Greif, Inc. (NYSE: GEF, GEF.B) has reported its fiscal third quarter 2024 results, and there are several key financial highlights to note. In comparison to the third quarter of 2023, net income decreased by 3.5% to $87.1 million, or $1.50 per diluted Class A share. Adjusted EBITDA decreased by 14.5% to $193.7 million, and net cash provided by operating activities decreased by $125.5 million to $76.8 million. Adjusted free cash flow also decreased by $132.8 million to $34.3 million.
The company's total debt increased by $738.0 million to $2,909.5 million, and net debt increased by $701.5 million to $2,715.3 million. The leverage ratio increased to 3.66x from 3.44x sequentially, and increased from 2.17x in the prior year quarter.
In terms of strategic actions and announcements, Greif completed the divestment of its US-based subsidiary, Delta Petroleum Company, which allowed for accelerated debt paydown. The company also highlighted the upcoming investor day on December 11, 2024.
In terms of segment results, net sales from completed acquisitions of Reliance Products Ltd. and Ipackchem's primary products are not included in the table below but will be included in their respective segments starting in the fiscal first quarter of 2025 for Reliance and fiscal third quarter of 2025 for Ipackchem.
The company noted that its customer satisfaction index (CSI) is a key internal metric, with a consolidated CSI score of 92.8 at the end of the fiscal third quarter 2024.
Greif's outlook for fiscal 2024 includes adjusted EBITDA in the range of $675 million to $725 million and adjusted free cash flow in the range of $175 million to $225 million.
The company will host a conference call to discuss its third quarter 2024 results on August 29, 2024, at 8:30 a.m. Eastern Time (ET).
Following these announcements, the company's shares moved -2.8%, and are now trading at a price of $60.77. Check out the company's full 8-K submission here.
