Greif(GEF) - 2025 Q1 - Quarterly Report

Financial Performance - Net sales for the three months ended January 31, 2025, increased to $1,265.8 million, up 4.1% from$ 1,205.8 million in the same period of 2024[9] - Gross profit rose to $245.5 million, representing a 10.8% increase compared to$ 221.6 million in the prior year[9] - Net income attributable to Greif, Inc. decreased significantly to $8.6 million, down 87.8% from$ 67.2 million in the same quarter of 2024[9] - Basic earnings per share for Class A common stock dropped to $0.15, a decline of 87.9% from$ 1.17 in the previous year[9] - Net income for the three months ended January 31, 2025, was $14.4 million, a decrease of 80.6% compared to$ 74.3 million for the same period in 2024[14] - Total operating profit for the three months ended January 31, 2025, was $59.9 million, down 13.5% from$ 68.9 million in the same period of 2024[99] - Adjusted EBITDA for the three months ended January 31, 2025, was $145.1 million, up 5.9% from$ 137.0 million in the same period of 2024[123] Assets and Liabilities - Total assets as of January 31, 2025, were $6,585.7 million, a decrease from$ 6,647.6 million as of October 31, 2024[12] - Current liabilities increased to $1,217.8 million, compared to$ 1,014.4 million at the end of October 2024[13] - Long-term debt decreased to $2,422.2 million from$ 2,626.2 million as of October 31, 2024[13] - Total shareholders' equity as of January 31, 2025, was $2,078.9 million, down from$ 2,117.5 million as of October 31, 2024, a decrease of 1.8%[15] Cash Flow and Dividends - Cash and cash equivalents increased slightly to $201.1 million from$ 197.7 million at the end of October 2024[12] - The company declared cash dividends of $0.54 per share for Class A common stock, up from$ 0.52 in the previous year[9] - Dividends paid to Greif, Inc. shareholders were $31.0 million, compared to$ 29.7 million in the prior year, reflecting a 4.4% increase[15] - Net cash used in operating activities was $(30.8) million, a significant decline from$ 4.5 million provided in the same quarter last year[14] - Cash provided by financing activities increased to $62.5 million in Q1 2025 from$ 36.1 million in Q1 2024[151] Acquisitions and Restructuring - The Company acquired Ipackchem Group SAS for a total purchase price of $582.1 million, incurring transaction costs of$ 8.9 million[28] - Goodwill recognized from the Ipackchem acquisition amounted to $280.0 million, attributed to expected synergies and economies of scale[28] - The Company recorded restructuring charges of$ 2.7 million for the three months ended January 31, 2025, compared to $5.7 million for the same period in 2024[40] - The restructuring activities in 2025 focus on optimizing operations and transforming internal processes for long-term profitable earnings growth[39] Segment Performance - Customized Polymer Solutions segment reported net sales of$ 295.1 million, a 29.5% increase from $228.0 million in the same period of 2024[123] - Sustainable Fiber Solutions segment achieved net sales of$ 561.4 million, up 6.2% from $528.8 million in the same period of 2024[123] - Durable Metal Solutions segment net sales decreased to$ 342.2 million from $370.5 million in the same period of 2024, reflecting a decline of 7.0%[123] - Integrated Solutions segment reported net sales of$ 67.1 million, down from $78.5 million in the same period of 2024, a decrease of 14.3%[123] Financial Risks and Controls - The company continues to face risks including economic conditions, supply chain disruptions, and competitive pressures that may impact future performance[107] - There have been no material changes in the company's internal control over financial reporting during the most recent fiscal quarter[183] - The company's disclosure controls and procedures have been evaluated and deemed effective by the principal executive officer and principal financial officer[185] Other Financial Metrics - Depreciation, depletion, and amortization increased to$ 66.6 million from $60.4 million year-over-year, reflecting a rise of 3.2%[14] - SG&A expenses increased to$ 167.7 million in Q1 2025 from $145.8 million in Q1 2024, representing 13.2% of net sales compared to 12.1% in the previous year[127] - The company anticipates moderate increases in steel and resin prices, while other direct material prices are expected to remain stable throughout the year[129]