Graeme Hart's Pactiv Evergreen's loss widens in Q3

Graeme Hart's US unit, Pactiv Evergreen, saw its loss widen in the third quarter. Illustration / NZ Herald.

Kiwi billionaire Graeme Hart's newly-listed US packaging manufacturer and distributor, Pactiv Evergreen, went deeper into loss over the third quarter to September 30, driven by the impact of Covid-19, the company said in a filing.

The net loss came to US$143 million ($209m) for the third quarter, compared to a loss of US$35m in the prior year period.

Pactiv's adjusted EBITDA came to US$173m for the quarter, compared to US$177m in the prior year period.

Chief executive John McGrath said that on an adjusted EBITDA level, the company performed near to the year-ago period, recovering from the lows of the second quarter.

"Whilst challenges around Covid-19 remain, we go into the last quarter of the year with financial flexibility and a stronger balance sheet, and we continue to drive improvement across our business through our strategic investment programme."

Net revenue came to US$1.195 billion for the third quarter compared to US$1.306b in the prior year period.

The revenue decline was primarily driven by lower volume largely due to the unfavorable impact from the Covid-19 pandemic, as well as lower pricing, mainly due to lower raw material costs passed through to customers, it said.

For the nine months to September, revenue was US$3.514b compared to US$3.888b in the prior year period.

The performance of Pactiv Evergreen's share price has been mixed since the company listed on Nasdaq in September.

The stock first fell to US$10.93 from its US$14 initial public offer price, which was well below the expected IPO range of US$18 to US$21 a share.

But Pactiv Evergreen has since rebounded, last trading at US$13.94.