Greif(US:GEF)2024-12-05 22:17Financial 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].