Financial Performance - Net income decreased by 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[6] - Net income attributable to Greif, Inc. was $8.6 million, a significant decrease of 87.8% compared to $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, down from $1.17 in the same quarter of 2024[31] - The company reported an operating profit of $59.9 million for the three months ended January 31, 2025, down 13.0% from $68.9 million in the same period of 2024[39] 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] - Customized Polymer Solutions segment net sales increased to $295.1 million, a rise of 29.4% from $228.0 million in the prior year[37] Adjusted EBITDA - Adjusted EBITDA increased by 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% from $137.0 million in the prior year[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] Debt and Liabilities - Total debt increased by $548.4 million to $2,840.2 million, primarily due to the acquisition of Ipackchem, resulting in a leverage ratio increase to 3.63x from 2.46x[6] - Total debt increased to $2,840.2 million as of January 31, 2025, compared to $2,291.8 million a year earlier, representing a rise of 24.0%[46] - Net debt rose to $2,639.1 million as of January 31, 2025, compared to $2,112.5 million in the prior year, indicating an increase of 25.0%[46] - Total liabilities decreased to $3,158.0 million as of January 31, 2025, from $3,385.8 million as of October 31, 2024[33] - Adjusted net debt as of January 31, 2025, was $2,558.4 million, compared to $1,989.9 million for the same period in 2024, indicating an increase of about 28.5%[48] - The leverage ratio increased to 3.63x as of January 31, 2025, compared to 2.46x a year prior, highlighting a significant rise in financial leverage[48] Cash Flow - The company reported a net cash used in operating activities of $(30.8) million, a decline from $4.5 million in the same quarter of 2024[35] - Cash and cash equivalents at the end of the period were $201.1 million, compared to $179.3 million at the end of the same period in 2024[35] - Free cash flow for the three months ended January 31, 2025, was $(66.5) million, compared to $(51.1) million in the same period of 2024, reflecting a decline of 30.0%[43] - The company reported a net cash provided by operating activities of $391.0 million for fiscal 2025[50] Guidance and Projections - Fiscal 2025 low-end guidance for Adjusted EBITDA is set at $710 million and for Adjusted free cash flow at $245 million[23] - 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] - Cash paid for purchases of properties, plants, and equipment is estimated at $171.0 million, impacting overall cash flow[50] Operational Changes - The closure of the A1 uncoated recycled paperboard machine in Austell, GA, and the containerboard and uncoated recycled paperboard mill in Fitchburg, MA, was announced[6] - The company is actively managing a period of industrial contraction while transforming internal processes for long-term profitable earnings growth[5] Taxation - The company recorded an income tax rate of 35.8% for the first quarter, with an expected range of 27.0% to 32.0% for fiscal 2025[20] - The effective tax rate for the three months ended January 31, 2025, was 35.8%, compared to a negative tax rate of 107.3% in the same period of 2024[44]
Greif(GEF_B) - 2025 Q1 - Quarterly Results