Group 1 - Greif, Inc. is highlighted as an interesting company in the market, particularly in the context of its operations and potential [1] - The company is involved in the oil and natural gas sector, focusing on cash flow generation which is crucial for value and growth prospects [1] Group 2 - The investment service provided by Crude Value Insights includes a stock model account with over 50 stocks, emphasizing in-depth cash flow analyses of exploration and production firms [2] - Subscribers have access to live chat discussions regarding the oil and gas sector, enhancing community engagement and information sharing [2]

Core Points - Greif will permanently cease production at the Number 1 Paperboard Machine (A1) in Austell, GA, and close the containerboard and uncoated recycled paperboard (URB) mill in Fitchburg, MA due to increased costs and declining demand in key markets [1][2] - Approximately 140 positions will be impacted by these closures, with the A1 asset expected to cease production by the end of March 2025 and the Fitchburg mill by May 2025 [2][3] - The closures will reduce Greif's containerboard capacity by 100,000 tons and URB capacity by 90,000 tons, aiming to refine market participation and maximize profitability [2][3] Company Overview - Greif is a global leader in industrial packaging products and services, producing a variety of packaging solutions including steel, plastic, and fiber drums, as well as containerboard and specialty products [4] - The company operates over 250 facilities in 37 countries, employing more than 14,000 colleagues to serve both global and regional customers [4]

Financial Performance - The Company reported total net sales of $5,448.1 million for the fiscal year ended October 31, 2024, compared to $5,405.7 million in the previous year, reflecting a slight increase[37]. - Total operating profit for 2024 was $464.6 million, a decrease of 23.3% from $605.5 million in 2023[39]. - Total capital expenditures for 2024 were $174.2 million, down 20.2% from $218.2 million in 2023[39]. - Depreciation, depletion, and amortization expense increased to $261.3 million in 2024 from $230.6 million in 2023, reflecting a rise of 13.3%[39]. Segment Performance - The Global Industrial Packaging segment generated net sales of $3,124.3 million, while Paper Packaging & Services contributed $2,303.5 million, and Land Management accounted for $20.3 million[37]. - Global Industrial Packaging segment reported an operating profit of $341.1 million, up from $334.3 million in 2023, while Paper Packaging & Services segment saw a decline to $115.6 million from $264.1 million[39]. Shareholder Information - The average Class A shares outstanding increased to 25,751,386 in 2024 from 25,592,928 in 2023, while diluted shares decreased slightly to 25,977,401[28]. - The Company’s basic Class A EPS was calculated using a two-class method, reflecting a 40% to 60% split between Class A and Class B shareholders[24]. - Basic Class A shares outstanding increased to 25,751,386 in 2024 from 25,592,928 in 2023[28]. Cash Flow and Liabilities - Operating cash flows used for operating liabilities amounted to $71.9 million in 2024, up from $64.3 million in 2023[32]. - The Company’s lease liabilities included $69.6 million in new operating lease liabilities and $6.4 million in new finance lease liabilities for the year ended October 31, 2024[32]. - Leased assets obtained in exchange for new operating lease liabilities were $69.6 million in 2024, down from $95.0 million in 2023[32]. Other Comprehensive Loss and Accruals - The Company’s accumulated other comprehensive loss at year-end was $114.3 million, an increase from $109.2 million at the beginning of the year[20]. - As of October 31, 2024, the Company accrued $9.8 million for the Diamond Alkali Superfund Site, indicating potential future charges that could impact earnings[23]. - The Company accrued $9.8 million for the Diamond Alkali Superfund Site as of October 31, 2024[23]. Timber Management - The Company operates on approximately 175,000 acres of timber properties, focusing on sustainable long-term yields through active harvesting and regeneration[35]. - The company aims to maintain a consistent cutting schedule for timber sales, despite market and weather fluctuations[35]. - The value of timberland is assessed based on various factors, including proximity to population centers and anticipated growth, requiring ongoing review and re-characterization[36]. Employee Benefits - The Company’s contributions to 401(k) plans were $29.0 million in 2024, slightly down from $29.1 million in 2023[21].

