Financial Performance - Net sales for the three months ended January 31, 2023, were $1,271.0 million, a decrease of 18.7% compared to $1,564.3 million in the same period of 2022[8]. - Gross profit for the same period was $251.6 million, down from $289.7 million, reflecting a gross margin of 19.8% compared to 18.5% in the prior year[8]. - Net income for the three months ended January 31, 2023, was $93.1 million, a significant increase from $18.6 million in the same period of 2022, representing a growth of 400%[12]. - Operating profit increased to $156.4 million in Q1 2023, compared to $72.0 million in Q1 2022, representing a growth of 117.2%[120]. - EBITDA for the three months ended January 31, 2023, was $208.7 million, up from $130.7 million in Q1 2022, reflecting a 59.7% increase[121]. - Adjusted EBITDA decreased to $164.5 million in Q1 2023 from $196.8 million in Q1 2022, a decline of 16.4%[121]. Income and Earnings - Net income attributable to Greif, Inc. increased significantly to $89.9 million, compared to $10.3 million in the prior year, representing a year-over-year growth of 770.9%[8]. - Basic earnings per share attributable to Greif, Inc. common shareholders for Class A stock was $1.55, up from $0.17, and for Class B stock was $2.31, up from $0.25[8]. - Comprehensive income attributable to Greif, Inc. was $112.8 million, compared to a loss of $2.0 million in the prior year[9]. - Pro forma net income attributable to Greif, Inc. for the three months ended January 31, 2023, was $102.2 million, a significant increase from $9.5 million in the prior year[27]. Assets and Liabilities - Total assets as of January 31, 2023, were $5,690.6 million, an increase from $5,469.9 million as of October 31, 2022[10]. - Long-term debt increased to $2,143.9 million from $1,839.3 million, indicating a rise of 16.5%[11]. - Total shareholders' equity as of January 31, 2023, was $1,882.2 million, an increase from $1,794.3 million at the end of the previous fiscal year[13]. - The company reported a net cash provided by operating activities of $32.9 million, an increase from $22.4 million in the prior year[12]. Cash Flow and Dividends - Cash and cash equivalents rose to $161.0 million from $147.1 million, reflecting a 9.9% increase[10]. - The company declared cash dividends of $0.50 per share for Class A common stock and $0.74 for Class B common stock, compared to $0.46 and $0.68, respectively, in the prior year[8]. - Cash dividends paid for the three months ended January 31, 2023, were $28.9 million, compared to $27.2 million in the same period of 2022[74]. Acquisitions and Investments - The Company completed the acquisition of Lee Container Corporation for a total purchase price of $302.8 million, incurring transaction costs of $5.1 million[20]. - Lee Container contributed net sales of $18.0 million for the three months ended January 31, 2023[25]. - The company plans to acquire an 80% stake in Centurion Container LLC for $145.0 million, expected to close in the second fiscal quarter of 2023[91][92]. Restructuring and Charges - The Company recorded restructuring charges of $2.4 million for the three months ended January 31, 2023, compared to $3.5 million in the same period of 2022[31]. - The Company expects to incur remaining restructuring costs of $7.7 million as of January 31, 2023[32]. Market Conditions and Risks - The company continues to face risks related to economic conditions, supply chain disruptions, and competitive pressures that may impact future performance[104]. - The company anticipates continued lower customer demand patterns through Q2 2023, with expectations for steel and resin prices to trend upward but no significant inflationary trends expected[127].
Greif(GEF_B) - 2023 Q1 - Quarterly Report