Speculation is mounting that Pact Group will sell its Contract Manufacturing Services business after the company indicated this month that asset sales could be on the agenda.
The division generated $25 million in earnings before interest, tax, depreciation and amortisation for the 2019 financial year, down from $40m in the previous year.
Pact created the division through three acquisitions and is expected to offload the company after last week embarking on a strategic review and identifying operations that are non-core.
During the year, Pact said the division was expecting pain from customers destocking and higher raw material input costs.
New management had been appointed to the company, backed by Raphael Geminder, and there was an increased focus on reducing costs.
The company last week cut its dividend and delivered a downbeat earnings outlook, sending its shares plummeting.
It posted an annual $290m loss, while EBITDA was relatively flat at $231m.
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