Greif, Inc. (NYSE: GEF, GEF.B) has reported its fiscal second quarter 2024 results, highlighting significant changes compared to the same period in 2023. Here are the key financial highlights:
- Net income decreased by 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 in the second quarter of 2023.
- Adjusted EBITDA decreased by 25.7% to $169.9 million compared to $228.6 million in the second quarter of 2023.
- Net cash provided by operating activities decreased by $123.3 million to $87.5 million, and adjusted free cash flow decreased by $126.5 million to a source of $59.0 million.
- Total debt increased by $626.9 million to $2,916.1 million, primarily to fund the acquisition of ipackchem. Net debt increased by $589.4 million to $2,720.1 million, and the leverage ratio increased to 3.44x from 2.53x sequentially.
In terms of segment results:
- Net sales from completed acquisitions of Centurion Container, Reliance, and ipackchem’s primary products are not included in the table below, but will be included in their respective segments starting in upcoming periods.
- In the Global Industrial Packaging segment, net sales increased by $56.6 million to $804.8 million, with gross profit increasing by $3.6 million to $181.5 million. However, operating profit decreased by $27.9 million to $83.4 million.
- In the Paper Packaging & Services segment, net sales increased by $6.0 million to $560.8 million, while gross profit decreased by $45.4 million to $86.0 million, leading to a decrease in operating profit and adjusted EBITDA.
The company's CEO, Ole Rosgaard, expressed excitement about the progress made on the build to last strategy, including the completion of the ipackchem acquisition and achieving milestones. However, he noted that results were impacted by significant negative price or cost in the paper business from delayed recognition of announced price increases.
Looking ahead, Greif has provided an outlook for fiscal 2024, with adjusted EBITDA expected to range between $675 million and $725 million, and adjusted free cash flow expected to range between $175 million and $225 million.
This is a snapshot of Greif's performance in the fiscal second quarter of 2024, highlighting the changes in key financial metrics compared to the same period in 2023.
Please note that the company will host a conference call to discuss these results on June 6, 2024, at 8:30 a.m. Eastern Time. As a result of these announcements, the company's shares have moved -0.1% on the market, and are now trading at a price of $61.29. If you want to know more, read the company's complete 8-K report here.
