How Graeme Hart's Pactiv Evergreen performed over Q2

Graeme Hart's Pactiv Evergreen lifted its earnings over the second half. Photo / File

Shares in Kiwi billionaire Graeme Hart's Pactiv Evergreen rallied after the US packaging manufacturer and distributor reported an earnings rebound over the second quarter.

The stock, which listed on Nasdaq in September 2020, last traded at US$11.47, up US$1.45 or 14.5 per cent from US$10.02 just before the result's release.

Pactiv Evergreen, which is controlled by Hart's Rank Group, said its net income from continuing operations was US$74 million for the second quarter of 2022 compared to US$8m - which included unusual items - in the prior year period.

"Building on our positive momentum from the past two quarters, I am pleased to share that we had a strong second quarter with significant increases in both net revenues and net income," Michael King, president and chief executive officer, said.

Adjusted ebitda from continuing operations of US$249m for the second quarter of 2022 was up 92 per cent compared to US$130m in the prior year period.

"Although the second half of the year will likely present more challenges than the first, we remain confident in our plans," King said.

Pactiv Evergreen raised its 2022 adjusted ebitda guidance from US$705m to US$750m-US$770m.

The company remained cautious due to the continued inflationary pressures in the market as well as the uncertainty around the global energy market and its impact on raw materials, logistics and other costs.

"Despite this uncertainty, we are confident in our ability to manage these higher costs and execute on our strategy," he said.

Chief financial officer Jon Baksht said Pactiv Evergreen had achieved 21 per cent revenue growth over the prior year.

The company continued to make progress on improving its mill operations and managing its inventory levels.

"While we continue to make positive internal progress, the current external environment remains volatile with uncertainty due to the risks from continued inflationary pressures as well as recession fears," he said.

Pactiv Evergreen's share price has been mixed since the company listed.

The stock's US$14 initial public offer price was well below the expected IPO range of US$18 to US$21 a share.

Pactiv Evergreen traded as low as US$8.86 in March this year to as high as US$18.83 in December 2020.

In calendar 2021, the company's net income from continuing operations came to US$33m, compared to a net loss of US$10m in the previous year.