Greif(GEF_B) - 2024 Q1 - Quarterly Results

Financial Performance - Net income for Q1 2024 was $67.2 million or$1.17 per diluted Class A share, a decrease from $89.9 million or$1.54 per diluted Class A share in Q1 2023[7] - Adjusted EBITDA decreased by $36.5 million to$128.0 million compared to $164.5 million in the prior year[7] - Net sales for the three months ended January 31, 2024, were$1,205.8 million, a decrease of 5.1% compared to $1,271.0 million in the same period of 2023[26] - Gross profit for the same period was$221.6 million, down 11.9% from $251.6 million year-over-year[26] - Operating profit decreased significantly to$68.9 million, a decline of 56.0% from $156.4 million in the prior year[26] - Net income attributable to Greif, Inc. was$67.2 million, down 25.5% from $89.9 million in the same quarter of 2023[26] - Basic earnings per share for Class A common stock decreased to$1.17, down 24.5% from $1.55 in the previous year[26] - Total adjusted EBITDA for the three months ended January 31, 2024, was$128.0 million, a decrease of 22.2% compared to $164.5 million in the same period of 2023[34] Debt and Cash Flow - Total debt increased by$62.5 million to $2,291.8 million, with net debt rising by$44.2 million to $2,112.5 million, resulting in a leverage ratio increase to 2.53x from 2.20x sequentially[7] - Cash and cash equivalents at the end of the period were$179.3 million, a slight decrease from $180.9 million at the beginning of the period[30] - The company reported a net cash used in operating activities of$4.5 million, a significant decline from $32.9 million in the same quarter of the previous year[30] - Net cash provided by operating activities was$4.5 million in Q1 2024, a decrease from $32.9 million in Q1 2023, resulting in a free cash flow of$(51.1) million compared to $(16.4) million in the prior year[38] - Projected adjusted free cash flow for fiscal 2024 is estimated at$200.0 million, with net cash provided by operating activities expected to be $346.8 million[45] Segment Performance - Net sales in the Global Industrial Packaging segment decreased by$19.2 million to 686.6 million, while Paper Packaging & Services net sales decreased by 45.6 million to $514.6 million[11][13] - Global Industrial Packaging segment reported an operating profit of$50.9 million for Q1 2024, up from $45.9 million in Q1 2023, with an EBITDA of$67.3 million compared to 64.2 million[36] - Paper Packaging & Services segment's operating profit decreased significantly to 16.8 million in Q1 2024 from $109.1 million in Q1 2023, with EBITDA dropping to$51.7 million from 142.5 million[36] Customer Experience and Initiatives - Customer satisfaction index (CSI) score was 93.3, with the Paper Packaging & Services segment at 92.7 and Global Industrial Packaging at 94.0[5] - The company announced a partnership with Ionkraft to explore innovative packaging technology aimed at the Agrochemical industry[6] - A new customer digital portal was launched to enhance customer experience and streamline order processes, currently available for select U.S. facilities[6] Dividends and Taxation - Quarterly cash dividends declared were 0.52 per share for Class A Common Stock and $0.78 per share for Class B Common Stock, payable on April 1, 2024[16] - The company recorded a negative income tax rate of 107.3$48.1 million related to deferred tax assets[15] Costs and Charges - The company incurred acquisition and integration related costs of $2.6 million, down from$7.5 million in the prior year[26] - Restructuring charges for Q1 2024 were $5.7 million, compared to$2.4 million in Q1 2023[39]