The Pact Group Holdings Ltd (ASX: PGH) share price crashed more than 8% for the second straight day to lead the ASX200 losers today.
The Aussie packaging company fell 8.73% in today's trade, following yesterday's 9.67% crash after reporting its half-year earnings guidance and significant impairment charges yesterday morning.
What was so bad about the announcement?
The company announced the completion of a review of its asset carrying values, with expected non-cash impairment charges in 1H19 of $310 million -$340 million after tax. These writedowns included $90 million -$100 million within its Australian packaging assets and $220 million -$240 million goodwill carrying value in Australia as it revised its growth and discount rate assumptions and forecasts.
The share price collapse can also be put down to the company's unaudited half-year results release, with earnings before interest, tax, depreciation and amortisation (EBITDA) coming in at approximately $110 million.
This represents a 9% decline on 1H18 numbers, with full-year EBITDA estimated to fall in the range of $230-$245 million, but I'd be wary given management's warning surrounding project execution and input cost recovery in the announcement.
So what's going on with Pact's competitors?
Fellow Aussie packager Orora Limited's (ASX: ORA) share price closed 1.86% higher today after announcing its own 1H19 half-year results this morning. The company saw a 9.9% increase in revenue and a 5.9% increase in EBIT to $2.31 billion and $175.1 million, respectively. Net profit after tax was 7.6% higher on the prior corresponding period which flowed through to investors, with management announcing an 8.3% increase in the interim dividend to 6.5 cents per share.
Fellow rival Amcor Ltd's (ASX: AMC) share price also rose today, finishing 1.16% higher at $14.80 per share following its own half-year results release on Monday.
