Shareholders must have cheered to see the Pact Group Holdings Ltd (ASX: PGH) share price rise 3.7% to $3.58 today after a period of declines since early August.
The manufacturer of packaging products shares slumped after the release of its FY18 results which revealed a statutory NPAT drop of 18% from FY17.
The Pact Group share price has dropped 37% over the last 12 months, but part of its profit dip can be attributed to expenses totalling around $23 million – due primarily to a higher earn-out for its Pascoe’s acquisition, transaction costs for its Asian acquisition and restructuring costs.
Pact Group has forecast EBITDA growth to between $270 million and $280 million for FY19 and if raw materials costs are more manageable, should be able to improve on its margins.
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Motley Fool contributor Carin Pickworth has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.