DELAWARE ,Ohio ,Dec. 06, 2023 -Greif, Inc. (NYSE: GEF, GEF.B), a world leader in industrial packaging products and services, today announced fourth quarter and fiscal 2023 results.
Fourth Quarter Results Include (all results compared to the fourth quarter 2022 unless otherwise noted):
- Net income of
$67.8 million or$1.16 per diluted Class A share compared to net income of$99.5 million or$1.67 per diluted Class A share. Net income, excluding the impact of adjustments(1), of$90.9 million or$1.56 per diluted Class A share compared to net income, excluding the impact of adjustments, of$109.0 million or$1.83 per diluted Class A share. - Adjusted EBITDA(2) of
$199.2 million , a decrease of$19 .5 million, compared to Adjusted EBITDA of$218.7 million . - Net cash provided by operating activities decreased by
$83 .1 million to$203.5 million . Adjusted free cash flow(3) decreased by$98 .3 million to$136.2 million .
Fiscal Year Results Include (all results compared to the fiscal year 2022 unless otherwise noted):
- Net income of
$359.2 million or$6.15 per diluted Class A share compared to net income of$376.7 million or$6.30 per diluted Class A share. Net income, excluding the impact of adjustments, of$358.7 million or$6.14 per diluted Class A share compared to net income, excluding the impact of adjustments, of$471.2 million or$7.87 per diluted Class A share. - Adjusted EBITDA of
$818.8 million , a decrease of$98 .7 million, compared to Adjusted EBITDA of$917.5 million . - Net cash provided by operating activities decreased by
$8 .0 million to$649.5 million . Adjusted free cash flow decreased by$25 .1 million to$481.2 million . - Total debt increased by
$299 .0 million to$2,215.1 million related to acquisitions closed during the year. Net debt(4) increased by$265 .2 million to$2,034.2 million . The Company's leverage ratio(5) increased to 2.2x from 1.73x and also from 2.17x sequentially, which is within our targeted leverage ratio range of 2.0x - 2.5x. - The Company increased its quarterly dividend by 4% during the year, paying a record
$116.5 million in cash dividends to stockholders in fiscal 2023.
Strategic Actions and Announcements
- Completed acquisition of 100% ownership interest in
Reliance Products, Ltd. , a leading producer of high-performance barrier and conventional blow molded jerrycans and small plastic containers inCanada , as ofOctober 1, 2023 . - Signed definitive agreement to acquire 100% ownership interest in
Ipackchem Group SAS , a global leader in premium barrier and non-barrier jerrycans and small plastic containers, from an affiliate ofSK Capital Partners , in a cash transaction valued at$538 (8) million. The transaction will be funded through available capacity in the Company’s existing credit facilities and is expected to close by the end of the second quarter of the Company’s 2024 fiscal year, subject to various closing conditions, including governmental and regulatory clearances.
CEO Commentary
“I am deeply proud of our team and the results they delivered in fiscal 2023, in the face of market headwinds, which persisted over the balance of the year. Facing this historic volume adversity, our team worked collaboratively to take necessary and decisive action to deliver exceptional value for our customers and our shareholders. As a result of that work, I am pleased to share that 2023 was the second-best year in Greif’s 146-year history for recorded Adjusted EBITDA and Adjusted Free Cash Flow – a truly remarkable achievement. In addition, during the year we deployed over
Source: Greif
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