Greif Reports Fiscal Second Quarter 2024 Results

Ole Rosgaard, President and Chief Executive Officer of Greif

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DELAWARE, Ohio, June 05, 2024 - Greif, Inc. (NYSE: GEF, GEF.B), a global leader in industrial packaging products and services, today announced fiscal second quarter 2024 results.

Fiscal Second Quarter 2024 Financial Highlights:
(all results compared to the second quarter of 2023 unless otherwise noted)

  • Net income decreased 60.1% to $44.4 million or $0.77 per diluted Class A share compared to net income of $111.2 million or $1.90 per diluted Class A share. Net income, excluding the impact of adjustments(1), decreased 53.9% to $47.9 million or $0.82 per diluted Class A share compared to net income, excluding the impact of adjustments, of $103.8 million or $1.77 per diluted Class A share.
  • Adjusted EBITDA(2) decreased 25.7% to $169.9 million compared to Adjusted EBITDA of $228.6 million.
  • Net cash provided by operating activities decreased by $123.3 million to $87.5 million. Adjusted free cash flow(3) decreased by $126.5 million to a source of $59.0 million.
  • Total debt of $2,916.1 million increased by $626.9 million, primarily to fund the acquisition of Ipackchem. Net debt(4) increased by $589.4 million to $2,720.1 million. Our leverage ratio(5) increased to 3.44x from 2.53x sequentially, and increased from 2.25x in the prior year quarter.

Strategic Actions and Announcements

  • On March 26, 2024, Greif announced completion of its acquisition of Ipackchem. This acquisition is another key milestone in our strategic objective to grow a global leading platform in high-performance small plastic containers.
  • Greif will host its Investor Day in New York City on December 11th, 2024. Further information, including a save the date and formal invitations will be provided closer to the date.

CEO Commentary

“We are excited to present another quarter of solid progress on our Build to Last Strategy, including completing our Ipackchem acquisition and achieving multiple other milestones on our Build to Last missions,” stated Ole Rosgaard, Chief Executive Officer of Greif. “These missions, enabled by operating excellence, are structurally improving our operating efficiency, creating significant operating leverage as we saw continued signs of demand improvement in many of our key regions and end markets during the quarter. On the demand side, our second quarter results exceeded our expectations, however results were impacted by significant negative price or cost in our paper business from the continued delayed recognition of announced price increases. For the time being, we continue to monitor and manage the improving demand alongside our customers, while strictly managing costs to ensure value creation.”

Link to full report

Source: Greif