Greif(GEF_B) - 2024 Q4 - Annual Results

Financial Performance - Net income for Q4 2024 decreased by 6.5% to $63.4 million, or$1.08 per diluted Class A share, compared to $67.8 million, or$1.16 per diluted Class A share in Q4 2023[3] - Adjusted EBITDA for Q4 2024 decreased by 2.0% to $197.6 million, down from$201.6 million in Q4 2023[3] - For the fiscal year 2024, net income decreased by 27.0% to $262.1 million, or$4.52 per diluted Class A share, compared to $359.2 million, or$6.15 per diluted Class A share in fiscal year 2023[4] - Adjusted free cash flow for fiscal year 2024 decreased by $291.4 million to$189.8 million[4] - Net income for the three months ended October 31, 2024, was $68.8 million, a decrease of 6.1$73.3 million in the same period last year[40] - The company reported a decrease in asset impairments to $0.7 million for the three months ended October 31, 2024, down from$16.9 million in the prior year[40] - The company reported a loss on disposal of businesses amounting to $46.0 million, which negatively affected overall financial performance[58] - The company reported net income of$288.7 million for the trailing twelve months ended October 31, 2024, down from $379.1 million in the previous year, a decline of 23.9$525.5 million to $2,740.6 million, with a leverage ratio rising to 3.53x from 2.2x in the prior year quarter[4] - Long-term debt increased to$2,626.2 million as of October 31, 2024, compared to $2,121.4 million a year earlier, reflecting a significant rise in leverage[37] - Net debt as of October 31, 2024, was$2,542.9 million, up from $2,034.2 million a year earlier, indicating an increase of 25$2,740.6 million, an increase from $2,215.1 million in the previous year, representing a rise of 23.6$65.9 million to $786.9 million, primarily due to contributions from recent acquisitions and higher volumes[14] - Net sales for the three months ended October 31, 2024, were$1,417.1 million, an increase of 8.3% compared to $1,308.4 million for the same period in 2023[34] - Total net sales for the fiscal year ended October 31, 2024, reached$3,405.7 million, a 2.2% increase from $3,332.3 million in 2023[65] Operational Efficiency - The company announced a targeted cost optimization effort to eliminate$100 million of structural costs through SG&A rationalization and operational efficiency gains[6] - The company is focused on strategic initiatives to enhance market presence and operational efficiency, as evidenced by ongoing restructuring and integration efforts[58] Cash Flow - Cash provided by operating activities was $187.2 million for the three months ended October 31, 2024, compared to$203.5 million in the same period last year[40] - Net cash used in investing activities was $45.5 million for the three months ended October 31, 2024, a significant improvement from a net cash outflow of$173.5 million in the prior year[40] - Free Cash Flow for the three months ended October 31, 2024, was $142.1 million, an increase from$126.3 million in the prior year[55] - Adjusted Free Cash Flow for the three months ended October 31, 2024, was $144.7 million, compared to$136.2 million in the prior year[55] Future Outlook - The company expects low-end guidance for fiscal 2025 Adjusted EBITDA at $675 million and Adjusted free cash flow at$225 million[24] - The company will host an Investor Day on December 11, 2024, to discuss strategic actions and future outlook[5]