Reynolds Group Holdings, Graeme Hart's global packaging business, has seen its annual loss widen to US$417 million (NZ$510m) from US$97 million after continuing its run of predominantly debt-fuelled acquisitions.
Reynolds, whose largely US and European based businesses include SIG, Reynolds Consumer Packaging, Evergreen, Closures, Pactiv Foodservice and Graham Packaging, had total liabilities of US$22.065 billion as of December 31, 2011. That exceeded its US$21.888 billion worth of assets, leaving an equity deficit of US$177 million. Of the liabilities, US$17.1 billion worth is borrowings.
Hart last year bought the Pennsylvania-based Graham Packaging for US$4.5 billion and Canada's Dopaco for US$400 million.
The company's 334 page annual report shows the Luxembourg incorporated Reynolds, which Hart oversees from an office on Auckland's Quay Street, with annual revenue almost doubling to US$11.8 billion. It also shows annual financial expenses of US$1.4 billion. Of the US$21.888 billion in assets, US$12.5 billion stems from intangibles of which about half is goodwill.
The US$417 million 2011 loss from continuing activities compares with a loss of US$97 million in 2010. As of December 31, the company had cash on hand of US$445 million and US$152 million worth of short-term deposits.
