Pact Group CEO, Malcolm Bundey is leaving the company immediately, an obvious casualty of the company’s poor 2017-18 report and market thumbs down.
Pact shares fell 17% at one stage before ending the day (August 15) down more than 14% to $4.56. They fell more than 4% yesterday to close at $3.80.
In 2017-18, the Melbourne-based packaging company posted a full-year statutory net profit after tax of $74 million on sales revenue of $1,674 million. Profit was down 18% in 2016-17, but sales jumped 13%.
While management guidance for 2018-19 appeared to be reasonably solid. (It expects EBITDA before significant items between $270 million and $285 million, compared to 2017-18’s $237 million, investors were not confident.
Mr Bundey, said in the profit release, “Our strategic growth initiatives have performed well, with revenue and earnings in line with expectations. We have been challenged by the macro environment, and this is reflected in our earnings. However, we remain focused on managing the levers within our control, and our business remains strong. We expect to achieve higher revenue and earnings in FY2019, subject to global economic conditions.”
That will not now happen. In yesterday’s statement Pact said he will remain available to the company until March 8 next year to help with the transition. Chairman and major shareholder, Ralph Geminder will act as interim CEO.
