Greif CEO Ole Rosgaard on strategizing for the next 148 years

Core Viewpoint - Greif aims to double its market capitalization and share price by adopting a holistic approach to business value creation, focusing on strategic changes and operational efficiency [1][3]. Business Performance - Greif reported net sales of $994.8 million for the first quarter of its fiscal year, reflecting a 2.2% decline due to broader economic conditions [2]. - The company is optimistic about exceeding last year's performance, with expectations of growth if market conditions improve [3]. Strategic Changes - Under CEO Ole Rosgaard, Greif has undergone significant restructuring, including divestitures, closures, and workforce reductions, to enhance operational efficiency [3][10]. - The company plans to sell its timberland, which has generated approximately $9 million in EBITDA annually, to reduce debt and save on interest costs [4][5]. Market Positioning - Greif seeks to redefine its identity beyond being perceived as a paper company, aiming to be a leader in premium packaging [6][12]. - The company faces competition from larger containerboard firms and recognizes the need to adapt to a shrinking customer base [7][8]. Organizational Structure - Greif has restructured its strategic business units (SBUs) to focus on manufacturing technologies rather than regional operations, enhancing depth in product expertise [14][15]. - A new commercial function has been established to streamline sales efforts across the entire product portfolio, improving customer engagement [16]. Economic Outlook - The company operates in a challenging recessionary environment, with no immediate signs of recovery anticipated in 2026 [17][18]. - Greif is focused on long-term strategies rather than short-term responses to economic fluctuations, emphasizing sustainable growth [21][23]. Employee Engagement - Despite workforce reductions, Greif has received recognition for employee engagement and is committed to transparent communication regarding strategic changes [24][26]. - The leadership emphasizes the importance of maintaining morale and respect for employees during transitions [25]. Future Prospects - Greif is excited about the potential for growth and operational readiness, likening the company to a finely tuned machine [27][28].