Packaging company Pactiv Evergreen has reported a net income of $30m in the third quarter (Q3) of 2023, a decline of 82.9% from $176m in Q3 2022.

For the quarter ending on 30 September 2023, net income attributable to the company’s common shareholders was $29m, as against $176m a year ago.

Net income from continuing operations was $28m while the same was $175m in Q3 last year.

Basic and diluted earnings per share attributable to Pactiv’s common shareholders from continuing operations stood at $0.15 versus $0.98 in the previous year’s Q3.

The US-based company’s net revenues for Q3 2023 totalled $1.37bn, representing a 14% decline from $1.60bn in the prior year’s same period.

This decline in revenue, according to Pactiv, was mainly driven by the closure of its North Carolina-based mill in Q2 2023.

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By GlobalData

Other reasons for this decrease include lower sales volumes and unfavourable pricing due to the contractual pass-through of lower material costs.

Gross profit in the third quarter of 2023 was listed at $281m, compared to $232m in the same quarter last year.

Operating income from continuing operations for the reported quarter was $113m, as against $269m in Q3 2022.        

Adjusted earnings before interest, taxes, depreciation, and amortisation, classed as non-generally accepted accounting principles (GAAP), was up by 21.3% to $227m from $187m in Q3 2022.

Pactiv president and CEO Michael King said: “We have made significant progress on the Beverage Merchandising Restructuring during the year, including the closure of our Canton [North Carolina] mill and our Olmsted Falls, Ohio converting facility and the reorganisation of our management structure.

“These are important steps to enhance our position as a market-leading North American food and beverage packaging company.

“While the macroeconomic environment remains uncertain, the actions we have taken to improve our cost structure, coupled with the resilience of our business model, allowed us to generate solid free cash flow and drive increased value for our shareholders.”

Pactiv has also announced partnering with ExxonMobil to offer certified circular packaging solutions for the foodservice industry.