Financial Performance - Net income for Q4 2024 decreased by 6.5% to $63.4 million, or $1.08 per diluted Class A share, compared to $67.8 million, or $1.16 per diluted Class A share in Q4 2023[3]. - For the fiscal year 2024, net income decreased by 27.0% to $262.1 million, or $4.52 per diluted Class A share, down from $359.2 million, or $6.15 per diluted Class A share in fiscal year 2023[4]. - Adjusted EBITDA for Q4 2024 decreased by 2.0% to $197.6 million compared to $201.6 million in Q4 2023[3]. - Operating profit for the twelve months ended October 31, 2024, was $464.6 million, a decrease of 23.3% from $605.5 million in the previous year[34]. - Net income for the three months ended October 31, 2024, was $68.8 million, a decrease of 6.1% from $73.3 million in the same period last year[40]. - The company reported a net income before income tax expense of $86.8 million for the three months ended October 31, 2024, compared to $82.7 million in the same period last year, showing a growth of 1.2%[34]. - The company experienced a year-over-year increase in net income from $67.8 million in the same period of 2023, reflecting a growth of approximately 8.5%[58]. - Excluding adjustments, the net income for the twelve months ended October 31, 2024, was $262.1 million, with diluted earnings per share of $4.52, representing a 10.6% increase compared to the previous year[58]. Sales and Revenue - Net sales in the Global Industrial Packaging segment increased by $65.9 million to $786.9 million, driven by higher volumes and contributions from recent acquisitions[14]. - Net sales for the three months ended October 31, 2024, were $1,417.1 million, an increase of 8.3% compared to $1,308.4 million for the same period in 2023[34]. - Total net sales increased to $1,417.1 million for the three months ended October 31, 2024, up 8.3% from $1,308.4 million in the prior year[44]. - Total net sales for the Global Industrial Packaging segment reached $1,124.0 million for the twelve months ended October 31, 2024, compared to $1,093.0 million for the same period in 2023, reflecting a growth of 2.6%[65]. - The company's total revenue for the twelve months ended October 31, 2024, was $295.0 million, reflecting a decrease from $494.7 million in the previous year, highlighting a need for strategic market adjustments[58]. Debt and Leverage - Total debt increased by $525.5 million to $2,740.6 million, with a leverage ratio rising to 3.53x from 2.2x in the prior year quarter[4]. - Long-term debt rose to $2,626.2 million as of October 31, 2024, compared to $2,121.4 million in the previous year, indicating increased leverage[36]. - The company's total debt as of October 31, 2024, was $2,740.6 million, an increase of 23.6% from $2,215.1 million a year earlier[62]. - Net debt increased to $2,542.9 million as of October 31, 2024, compared to $2,034.2 million in the same period last year, representing a rise of 25%[62]. - The leverage ratio as of October 31, 2024, was 3.53x, up from 2.2x a year ago, indicating increased financial leverage[62]. Cash Flow and Investments - Cash flows from operating activities for the three months ended October 31, 2024, were $187.2 million, down from $203.5 million in the same period last year[40]. - Net cash used in investing activities was $45.5 million for the three months ended October 31, 2024, compared to a net cash outflow of $173.5 million in the same period last year[40]. - Payments on long-term debt for the three months ended October 31, 2024, totaled $171.8 million, compared to a payment of $47.6 million in the same period last year[40]. - Free Cash Flow for the three months ended October 31, 2024, was $142.1 million, an increase from $126.3 million in the prior year[55]. - The company anticipates adjusted free cash flow of $225.0 million for fiscal year 2025, suggesting a focus on maintaining strong cash management[68]. Cost Management and Efficiency - The company announced a targeted cost optimization effort to eliminate $100 million of structural costs through SG&A rationalization and operational efficiency gains[6]. - Greif, Inc. plans to continue focusing on cost management and operational efficiency to enhance profitability in the upcoming quarters[58]. - Total capital expenditures for the fiscal year 2024 were $169.0 million, down from $218.2 million in fiscal year 2023, a decrease of 22.5%[65]. Customer Satisfaction - The company recorded a net promoter score (NPS) of 69, indicating strong customer satisfaction and service performance[9]. Taxation - The income tax rate for Q4 2024 was recorded at 21.8%, with a full-year rate of 10.6%[18]. - The tax rate for the twelve months ended October 31, 2024, was 21.9%, compared to 23.8% in the previous year, indicating a favorable tax environment for the company[58].

Greif, Inc. (GEF) reported adjusted earnings per share (EPS) of $1.13 for fourth-quarter fiscal 2024 (ended Oct. 31, 2024), which surpassed the Zacks Consensus Estimate of $1.08. GEF’s bottom line declined 29% year over year as higher input and labor costs as well as selling, general and administrative expenses offset the gain from improved sales.Including one-time items, Greif’s EPS was $1.08 compared with $1.16 in the prior-year quarter.Find the latest EPS estimates and surprises on Zacks Earnings Calenda ...

