 million.

The company’s underlying EBITDA was down 4.2 per cent to $265.4 million, while its underlying NPAT was up 0.2 per cent to $44.9 million.

Pact attributed its company revenue loss to the inclusion of five months of the Crates business revenue, which it divested 50 per cent of in December 2023 while retaining the remaining 50 per cent to form a joint venture in partnership with global infrastructure investment manager, Morrison & Co.

Pact added that its improved EBIT was achieved despite a challenging economic environment and reflects the impact of the transformation plan cost savings that it implemented in the first quarter of FY24.

Reflecting on the results, Pact managing director and CEO Sanjay Dayal said, “Market conditions were challenging across the year as we felt the impact of cost of living pressures in Australia and New Zealand, and subdued demand out of China.

“Despite these trends, I am pleased to report that we have grown earnings on the back of a more stable supply chain, proactive cost reduction measures and significant improvements in efficiency.”

Pact’s Packaging and Sustainability segment saw a loss of 2.7 per cent from the previous corresponding period. The company said volume was impacted by the slow demand, particularly in the industrial segments in Australia and New Zealand, discretionary spend segments such as personal care and variable demand in Asia, and “soft volumes” in China and India.

However, while volumes were down, it said margins recovered as international and domestic supply chains stabilised, price recoveries were achieved and operating performance improved due to site closures, upgrades and relocations.

There was also a continued focus on cost control as the transformation program was implemented, offsetting some of the increases in property-related expenses experienced through the year.

Within its Materials Handling and Pooling business, revenue for the segment was up six per cent. The company said in the Reuse business, there has been growth in demand for mobile garbage bins following capital investment in FY23, and revenues in Retail Accessories stabilised.

As for its Contract Manufacturing segment, revenue was down 0.5 per cent from the previous corresponding period. The company said this was due to economic conditions domestically and abroad leading to lower demand for nutraceutical products and changing consumer behaviour leading to demand shifting from branded products to private label substitutes in the homecare segment.