Q2 2024 Pactiv Evergreen Inc Earnings Call Transcript
Key Points
- Pactiv Evergreen Inc (PTVE) announced a definitive agreement to sell its Pine Bluff paper mill and Waynesville extrusion facility to Suzano, allowing the company to focus on its core North American converting operations.
- The company is taking decisive actions to reduce operating costs by approximately $15 million through targeted headcount reductions and lower spend.
- Pactiv Evergreen Inc (PTVE) successfully repriced and upsized its senior secured term loans, reducing annualized cash interest expense by approximately $14 million.
- Despite challenging market conditions, the company remains committed to its long-term strategy and creating value for stakeholders.
- The company is leveraging its Pactiv Evergreen production system (PEPPs) to increase productivity and drive future cost savings.
- The second quarter results fell short of expectations due to weak consumer demand and temporary operational disruptions at the Pine Bluff paper mill.
- Adjusted EBITDA for the second quarter was $183 million, significantly below the internal forecast and the previous year's adjusted EBITDA of $217 million.
- The company experienced increased pricing pressure from customers who are more price-sensitive due to prolonged inflation.
- Net revenues for the second quarter decreased by about 6% compared to last year, driven by the closure of the Canton, North Carolina mill and lower sales volume.
- The company revised its full-year 2024 guidance downward, with adjusted EBITDA now expected to be between $800 million and $820 million, compared to the previous range of $850 million to $870 million.
Good day, and thank you for standing by. Welcome to the Pactiv Evergreen second-quarter 2024 conference call. (Operator Instructions) Please be advised that today's conference is being recorded.
I would now like to hand the conference over to your first speaker today, Curt Worthington, Vice President of Strategy, Investor Relations. Curt?
Thank you, operator, and good morning, everyone. Welcome to our second quarter 2024 earnings call. With me on the call today, we have Michael King, President and CEO; and Jon Baksht, CFO.
Please visit the Events section of our Investor Relations website at www.pactivevergreen.com and access our supplemental earnings presentation. Management's remarks today should be heard in tandem with reviewing this presentation.
Before we begin our formal remarks, I want to remind everyone that our discussions today will include forward-looking statements,
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