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Greif(GEF_B) - 2024 Q1 - Quarterly Report
GEF_BGreif(GEF_B)2024-02-28 16:00

Financial Performance - Net sales for the three months ended January 31, 2024, were 1,205.8million,adecreaseof5.11,205.8 million, a decrease of 5.1% compared to 1,271.0 million in the same period of 2023[8]. - Gross profit decreased to 221.6million,down11.9221.6 million, down 11.9% from 251.6 million year-over-year[8]. - Operating profit fell to 68.9million,adeclineof56.068.9 million, a decline of 56.0% from 156.4 million in the prior year[8]. - Net income attributable to Greif, Inc. was 67.2million,down25.567.2 million, down 25.5% from 89.9 million in the same quarter of 2023[8]. - Basic earnings per share for Class A common stock decreased to 1.17,downfrom1.17, down from 1.55 in the previous year, representing a decline of 24.5%[8]. - Comprehensive income attributable to Greif, Inc. was 55.9million,downfrom55.9 million, down from 112.8 million, a decrease of 50.5%[9]. - Net income for the three months ended January 31, 2024, was 74.3million,adecreaseof20.574.3 million, a decrease of 20.5% compared to 93.1 million for the same period in 2023[13]. - Adjusted EBITDA for Q1 2024 was 128.0million,adecreaseof128.0 million, a decrease of 36.5 million (22.2%) compared to 164.5millioninQ12023[112].AssetsandLiabilities−TotalassetsasofJanuary31,2024,were164.5 million in Q1 2023[112]. Assets and Liabilities - Total assets as of January 31, 2024, were 5,969.1 million, slightly up from 5,960.8millionatOctober31,2023[12].−Long−termdebtincreasedto5,960.8 million at October 31, 2023[12]. - Long-term debt increased to 2,185.3 million from 2,121.4million,reflectingariseof3.02,121.4 million, reflecting a rise of 3.0%[12]. - The total shareholders' equity as of January 31, 2024, was 2,036.4 million, up from 1,882.2millionayearearlier,indicatinggrowthinequity[14].−AsofJanuary31,2024,long−termdebtwas1,882.2 million a year earlier, indicating growth in equity[14]. - As of January 31, 2024, long-term debt was 2,185.3 million, up from 2,121.4millionasofOctober31,2023[45].CashFlow−Cashflowsfromoperatingactivitiesprovided2,121.4 million as of October 31, 2023[45]. Cash Flow - Cash flows from operating activities provided 4.5 million, down from 32.9millionyear−over−year,reflectingasignificantdeclineincashgeneration[13].−Totalcashandcashequivalentsattheendoftheperiodwere32.9 million year-over-year, reflecting a significant decline in cash generation[13]. - Total cash and cash equivalents at the end of the period were 179.3 million, compared to 161.0millionattheendofJanuary31,2023[13].−Netcashusedininvestingactivitieswas161.0 million at the end of January 31, 2023[13]. - Net cash used in investing activities was 53.6 million, a decrease from 269.1millioninthesamequarterlastyear,indicatingreducedinvestmentoutflows[13].−Thecompanypaiddividendsof269.1 million in the same quarter last year, indicating reduced investment outflows[13]. - The company paid dividends of 29.7 million to shareholders, reflecting a slight increase from 28.9millioninthepreviousyear[14].SegmentPerformance−OperatingprofitfortheGlobalIndustrialPackagingsegmentincreasedto28.9 million in the previous year[14]. Segment Performance - Operating profit for the Global Industrial Packaging segment increased to 50.9 million in Q1 2024 from 45.9 million in Q1 2023, while the Paper Packaging & Services segment saw a significant decline from 109.1 million to 16.8million[88].−TheGlobalIndustrialPackagingsegmentgeneratednetsalesof16.8 million[88]. - The Global Industrial Packaging segment generated net sales of 686.6 million in Q1 2024, compared to 705.8millioninQ12023,reflectingadecreaseof2.5705.8 million in Q1 2023, reflecting a decrease of 2.5%[87]. - The Paper Packaging & Services segment's net sales decreased to 514.6 million in Q1 2024 from 560.2millioninQ12023,adeclineof8.1560.2 million in Q1 2023, a decline of 8.1%[87]. - Net sales in the Land Management segment were 4.6 million for Q1 2024, down from 5.0millioninQ12023,whilegrossprofitdecreasedto5.0 million in Q1 2023, while gross profit decreased to 1.9 million from 2.1million[123].Acquisitions−TheCompanyacquireda512.1 million[123]. Acquisitions - The Company acquired a 51% ownership interest in ColePak for a total purchase price of 74.6 million, with a fair value of the remaining noncontrolling interest at 72.1million[22].−TheacquisitionofCenturionContainerLLCwascompletedfor72.1 million[22]. - The acquisition of Centurion Container LLC was completed for 144.5 million, increasing the Company's ownership from approximately 10% to 80%, with a fair value of the remaining noncontrolling interest at 40.9million[26].−ThetotalpurchasepricefortheLeeContainerCorporationacquisitionwas40.9 million[26]. - The total purchase price for the Lee Container Corporation acquisition was 303.0 million, with identifiable net assets recognized at 227.1millionandgoodwillof227.1 million and goodwill of 75.9 million[33]. - Goodwill recognized from the ColePak acquisition was 60.1million,attributedtoexpectedsynergiesandexpandedmarketpresence[23].−TheCompanyrecognizedgoodwillof60.1 million, attributed to expected synergies and expanded market presence[23]. - The Company recognized goodwill of 95.4 million from the Centurion acquisition, reflecting enhanced business network and market presence[29]. Restructuring and Expenses - Restructuring charges for the three months ended January 31, 2024, totaled 5.7million,anincreasefrom5.7 million, an increase from 2.4 million in the same period of 2023[43]. - SG&A expenses increased to 145.8millioninQ12024,up145.8 million in Q1 2024, up 6.4 million (4.6%) from 139.4millioninQ12023,representing12.1139.4 million in Q1 2023, representing 12.1% of net sales compared to 11.0%[111]. - The company recorded a depreciation, depletion, and amortization expense of 60.4 million, an increase of 9.6% from 55.1millionintheprioryear[13].MarketConditionsandRisks−Thecompanycontinuestofacerisksrelatedtoeconomicconditions,supplychaindisruptions,andcompetitivepressuresthatmayimpactfutureperformance[92].−Thecompanyanticipatesslightincreasesinpricesforoldcorrugatedcontainersandaslightdecreaseinsteelprices,withstablepricesforresinandotherdirectmaterialsexpectedthroughouttheyear[113].TaxandOtherFinancialMatters−Thecompanyreportedasignificantdecreaseinincometaxexpense,withabenefitof55.1 million in the prior year[13]. Market Conditions and Risks - The company continues to face risks related to economic conditions, supply chain disruptions, and competitive pressures that may impact future performance[92]. - The company anticipates slight increases in prices for old corrugated containers and a slight decrease in steel prices, with stable prices for resin and other direct materials expected throughout the year[113]. Tax and Other Financial Matters - The company reported a significant decrease in income tax expense, with a benefit of (38.2) million for the three months ended January 31, 2024, compared to an expense of 37.7millionin2023,resultinginanetdecreaseof37.7 million in 2023, resulting in a net decrease of 75.9 million[74]. - The estimated net decrease in unrecognized tax benefits for the next 12 months ranges from zero to $5.7 million[133].