Pact Group

This company is the largest maker of rigid plastics packaging in Australia and New Zealand, although it operates in around 15 countries overall. The company has a strong competitive advantage in plastic recycling and a lot of capital expenditure is being made in order to grow shareholder value from recycling solutions. This in turn will allow it to benefit from increasing ESG mandates in its customer base. Consequently, while earnings growth is expected to be fairly slow over the next few years, Pact’s market leading position in Australia means it enjoys solid Returns on Invested Capital and good free cash flow generation, which we think the market will recognise over time.


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