Greif Reports First Quarter 2023 Results

CEO Commentary

"I am very proud of our team's execution in first quarter 2023 despite multiple headwinds: destocking, lower customer demand and continued inflationary pressures," said Ole Rosgaard, Chief Executive Officer of Greif. "The pace and severity of these headwinds progressed rapidly during the quarter and pressured results in both business segments. Despite these challenges, our teams around the world demonstrated resiliency in rapidly adapting to these changing conditions while continuing to deliver on our Build to Last strategy and making meaningful progress towards our long-term strategic missions."

DELAWARE, Ohio , March 1, 2023 -- Greif, Inc. (NYSE: GEF, GEF.B), a global leader in industrial packaging products and services, today announced first quarter 2023 results.

First Quarter Financial Highlights include (all results compared to the first quarter of 2022 unless otherwise noted):

• Net income of $89.9 million or $1.54 per diluted Class A share increased compared to net income of $10.3 million or $0.18 per diluted Class A share. Net income, excluding the impact of adjustments⁽¹⁾, of $61.9 million or $1.06 per diluted Class A share decreased compared to net income, excluding the impact of adjustments, of $75.6 million or $1.28 per diluted Class A share.
    
• Adjusted EBITDA⁽²⁾ of $164.5 million decreased by $32.3 million compared to Adjusted EBITDA of $196.8 million.
    
• Net cash provided by operating activities increased by $10.5 million to $32.9 million. Adjusted free cash flow⁽³⁾ increased by $11.2 million to a use of $7.6 million.
    
• Total debt decreased by $67.5 million to $2,229.3 million. Net debt⁽⁴⁾ decreased by $108.8 million to $2,068.3 million. Our leverage ratio⁽⁵⁾ increased to 2.11x from 1.73x sequentially, which is within our targeted leverage ratio range of 2.0x - 2.5x, but decreased from 2.39x in the prior year quarter.

Strategic Actions and Announcements

• Completed previously announced acquisition of Lee Container Corporation. Our Greif team, including our newly welcomed colleagues, is progressing ahead of schedule on planned integration, and we reaffirm our expectation to fully realize expected synergies of at least $6.0 million.
    
• Announced a definitive agreement to increase Greif's current 9% ownership interest in Centurion Container LLC, a leader in the North American IBC reconditioning industry, to an 80% stake in an all-cash transaction for $145.0 million, subject to customary purchase price adjustments for cash and debt, as well as customary closing conditions, including regulatory clearances. Greif has been a joint venture partner of Centurion since 2020 and is expanding our ownership as part of our ongoing commitment to grow in high margin, highly sustainable resin-based products.

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Source: Greif

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