Pactiv Evergreen Inc. reported a decline in financial performance for the third quarter and the first nine months of 2024 compared to the same periods in 2023. For the three months ended September 30, 2024, net revenues were $1,333 million, down 3% from $1,379 million in the prior year. The company experienced a similar trend for the nine-month period, with revenues decreasing to $3,923 million from $4,236 million, also a 7% decline.

The gross profit for the third quarter was $255 million, representing 19% of revenue, a decrease from $281 million (20% of revenue) in the same quarter of 2023. The operating loss from continuing operations for the third quarter was $(196) million, a significant drop from an operating income of $113 million in the prior year. The net loss attributable to common shareholders for the third quarter was $(213) million, compared to a net income of $30 million in the same period last year. For the nine months ended September 30, 2024, the net loss improved to $(185) million from $(246) million in 2023.

The company attributed the losses primarily to a $322 million impairment charge related to the Mill Transaction, which significantly impacted the loss from continuing operations before tax, reported at $(251) million for the third quarter, compared to a profit of $50 million in 2023. Adjusted EBITDA from continuing operations for the third quarter was $214 million, down from $227 million in the same period last year.

Pactiv Evergreen is undergoing a restructuring plan called Footprint Optimization, announced on February 29, 2024, with expected capital expenditures of $40 million to $45 million. The company also reported restructuring charges of $342 million for the third quarter, with a significant portion attributed to the Food and Beverage Merchandising segment.

In terms of liquidity, Pactiv Evergreen had $168 million in cash and cash equivalents as of September 30, 2024, an increase from $164 million at the end of 2023. The company’s total assets decreased to $6,051 million from $6,395 million as of December 31, 2023. Total equity attributable to common shareholders also declined to $1,085 million from $1,345 million during the same period.

The company continues to face challenges from market conditions, including high inflation affecting consumer spending and increased price sensitivity among customers. The economic outlook remains uncertain due to rising interest rates and geopolitical factors, which may further impact product demand.