Greif(US:GEF)2023-06-07 16:00Financial Performance - Net sales for the three months ended April 30, 2023, were $1,308.9 million, a decrease of 21.5% compared to $1,667.3 million in the same period of 2022[9]. - Gross profit for the six months ended April 30, 2023, was $563.4 million, down from $628.4 million in 2022, reflecting a decline of 10.4%[9]. - Net income attributable to Greif, Inc. for the three months ended April 30, 2023, was $111.2 million, compared to $125.1 million in 2022, a decrease of 11.1%[9]. - Basic earnings per share for Class A common stock decreased to $1.91 for the three months ended April 30, 2023, from $2.11 in 2022, a decline of 9.5%[9]. - Comprehensive income for the three months ended April 30, 2023, was $107.2 million, down from $218.3 million in 2022, a decrease of 50.9%[10]. - Net income for the six months ended April 30, 2023, was $209.1 million, an increase of 43.9% compared to $145.3 million in the same period of 2022[13]. - Total operating profit for the six months ended April 30, 2023, was $337.5 million, compared to $262.1 million for the same period in 2022, marking a significant increase of 28.7%[107]. - Adjusted EBITDA for Q2 2023 was $228.6 million, down from $251.0 million in Q2 2022, a decrease of $22.4 million[142]. - Adjusted EBITDA decreased to $393.1 million in the first half of 2023 from $447.8 million in 2022, a decline of 12.2%[173]. Assets and Liabilities - Total assets increased to $5,911.5 million as of April 30, 2023, compared to $5,469.9 million as of October 31, 2022, an increase of 8.0%[11]. - Long-term debt rose to $2,206.1 million as of April 30, 2023, from $1,839.3 million as of October 31, 2022, an increase of 19.9%[12]. - Cash and cash equivalents increased to $158.5 million as of April 30, 2023, compared to $147.1 million as of October 31, 2022, an increase of 9.5%[11]. - As of April 30, 2023, total shareholders' equity was $1,914.9 million, reflecting an increase from $1,882.2 million at the beginning of the period[15]. - The total long-lived assets, net, increased to $1,822.2 million as of April 30, 2023, from $1,710.9 million as of October 31, 2022, indicating a growth of 6.5%[108]. Cash Flow and Investments - Net cash provided by operating activities increased to $243.7 million, up from $161.6 million year-over-year[13]. - The company reported a net cash used in investing activities of $451.0 million, significantly higher than the $62.7 million provided in the previous year[13]. - The company invested $91.1 million in capital expenditures during the first half of 2023, compared to $75.0 million in the same period of 2022[189]. Dividends and Share Repurchase - The company declared cash dividends of $0.50 per share for Class A common stock for the six months ended April 30, 2023, compared to $0.46 in 2022, an increase of 8.7%[9]. - Dividends paid to Greif, Inc. shareholders totaled $57.9 million, slightly up from $54.6 million in the previous year[15]. - The Company authorized a stock repurchase program of up to $150.0 million, with $75.0 million executed through an accelerated share repurchase agreement and an additional $75.0 million through open market purchases, completed by May 26, 2023[92][94]. - As of April 30, 2023, the Company repurchased $25.0 million of Class A Common Stock (406,343 shares) and $45.7 million of Class B Common Stock (619,804 shares) under the open market purchase program[94]. Acquisitions and Restructuring - The total purchase price for the acquisition of Centurion Container LLC was $144.5 million, increasing the Company's ownership interest from approximately 10% to 80%[23]. - The total purchase price for the Lee Container acquisition was $302.8 million, with transaction costs of $5.1 million incurred[30]. - The Company completed the Centurion Acquisition on March 31, 2023, enhancing its Global Industrial Packaging segment[104]. - The Lee Container Acquisition was completed on December 15, 2022, also strengthening the Global Industrial Packaging segment[105]. - Restructuring charges for the six months ended April 30, 2023, totaled $4.8 million, down from $7.2 million for the same period in 2022[43]. Segment Performance - The Global Industrial Packaging segment reported net sales of $748.2 million in Q2 2023, down from $971.7 million in Q2 2022, a decrease of $223.5 million[145]. - Operating profit for the Global Industrial Packaging segment was $111.3 million for the three months ended April 30, 2023, compared to $108.0 million in the same period of 2022, indicating a growth of 2.4%[107]. - Operating profit in the Paper Packaging & Services segment rose to $176.7 million, an increase of 50.9% from $118.4 million in the first half of 2022[179]. Debt and Financing - The company entered into a new $300.0 million senior secured credit agreement on May 17, 2023, to refinance a portion of the outstanding borrowings under the 2022 Credit Agreement[51]. - The company has outstanding borrowings of $1,940.7 million under the 2022 Credit Agreement, with a current portion of $80.8 million and a long-term portion of $1,859.9 million[49]. - The interest under the 2023 Credit Agreement is based on SOFR plus a credit spread adjustment, with a calculated margin based on the company's leverage ratio[203]. Tax and Impairment - For the six months ended April 30, 2023, the company recorded income tax expense of $76.8 million, an increase of $11.3 million compared to $65.5 million for the same period in 2022[81]. - The company recorded impairment charges of $1.8 million related to long-lived assets during the six months ended April 30, 2023, compared to no impairment charges in the same period of 2022[72]. Environmental and Land Management - The company continues to focus on sustainable long-term yields in its Land Management segment, owning approximately 175,000 acres of timber property as of April 30, 2023[121]. - The company had approximately 175,000 acres of timber properties as of April 30, 2023, with ongoing reviews to maximize the value of these properties[153].