Greif(GEF) ZACKS·2024-09-05 16:35Core Viewpoint - Greif, Inc. has opened a new facility in Pasir Gudang, Johor, aimed at expanding its business and enhancing its packaging solutions while maintaining quality and sustainability standards [1][2]. Group 1: New Facility and Capabilities - The new factory in Pasir Gudang will produce Intermediate Bulk Containers for various industries, including food, chemicals, and lubricants, utilizing advanced manufacturing technologies [2]. - The facility is expected to contribute to regional growth by creating job opportunities, supported by Johor's robust infrastructure [3]. Group 2: Recent Investments - In March 2024, Greif acquired IPACKCHEM, a leader in premium barrier and non-barrier jerry cans, which is anticipated to positively impact Greif's EBITDA margin and free cash flow [4]. - In October 2023, the company acquired Reliance Products, enhancing its portfolio with high-performance barrier technologies [5]. Group 3: Financial Performance - For Q3 fiscal 2024, Greif reported adjusted EPS of 1.17, with a year-over-year decline of 41.1% [6]. - Sales increased by 9.3% year-over-year to 1.42 billion, driven by higher volumes and recent acquisitions [6]. Group 4: Future Estimates - The Zacks Consensus Estimate for Q4 fiscal 2024 earnings is 1.56, with revenue expectations of $1.42 billion, reflecting an 8.4% growth year-over-year [7]. Group 5: Share Price Performance - Greif's shares have decreased by 11.5% over the past year, contrasting with the industry's growth of 23.1% [8].