Financial Performance - Net sales for the three months ended January 31, 2024, were $1,205.8 million, a decrease of 5.1% compared to $1,271.0 million in the same period of 2023[8]. - Gross profit decreased to $221.6 million, down 11.9% from $251.6 million year-over-year[8]. - Operating profit fell to $68.9 million, a decline of 56.0% from $156.4 million in the prior year[8]. - Net income attributable to Greif, Inc. was $67.2 million, down 25.5% from $89.9 million in the same quarter of 2023[8]. - Basic earnings per share for Class A common stock decreased to $1.17, down from $1.55 in the previous year, representing a decline of 24.5%[8]. - Comprehensive income attributable to Greif, Inc. was $55.9 million, down from $112.8 million, a decrease of 50.5%[9]. - Net income for the three months ended January 31, 2024, was $74.3 million, a decrease of 20.5% compared to $93.1 million for the same period in 2023[13]. - Adjusted EBITDA for Q1 2024 was $128.0 million, a decrease of $36.5 million (22.2%) compared to $164.5 million in Q1 2023[112]. Assets and Liabilities - Total assets as of January 31, 2024, were $5,969.1 million, slightly up from $5,960.8 million at October 31, 2023[12]. - Long-term debt increased to $2,185.3 million from $2,121.4 million, reflecting a rise of 3.0%[12]. - The total shareholders' equity as of January 31, 2024, was $2,036.4 million, up from $1,882.2 million a year earlier, indicating growth in equity[14]. - As of January 31, 2024, long-term debt was $2,185.3 million, up from $2,121.4 million as of October 31, 2023[45]. Cash Flow - Cash flows from operating activities provided $4.5 million, down from $32.9 million year-over-year, reflecting a significant decline in cash generation[13]. - Total cash and cash equivalents at the end of the period were $179.3 million, compared to $161.0 million at the end of January 31, 2023[13]. - Net cash used in investing activities was $53.6 million, a decrease from $269.1 million in the same quarter last year, indicating reduced investment outflows[13]. - The company paid dividends of $29.7 million to shareholders, reflecting a slight increase from $28.9 million in the previous year[14]. Segment Performance - Operating profit for the Global Industrial Packaging segment increased to $50.9 million in Q1 2024 from $45.9 million in Q1 2023, while the Paper Packaging & Services segment saw a significant decline from $109.1 million to $16.8 million[88]. - The Global Industrial Packaging segment generated net sales of $686.6 million in Q1 2024, compared to $705.8 million in Q1 2023, reflecting a decrease of 2.5%[87]. - The Paper Packaging & Services segment's net sales decreased to $514.6 million in Q1 2024 from $560.2 million in Q1 2023, a decline of 8.1%[87]. - Net sales in the Land Management segment were $4.6 million for Q1 2024, down from $5.0 million in Q1 2023, while gross profit decreased to $1.9 million from $2.1 million[123]. Acquisitions - The Company acquired a 51% ownership interest in ColePak for a total purchase price of $74.6 million, with a fair value of the remaining noncontrolling interest at $72.1 million[22]. - The acquisition of Centurion Container LLC was completed for $144.5 million, increasing the Company's ownership from approximately 10% to 80%, with a fair value of the remaining noncontrolling interest at $40.9 million[26]. - The total purchase price for the Lee Container Corporation acquisition was $303.0 million, with identifiable net assets recognized at $227.1 million and goodwill of $75.9 million[33]. - Goodwill recognized from the ColePak acquisition was $60.1 million, attributed to expected synergies and expanded market presence[23]. - The Company recognized goodwill of $95.4 million from the Centurion acquisition, reflecting enhanced business network and market presence[29]. Restructuring and Expenses - Restructuring charges for the three months ended January 31, 2024, totaled $5.7 million, an increase from $2.4 million in the same period of 2023[43]. - SG&A expenses increased to $145.8 million in Q1 2024, up $6.4 million (4.6%) from $139.4 million in Q1 2023, representing 12.1% of net sales compared to 11.0%[111]. - The company recorded a depreciation, depletion, and amortization expense of $60.4 million, an increase of 9.6% from $55.1 million in the prior year[13]. 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[92]. - The company anticipates slight increases in prices for old corrugated containers and a slight decrease in steel prices, with stable prices for resin and other direct materials expected throughout the year[113]. Tax and Other Financial Matters - The company reported a significant decrease in income tax expense, with a benefit of $(38.2) million for the three months ended January 31, 2024, compared to an expense of $37.7 million in 2023, resulting in a net decrease of $75.9 million[74]. - The estimated net decrease in unrecognized tax benefits for the next 12 months ranges from zero to $5.7 million[133].
Greif(GEF_B) - 2024 Q1 - Quarterly Report