Financial Data and Key Metrics Changes - The corrected Q4 net income excluding adjustments was $65.5 million, with diluted Class A earnings per share at $1.13, compared to the originally reported figures of $49.6 million and $0.85 per share [8][27]. - Fourth quarter adjusted EBITDA was $198 million, down from $202 million year-over-year [26]. - Adjusted free cash flow for Q4 was $145 million, an increase from $136 million in the previous year [27]. Business Line Data and Key Metrics Changes - In the GIP segment, adjusted EBITDA increased by $4 million, but EBITDA margins decreased by 70 basis points [31]. - The PPS segment experienced an adjusted EBITDA decline of $8 million and a margin decline of 240 basis points year-over-year, although sequentially, EBITDA margin improved by 220 basis points [32]. - Containerboard and corrugated volumes showed solid performance with operating rates over 90%, while URB and tube and core volumes lagged due to soft demand [33]. Market Data and Key Metrics Changes - EMEA remained the strongest region, although volumes were slightly down sequentially [22]. - North America saw a significant volume decline of almost 18% on a two-year basis, with GIP demand remaining choppy [23]. - LATAM showed improvement, while APAC continued to be soft, resulting in a neutral year-over-year demand impact [25]. Company Strategy and Development Direction - The company is focusing on optimizing its operating model to leverage core competitive advantages and aims to double its size in the future [11][12]. - The strategic business units will be organized around four material solutions: customized polymer solutions, durable metal solutions, sustainable fiber solutions, and integrated solutions [12]. - The company plans to invest further in polymer-based products and caps and closures, which are expected to grow over time [17]. Management's Comments on Operating Environment and Future Outlook - The management acknowledged the ongoing industrial contraction, which has lasted for 25 months, and emphasized the importance of this soft macroeconomic environment in formulating fiscal 2025 guidance [21][22]. - Despite the challenging environment, the company is outperforming market expectations in EMEA due to ongoing business model optimization [22]. - Management expressed confidence in the recovery of volumes in North America, attributing current softness to the extended demand contraction cycle [24]. Other Important Information - The company has allocated over $1 billion in capital for margin growth and acquisitions, and it is targeting at least $100 million in cost reductions by the end of fiscal 2027 [19][20]. - The company will provide further details on its new segments and financial highlights at the upcoming Investor Day [15][47]. Q&A Session Summary Question: Future investment areas beyond customized Polymer Solutions - Management indicated that while Polymer Solutions is a primary focus, investments will also be made in fiber-based and metals-based businesses, particularly in automation and caps and closures [52][54]. Question: Commentary on leverage perspective - Management expressed comfort with the current leverage ratio, noting that recovery in demand would quickly improve the ratio [56]. Question: Details on the $100 million cost reduction program - Management clarified that the program is not fixing anything broken but aims to enhance efficiency through SG&A rationalization, network optimization, and operating efficiencies [64][66]. Question: Volume assumptions for fiscal 2025 guidance - Management provided insights into expected volume uplifts in the containerboard and polymer solutions segments, while anticipating contraction in metal solutions [72][73]. Question: High-end scenario for fiscal 2025 guidance - Management refrained from providing a high-end guidance scenario due to uncertainty in the industrial recession's duration but noted potential drivers for upside [78][81]. Question: Demand trends for the new IBC plant in Malaysia - Management did not comment on individual plants but emphasized the overall growth in the premium end of the polymer market [87]. Question: Variance in Ipackchem relative to deal model - Management acknowledged a shortfall in Ipackchem's contribution compared to initial expectations but expressed confidence in long-term profitability [98][100]. Question: Impact of tariffs on volume outlook - Management indicated that tariffs would not significantly impact the business, as raw materials are sourced and produced locally [108]. Question: First quarter performance outlook - Management noted that the first quarter typically experiences a slower ramp-up, with some drag expected in the metals business due to decreasing steel prices [113].

(® PACKAGING SUCCESS TOGETHER® tic Drums Fiscal Fourth Quarter 2024 Earnings Conference Call December 5, 2024 Safe Harbor FORWARD-LOOKING STATEMENTS This presentation contains certain forward-looking information within the meaning of the Private Securities Litigation Reform Act of 1995. The words "may," "will," "expect," "intend," "estimate," "anticipate," "aspiration," "objective," "project," "believe," "continue," "on track" or "target" or the negative thereof and similar expressions, among others, identi ...

DELAWARE, Ohio, Dec. 04, 2024 (GLOBE NEWSWIRE) -- Greif, Inc. (NYSE: GEF, GEF.B), has issued a revised earnings release to correct an error in the previously issued press release titled “Greif Reports Fourth Quarter and Fiscal 2024 Results” (the “Prior Earnings Release”) issued on December 4, 2024 at 04:01 PM ET. In the Prior Earnings Release, the fourth quarter 2024 net income, excluding the impact of adjustments, incorrectly presented a $16.0 million income tax expense related to “(gain) loss on disposal ...

DELAWARE, Ohio, Dec. 04, 2024 (GLOBE NEWSWIRE) -- Correction: Fourth quarter 2024 net income, excluding the impact of adjustments, revised to $65.5 million and 2024 Class A diluted earnings per share, excluding adjustments, revised to $1.13. In the earnings release issued earlier today, the fourth quarter 2024 net income, excluding the impact of adjustments, incorrectly presented a $16.0 million income tax expense related to “(gain) loss on disposal of businesses, net”. This resulted in stating net income, ...

Greif (GEF) reported $1.42 billion in revenue for the quarter ended October 2024, representing a year-over-year increase of 8.3%. EPS of $0.85 for the same period compares to $1.56 a year ago.The reported revenue compares to the Zacks Consensus Estimate of $1.41 billion, representing a surprise of +0.34%. The company delivered an EPS surprise of -21.30%, with the consensus EPS estimate being $1.08.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street ex ...