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Greif(GEF_B) - 2025 Q2 - Quarterly Results
GEF_BGreif(GEF_B)2025-06-09 17:22

Financial Performance - Net income increased by 6.5% to 47.3million,or47.3 million, or 0.82 per diluted Class A share, compared to 44.4million,or44.4 million, or 0.77 per diluted Class A share in the prior year[6]. - Adjusted EBITDA rose by 26.0% to 213.9million,upfrom213.9 million, up from 169.7 million[6]. - Net income attributable to Greif, Inc. for the three months ended April 30, 2025, was 47.3million,upfrom47.3 million, up from 44.4 million in the same period of 2024, representing a 6.5% increase[31]. - Basic earnings per share attributable to Greif, Inc. common shareholders for Class A common stock was 0.82forthethreemonthsendedApril30,2025,comparedto0.82 for the three months ended April 30, 2025, compared to 0.77 for the same period in 2024, a 6.5% increase[31]. - Operating profit for the six months ended April 30, 2025, was 178.5million,comparedto178.5 million, compared to 167.0 million for the same period in 2024, indicating a 6.5% increase[31]. - For the three months ended April 30, 2025, the consolidated operating profit was 118.6million,asignificantincreasefrom118.6 million, a significant increase from 98.1 million in the same period of 2024, representing a growth of approximately 20.5%[41]. - Adjusted EBITDA for the six months ended April 30, 2025, reached 359.0million,comparedto359.0 million, compared to 306.7 million for the same period in 2024, indicating an increase of about 17%[42]. Cash Flow and Debt Management - Net cash provided by operating activities increased by 48.9millionto48.9 million to 136.4 million, while adjusted free cash flow increased by 50.6millionto50.6 million to 109.6 million[6]. - Cash provided by operating activities for the six months ended April 30, 2025, was 105.6million,comparedto105.6 million, compared to 92.0 million in 2024, marking a 14.8% increase[35]. - The company reported a net cash used in investing activities of (31.7)millionforthesixmonthsendedApril30,2025,comparedto(31.7) million for the six months ended April 30, 2025, compared to (662.6) million in 2024, showing a substantial reduction in cash outflow[35]. - The company experienced a net cash decrease of 116.2millionfromfinancingactivitiesforthethreemonthsendedApril30,2025,comparedtoanetcashincreaseof116.2 million from financing activities for the three months ended April 30, 2025, compared to a net cash increase of 548.8 million in 2024[35]. - Total debt decreased by 140.9millionto140.9 million to 2,775.2 million, and net debt decreased by 197.6millionto197.6 million to 2,522.5 million, resulting in a leverage ratio decrease to 3.3x from 3.4x[6][7]. - The company’s net debt as of April 30, 2025, was 2,522.5million,downfrom2,522.5 million, down from 2,720.1 million a year earlier[47]. - The leverage ratio as of April 30, 2025, was 3.3x, slightly improved from 3.4x a year prior[49]. Sales and Revenue Growth - Net sales for the three months ended April 30, 2025, were 1,385.7million,a1.91,385.7 million, a 1.9% increase from 1,371.0 million in the same period of 2024[31]. - Total net sales for the six months ended April 30, 2025, reached 2,651.5million,upfrom2,651.5 million, up from 2,576.8 million in 2024, indicating a growth of 2.9%[37]. - Customized Polymer Solutions net sales increased by 43.7millionto43.7 million to 329.3 million, primarily due to 38.8millionfromrecentacquisitions[10].SustainableFiberSolutionsnetsalesincreasedby38.8 million from recent acquisitions[10]. - Sustainable Fiber Solutions net sales increased by 19.0 million to 599.1million,drivenby599.1 million, driven by 29.0 million from higher containerboard and boxboard prices[14]. - Customized Polymer Solutions segment net sales increased to 329.3millionforthethreemonthsendedApril30,2025,from329.3 million for the three months ended April 30, 2025, from 285.6 million in 2024, a growth of 15.2%[37]. Cost Management and Savings - The company anticipates achieving 15.0millionto15.0 million to 25.0 million in run-rate savings from its cost optimization program by the end of fiscal year 2025[6]. - The company reported acquisition and integration related costs of 2.0millionforthethreemonthsendedApril30,2025,downfrom2.0 million for the three months ended April 30, 2025, down from 11.5 million in the same period of 2024[31]. - Restructuring and other charges for the same period amounted to 14.6million,contributingtotheoverallfinancialadjustments[45].Thecompanyincurred14.6 million, contributing to the overall financial adjustments[45]. - The company incurred 2.0 million in acquisition and integration related costs during the three months ended April 30, 2025[45]. Asset Management - Total assets as of April 30, 2025, were 6,754.4million,anincreasefrom6,754.4 million, an increase from 6,647.6 million as of October 31, 2024[33]. - Cash and cash equivalents increased to 252.7millionasofApril30,2025,from252.7 million as of April 30, 2025, from 197.7 million as of October 31, 2024[33]. - Long-term debt decreased to 2,290.9millionasofApril30,2025,from2,290.9 million as of April 30, 2025, from 2,626.2 million as of October 31, 2024[33]. - Total equity for Greif, Inc. increased to 2,134.1millionasofApril30,2025,comparedto2,134.1 million as of April 30, 2025, compared to 2,082.4 million as of October 31, 2024[33]. Taxation - The company recorded an income tax rate of 35.5% for the second quarter, with an expected range of 27.0% to 32.0% for fiscal 2025[20]. - Greif's income before income tax for the three months ended April 30, 2025, was $83.9 million, reflecting a significant operational performance[45].