Pact Group reports H1 loss

Pact Group Holdings (PGH) expects second-half earnings will be boosted by the consolidation of four acquisitions and by its continued efficiency programs, after posting a net loss in the first half of the year on the back of IPO transaction costs.

The plastic and metal packaging maker reported a net loss of $1.99 million in the six months to December 2013, compared with a net profit of $45.63 million in the six months to December 2012.

The result included significant items of $26.2 million before tax relating to transaction costs associated with its initial public offering in December 2013, lower than the $30.1 million its prospectus forecast.

But revenue increased by 2.1% to $582.7 million in the half-year, compared with $570.8 million in the previous corresponding period.

Meanwhile, strong demand in core markets, particularly the food and dairy sector, drove a slight 0.2 per cent rise in sales revenue for the half to $567.6 million.

Pact also noted volumes for agricultural products weakened as drought hit local sales.

The group declined to pay an interim dividend but confirmed its intention to pay its first dividend in October following its full-year results.

The packaging company's chairman Raphael Geminder said the interim results show the group is tracking to prospectus forecasts.

"As we move into the second half, we are focused on integrating recent acquisitions, delivering further operational efficiencies and positioning Pact for future growth through innovation and geographic expansion." Mr Geminder said.

The group reiterated earnings guidance of $197 statutory EBITDA before significant items and dividend guidance of 9.5 cents per share, as outlined in its prospectus.