Greif, Inc. (NYSE: GEF, GEF.B) has reported its first quarter 2024 results. Here are the key financial highlights:
- Net income was $67.2 million or $1.17 per diluted class A share, a decrease compared to net income of $89.9 million or $1.54 per diluted class A share in the first quarter of 2023.
- Adjusted net income, excluding the impact of adjustments, was $72.8 million or $1.27 per diluted class A share, an increase compared to adjusted net income of $61.9 million or $1.06 per diluted class A share in the first quarter of 2023.
- Adjusted EBITDA was $128.0 million, a decrease of $36.5 million compared to adjusted EBITDA of $164.5 million in the first quarter of 2023.
- Net cash provided by operating activities decreased by $28.4 million to $4.5 million, and adjusted free cash flow decreased by $40.6 million to a use of $48.2 million.
- Total debt increased to $2,291.8 million, and net debt increased to $2,112.5 million. The leverage ratio increased to 2.53x from 2.20x sequentially and increased from 2.11x in the prior year quarter.
In terms of specific business segments: Global Industrial Packaging: Net sales decreased by $19.2 million to $686.6 million, with gross profit increasing by $10.0 million to $135.3 million and operating profit increasing by $5.0 million to $50.9 million. Paper Packaging & Services: Net sales decreased by $45.6 million to $514.6 million, with gross profit decreasing by $39.8 million to $84.4 million and operating profit decreasing by $92.3 million to $16.8 million.
The company's customer satisfaction index (CSI) was 93.3 at the end of the first quarter of 2024, with the goal of achieving a CSI score greater than 95.0 in the long term.
Greif's CEO, Ole Rosgaard, commented on the results, stating, "Greif once again has produced solid financial results in a challenging operating environment." He emphasized the company's focus on controlling what it can and investing for the future.
Looking ahead, the company is providing a low-end guidance estimate for fiscal 2024, with adjusted EBITDA expected to be $610 million and adjusted free cash flow to be $200 million. However, the company noted that it is unable to determine the trajectory of product demand for the remainder of the fiscal year due to the uncertainty in the forward-looking macro-economic environment.
Greif, Inc. is a global leader in industrial packaging products and services, and is pursuing its vision to be the best performing customer service company in the world.
Today the company's shares have moved -1.2% to a price of $63.7. Check out the company's full 8-K submission here.
