Financial Performance - Net income decreased by 60.1% to $44.4 million or $0.77 per diluted Class A share compared to $111.2 million or $1.90 per diluted Class A share in the prior year[6] - Adjusted EBITDA decreased by 25.7% to $169.9 million compared to $228.6 million in the same quarter last year[6] - Net income attributable to Greif, Inc. for the three months ended April 30, 2024, was $44.4 million, compared to $111.2 million in the same period of 2023, reflecting a decline of 60%[26] - Basic earnings per share for Class A common stock decreased to $0.77 for the three months ended April 30, 2024, from $1.91 in the same period of 2023, a drop of 59.6%[26] - Net income for the three months ended April 30, 2024, was $52.0 million, a decrease of 55.2% compared to $116.0 million in the same period of 2023[30] - Gross profit for the six months ended April 30, 2024, was $491.7 million, down from $563.4 million in 2023, indicating a decrease of 12.7%[26] - Gross profit for the three months ended April 30, 2024, was $270.1 million, down 13.3% from $311.8 million in the same period of 2023[32] - Operating profit for the three months ended April 30, 2024, decreased to $98.1 million, a decline of 45.8% compared to $181.1 million in the same period of 2023[32] - Net cash provided by operating activities for the six months ended April 30, 2024, was $92.0 million, compared to $243.7 million for the same period in 2023, reflecting a decrease of 62.2%[30] - Total adjusted EBITDA for the six months ended April 30, 2024, was $297.9 million, down 24.2% from $393.1 million in the same period of 2023[34] - Net income for the trailing twelve months ended April 30, 2024, was $296.3 million, down from $457.8 million in the same period last year, representing a decrease of 35.2%[43] - Adjusted EBITDA for the trailing twelve months ended April 30, 2024, was $723.6 million, a decline of 16.1% compared to $862.8 million for the same period last year[43] Sales and Revenue - Net sales for Global Industrial Packaging increased by $56.6 million to $804.8 million, driven by higher volumes and average selling prices[10] - Net sales for Paper Packaging & Services increased by $6.0 million to $560.8 million, primarily due to higher volumes despite lower average selling prices[13] - Net sales for the three months ended April 30, 2024, were $1,371.0 million, an increase from $1,308.9 million in the same period of 2023, representing a growth of 4.8%[26] - Total net sales for the three months ended April 30, 2024, increased to $1,371.0 million, up 4.7% from $1,308.9 million in the same period of 2023[32] - The Global Industrial Packaging segment reported net sales of $804.8 million for the three months ended April 30, 2024, an increase of 7.5% from $748.2 million in the same period of 2023[32] Debt and Financial Position - Total debt increased by $626.9 million to $2,916.1 million, primarily due to the acquisition of Ipackchem, resulting in a leverage ratio increase to 3.44x from 2.53x sequentially[6] - Long-term debt rose to $2,782.9 million as of April 30, 2024, compared to $2,121.4 million as of October 31, 2023, an increase of 31.1%[28] - The total debt as of April 30, 2024, was $2,916.1 million, an increase from $2,291.8 million as of January 31, 2024[41] - The net debt increased to $2,720.1 million as of April 30, 2024, compared to $2,112.5 million as of January 31, 2024[41] - The leverage ratio as of April 30, 2024, was 3.44x, compared to 2.25x a year ago, indicating increased financial leverage[43] Cash Flow and Projections - Adjusted free cash flow for fiscal 2024 is projected to be between $175 million and $225 million[18] - Projected free cash flow for fiscal 2024 ranges from $144.0 million to $188.0 million, with adjusted free cash flow expected to be between $175.0 million and $225.0 million[45] - The adjusted free cash flow for the six months ended April 30, 2024, was $185.5 million, up from $177.9 million for the same period in 2023, indicating a 4.3% growth[38] Acquisitions and Strategic Initiatives - The company completed the acquisition of Ipackchem on March 26, 2024, enhancing its position in high-performance small plastic containers[6] - The company reported acquisition and integration related costs of $11.5 million for the three months ended April 30, 2024, compared to $4.6 million in the same period of 2023[26] - Greif will host its Investor Day in New York City on December 11, 2024, to provide further insights into its strategic objectives[6] Customer Satisfaction - Customer satisfaction index (CSI) score was 92.6, with the Paper Packaging & Services segment at 93.7 and Global Industrial Packaging at 91.4[5] Risks and Challenges - The company highlighted potential risks including economic conditions, competitive pressures, and supply chain disruptions that could impact future performance[24]
Greif(GEF_B) - 2024 Q2 - Quarterly Results