Financial Performance - Net sales for the three months ended July 31, 2023, were $1,330.3 million, a decrease of 18% compared to $1,622.1 million in the same period of 2022[8]. - Gross profit for the nine months ended July 31, 2023, was $870.4 million, down from $975.3 million in the same period of 2022, reflecting a decrease of approximately 11%[8]. - Operating profit for the three months ended July 31, 2023, was $155.6 million, a decline of 24% from $205.7 million in the same period of 2022[8]. - Net income attributable to Greif, Inc. for the three months ended July 31, 2023, was $90.3 million, down 36% from $141.8 million in the same period of 2022[8]. - Basic earnings per share attributable to Greif, Inc. common shareholders for the three months ended July 31, 2023, were $1.57, compared to $2.38 for the same period in 2022, a decrease of 34%[8]. - Comprehensive income for the nine months ended July 31, 2023, was $331.7 million, compared to $339.5 million for the same period in 2022[9]. - Net income for the nine months ended July 31, 2023, increased to $305.8 million, up from $291.4 million in the same period of 2022, representing a growth of 4.8%[13]. - Total net sales for the nine months ended July 31, 2023, were $3,910.2 million, down from $4,853.7 million in the same period of 2022, indicating a decrease of about 19%[111]. Assets and Liabilities - Total assets as of July 31, 2023, increased to $5,873.5 million from $5,469.9 million as of October 31, 2022, representing an increase of approximately 7.4%[11]. - Long-term debt as of July 31, 2023, was $2,081.4 million, an increase from $1,839.3 million as of October 31, 2022[12]. - Cash and cash equivalents as of July 31, 2023, were $157.7 million, up from $147.1 million as of October 31, 2022[11]. - The company reported a decrease in inventories by $49.9 million, contrasting with a decrease of $63.3 million in the previous year, indicating improved inventory management[13]. - As of July 31, 2023, total shareholders' equity increased to $1,988.8 million, up from $1,914.9 million at the end of April 2023, reflecting a positive trend in equity growth[15]. Cash Flow and Investments - Net cash provided by operating activities for the nine months ended July 31, 2023, was $446.0 million, compared to $370.9 million in 2022, reflecting an increase of 20.3%[13]. - Cash flows used in investing activities totaled $(496.7) million for the nine months ended July 31, 2023, compared to $34.7 million provided in 2022, indicating a significant shift in investment strategy[13]. - Proceeds from the issuance of long-term debt amounted to $1,915.1 million, while payments on long-term debt were $1,640.2 million, resulting in a net cash inflow from financing activities of $62.0 million[13]. - The company paid dividends of $86.7 million to shareholders, slightly up from $82.0 million in the previous year, reflecting a commitment to returning value to shareholders[13]. - Share repurchases amounted to $63.9 million, compared to $60.0 million in the prior year, indicating ongoing efforts to manage capital structure[13]. Acquisitions and Restructuring - Greif, Inc. completed the acquisition of Centurion Container LLC on March 31, 2023, for a total purchase price of $144.5 million, increasing its ownership from approximately 10% to 80%[23]. - The company reported acquisition and integration-related costs of $15.5 million for the nine months ended July 31, 2023, compared to $5.8 million in the same period of 2022[8]. - The total purchase price for the acquisition of Lee Container was $302.8 million, with transaction costs of $5.1 million incurred[30]. - The Company recorded restructuring charges of $13.5 million for the nine months ended July 31, 2023, compared to $10.3 million for the same period in 2022[45]. - The Tama Divestiture resulted in a gain on sale of business of $54.3 million, including $22.5 million of allocated goodwill[42]. Segment Performance - The Global Industrial Packaging segment reported net sales of $761.8 million for the three months ended July 31, 2023, compared to $906.7 million in the same period of 2022, reflecting a decline of approximately 16%[110]. - The Paper Packaging & Services segment reported net sales of $563.9 million for the three months ended July 31, 2023, down from $710.2 million in the same period of 2022, a decline of about 20%[110]. - The Global Industrial Packaging segment's operating profit for the nine months ended July 31, 2023, was $259.2 million, compared to $246.2 million in the same period of 2022, showing an increase of about 5%[111]. - Total operating profit for the nine months ended July 31, 2023, increased to $493.1 million from $467.8 million in 2022, reflecting a growth of 5%[175]. Debt and Financing - The company's long-term debt as of July 31, 2023, totals $2,081.4 million, an increase from $1,839.3 million as of October 31, 2022[47]. - The weighted average interest rate for borrowings under the 2022 and 2023 Credit Agreements was 5.63% for the nine months ended July 31, 2023, with an actual interest rate of 6.77% as of the same date[54]. - The company has a $300.0 million senior secured credit agreement (2023 Credit Agreement) that commenced on May 17, 2023, to refinance a portion of the outstanding borrowings under the 2022 Credit Agreement[51]. - The overall long-term debt increased by $261.8 million, or approximately 13.5%, compared to the previous year[204]. Tax and Expenses - Income tax expense for the nine months ended July 31, 2023, was $107.9 million, an increase of $2.5 million from $105.4 million in the same period of 2022[85]. - The total lease cost for the nine months ended July 31, 2023, was $71.8 million, up from $66.8 million in the same period of 2022, reflecting an increase of 7.5%[103]. - SG&A expenses decreased to $412.3 million in the first nine months of 2023 from $440.6 million in 2022, representing 10.5% of net sales compared to 9.1% in 2022[180].
Greif(GEF_B) - 2023 Q3 - Quarterly Report