Greif(US:GEF)2025-03-03 18:02Financial Performance - Net income decreased 87.2% to $8.6 million or $0.15 per diluted Class A share compared to $67.2 million or $1.17 per diluted Class A share in the prior year quarter[6] - Net income attributable to Greif, Inc. decreased to $8.6 million, down 87.8% from $67.2 million in the prior year[31] - Net income for the three months ended January 31, 2025, was $14.4 million, a decrease of 80.6% compared to $74.3 million in the same period of 2024[39] - Net income for the trailing twelve months ended January 31, 2025, was $228.8 million, down from $360.3 million for the same period in 2024, representing a decrease of approximately 36.4%[48] - Basic earnings per share attributable to Greif, Inc. common shareholders for Class A common stock was $0.15, a decline of 87.9% from $1.17 in the same quarter of 2024[31] - The company reported a net cash used in operating activities of $30.8 million, compared to a net cash provided of $4.5 million in the same quarter of 2024[35] Revenue and Sales - Net sales for the three months ended January 31, 2025, were $1,265.8 million, an increase of 4.1% compared to $1,205.8 million in the same period of 2024[31] - Customized Polymer Solutions net sales increased by $67.1 million to $295.1 million, primarily due to $58.5 million from recent acquisitions[12] - Sustainable Fiber Solutions net sales increased by $32.6 million to $561.4 million, driven by $25.8 million from higher containerboard and boxboard prices[16] - The Durable Metal Solutions segment reported net sales of $342.2 million, a decrease of 7.6% from $370.5 million in the prior year[37] Adjusted EBITDA and Cash Flow - Adjusted EBITDA increased 5.9% to $145.1 million compared to $137.0 million in the prior year[6] - Total Adjusted EBITDA for the three months ended January 31, 2025, was $145.1 million, an increase of 5.9% compared to $137.0 million in the same period of 2024[37] - Adjusted EBITDA for the trailing twelve months ended January 31, 2025, was $712.4 million, a decline of 11.2% compared to $802.4 million for the same period in 2024[48] - Free cash flow for the three months ended January 31, 2025, was negative $66.5 million, compared to negative $51.1 million in the same period of 2024[43] - Projected free cash flow for fiscal 2025 is estimated at $220.0 million, with adjusted free cash flow expected to be $245.0 million[50] Debt and Liabilities - Total debt increased by $548.4 million to $2,840.2 million, primarily due to the acquisition of Ipackchem[6] - Total debt increased to $2,840.2 million as of January 31, 2025, from $2,291.8 million a year earlier, resulting in a net debt of $2,639.1 million[46] - The leverage ratio increased to 3.63x from 2.46x in the prior year quarter[6] - The leverage ratio increased to 3.63x as of January 31, 2025, compared to 2.46x a year earlier, showing a significant rise in leverage[48] - Total liabilities decreased to $4,375.8 million as of January 31, 2025, from $4,400.2 million as of October 31, 2024[33] Cost Management and Optimization - The company announced the closure of specific paperboard machines and mills as part of its cost optimization strategy, achieving $13.0 million in annual run-rate savings[6] - The company incurred non-cash asset impairment charges of $13.7 million during the quarter, compared to $1.3 million in the same period last year[31] - Restructuring charges amounted to $2.7 million for the three months ended January 31, 2025, compared to $5.7 million in the same period of 2024[39] - Cash paid for purchases of properties, plants, and equipment was $35.7 million for the three months ended January 31, 2025, down from $55.6 million in the prior year[43] Future Guidance - Fiscal 2025 low-end guidance for adjusted EBITDA is set at $710 million and adjusted free cash flow at $245 million[23] - Cash paid for purchases of properties, plants, and equipment is projected to be $171.0 million for fiscal 2025[50] - Cash paid for acquisition and integration-related costs is estimated at $17.0 million for fiscal 2025[50] - Cash paid for integration-related ERP systems and equipment is projected to be $6.0 million for fiscal 2025[50] - Cash paid for fiscal year-end change costs is estimated at $2.0 million for fiscal 2025[50]