Pact Group (ASX: PGH) reaches new lows following AGM
Stock
Pact Group (ASX: PGH) $3.21 as at 14/11/2018
Event
The packaging company has plummeted in this morning’s trade while their AGM takes place, currently trading down -11% on the day.
The market has reacted negatively to the company’s outlook which flagged a soft start to FY19 and guidance that was well below expectations for the full year.
Pact Group, which supplies packaging in Australia, NZ the US and across Asia to the likes of a2 Milk (ASX: A2M) & Blackmores (ASX: BKL) among others, has struggled over the past few years as they grapple with rising input costs heavily impacting margins across the business.
Resin prices continue to climb, which has had a material impact on the first half of FY19, which is now “expected to be weaker than pcp (previously comparable period).”
The company has been unable to pass on costs to customers as quickly as anticipated, and Pact Group now expects EBITDA for FY19 to be in the range of $245m, almost 10% below Bloomberg consensus estimate.
Pact Group (ASX: PGH) Chart
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