Greif(GEF_B) - 2025 Q1 - Quarterly Report

Financial Performance - Net sales for the three months ended January 31, 2025, increased to $1,265.8 million, up 4.1$1,205.8 million in the same period of 2024[9]. - Gross profit rose to $245.5 million, representing a 10.8$221.6 million in the prior year[9]. - Net income attributable to Greif, Inc. decreased significantly to $8.6 million, down 87.8$67.2 million in the same quarter of 2024[9]. - Basic earnings per share for Class A common stock dropped to $0.15, a decline of 87.9$1.17 in the previous year[9]. - Net income for the three months ended January 31, 2025, was $14.4 million, a decrease of 80.6$74.3 million for the same period in 2024[14]. - Total operating profit for the three months ended January 31, 2025, was $59.9 million, down from$68.9 million in 2024, a decrease of 13.0%[123]. - Adjusted EBITDA for the same period was $145.1 million, up 5.9$137.0 million in 2024[123]. Assets and Liabilities - Total assets as of January 31, 2025, were $6,585.7 million, a decrease from$6,647.6 million as of October 31, 2024[12]. - Long-term debt decreased to $2,422.2 million from$2,626.2 million, reflecting a reduction of 7.8%[13]. - Total shareholders' equity as of January 31, 2025, was $2,078.9 million, a decrease from$2,117.5 million as of October 31, 2024[15]. - The company reported accumulated other comprehensive loss of $384.6 million as of January 31, 2025, compared to$355.1 million as of October 31, 2024[94]. Cash Flow and Dividends - Cash flows from operating activities resulted in a net cash used of $30.8 million, contrasting with a net cash provided of$4.5 million in the prior year[14]. - The company paid dividends of $31.0 million to shareholders, slightly up from$29.7 million in the same quarter last year[15]. - Cash dividends paid to stockholders increased to $31.0 million in Q1 2025 from$29.7 million in Q1 2024[156]. Segment Performance - Operating profit for the Customized Polymer Solutions segment increased to $13.8 million in Q1 2025 from$11.7 million in Q1 2024, reflecting a growth of 17.9%[99]. - The Sustainable Fiber Solutions segment reported a decline in operating profit to $3.6 million in Q1 2025 from$8.2 million in Q1 2024, a decrease of 56.1%[99]. - Customized Polymer Solutions segment reported net sales of $295.1 million, a 29.5$228.0 million in 2024[123]. - Durable Metal Solutions segment net sales decreased to $342.2 million from$370.5 million, reflecting a decline of 7.0%[123]. - Sustainable Fiber Solutions segment achieved net sales of $561.4 million, an increase of 6.2$528.8 million in 2024[123]. - Integrated Solutions segment net sales decreased to $67.1 million from$78.5 million, a decline of 14.3%[123]. Acquisitions and Restructuring - The Company acquired Ipackchem Group SAS for a total purchase price of $582.1 million, incurring transaction costs of$8.9 million[28]. - Goodwill recognized from the Ipackchem acquisition amounted to $280.0 million, attributed to expected synergies and economies of scale[28]. - The restructuring charges recorded during the three months ended January 31, 2025, were$2.7 million, a decrease from $5.7 million in the same period of 2024[40]. - The restructuring activities in 2025 focus on optimizing operations and transforming internal processes for long-term profitable earnings growth[39]. Debt and Financing - The company has an outstanding amount of$2,524.3 million under the 2022 and 2023 Credit Agreements as of January 31, 2025[51]. - The company utilized $300.0 million from the Incremental Term Loan A-4 to repay funds drawn on the revolving credit facility for the acquisition of Ipackchem[47]. - The company has a secured revolving credit facility of$800.0 million, maturing on March 1, 2027[45]. Tax and Environmental Reserves - Income tax expense for the quarter was $7.8 million, a significant increase from an income tax benefit of$38.2 million in the same quarter of 2024[81]. - Environmental reserves increased to $19.5 million as of January 31, 2025, compared to$19.1 million as of October 31, 2024[88]. Other Financial Metrics - The company experienced an unrealized foreign exchange loss of $0.5 million in the current quarter, compared to a loss of$7.6 million in the same quarter last year[14]. - The company has various interest rate swaps with a total notional amount of $1,400.0 million, maturing between March 1, 2027, and July 16, 2029[59]. - The weighted average interest rate for borrowings under the 2022 and 2023 Credit Agreements was 5.98% for the three months ended January 31, 2025[51].