Plastic packaging manufacturer Pact Group has announced a strategic review to determine what operations and activities are "core" to its business, a move which could trigger asset sales.
"We just need to look at it and understand what have we really got, is there something special about us which is going to give us a competitive advantage, is there something special which the customers believe that Pact can give them that nobody else can," he said.Mr Dayal, who took the helm in April, said the review was not a signal that Pact planned to move manufacturing offshore.
They've just stretched the balance sheet too far. And that's come at a period where earnings in the core business have been soft.Pact's underlying profit and earnings before interest, tax, depreciation and amortisation of $231.6 million were in line with analyst expectations. Simon Conn, portfolio manager with Investors Mutual which holds about 10.5 per cent of Pact's shares, said Pact had met its guidance for EBITDA and generated good cash flow.