Greif(GEF_B) - 2024 Q2 - Quarterly Report

Financial Performance - Net sales for the three months ended April 30, 2024, were $1,371.0 million, a 4.7$1,308.9 million in the same period of 2023[9]. - Gross profit decreased to $270.1 million for the three months ended April 30, 2024, down 13.4$311.8 million in 2023[9]. - Operating profit for the six months ended April 30, 2024, was $167.0 million, a decline of 50.5$337.5 million in the same period of 2023[9]. - Net income attributable to Greif, Inc. for the three months ended April 30, 2024, was $44.4 million, down 60$111.2 million in 2023[9]. - Comprehensive income for the three months ended April 30, 2024, was $50.8 million, down from$107.2 million in 2023[10]. - Net income for the six months ended April 30, 2024, was $126.3 million, a decrease of 39.5$209.1 million in the same period of 2023[14]. - Total net sales for the first six months of 2024 were $2,576.8 million, a slight decrease from$2,579.9 million in the same period of 2023[161]. - Adjusted EBITDA fell to $297.9 million for the first six months of 2024, compared to$393.1 million in 2023, a decrease of 24.2%[164]. Assets and Liabilities - Total assets increased to $6,828.8 million as of April 30, 2024, compared to$5,960.8 million as of October 31, 2023[12]. - Long-term debt rose to $2,782.9 million as of April 30, 2024, up from$2,121.4 million as of October 31, 2023[13]. - Cash and cash equivalents increased to $196.0 million as of April 30, 2024, compared to$180.9 million as of October 31, 2023[12]. - Total shareholders' equity as of April 30, 2024, was $2,047.4 million, an increase from$2,036.4 million at the beginning of the period[15]. - The company’s accumulated other comprehensive loss increased to $(328.1) million as of April 30, 2024, from$(316.5) million as of October 31, 2023[95]. Dividends and Shareholder Returns - The company declared cash dividends of $0.52 per share for Class A common stock and$0.78 per share for Class B common stock, compared to $0.50 and$0.75 respectively in the previous year[9]. - The company paid dividends of $59.7 million to Greif, Inc. shareholders during the period, compared to$57.9 million in the previous year[14]. - Greif, Inc. paid dividends of $29.0 million to shareholders during the three months ended April 30, 2023, with dividends of$0.50 and $0.75 per Class A and Class B share, respectively[16]. Acquisitions and Integration - The company completed the acquisition of Ipackchem Group SAS on March 26, 2024, for a total purchase price of$582.1 million, with transaction costs amounting to $8.9 million[24]. - Ipackchem contributed net sales of$22.6 million for the three months ended April 30, 2024, following its acquisition on March 26, 2024[29]. - The company acquired a 51% ownership interest in ColePak for a total purchase price of $74.6 million, with recognized goodwill of$60.1 million attributed to expected synergies and expanded market presence[33]. - The company completed the acquisition of Centurion for a total purchase price of $144.5 million, recognizing goodwill of$95.4 million related to expanded market presence and enhanced business network[37]. - The company completed the Ipackchem Acquisition on March 26, 2024, enhancing its Global Industrial Packaging segment with high-performance plastic packaging products[98]. Segment Performance - For the three months ended April 30, 2024, the Global Industrial Packaging segment generated net sales of 804.8 million, while Paper Packaging & Services generated 560.8 million[99]. - Operating profit for the Global Industrial Packaging segment was $83.4 million for the three months ended April 30, 2024, compared to$111.3 million for the same period in 2023, reflecting a decrease of approximately 25.1%[100]. - The Paper Packaging & Services segment reported an operating profit of $12.6 million for the three months ended April 30, 2024, a significant decrease from$67.6 million in the same period of 2023, indicating a decline of approximately 81.4%[100]. - Global Industrial Packaging net sales increased to $1,491.4 million in the first half of 2024, up 2.6$1,454.0 million in 2023[165]. - Gross profit for Global Industrial Packaging rose to $316.8 million, a 4.5$303.2 million in 2023, with a gross profit margin of 21.2%[166]. Cash Flow and Investments - Cash provided by operating activities decreased to $92.0 million, down 62.2$243.7 million in the prior year[14]. - Net cash used in investing activities increased to $662.6 million, compared to$451.0 million in the same period last year, reflecting higher business acquisitions[14]. - The company invested $96.6 million in capital expenditures during the first half of 2024, compared to$91.1 million in 2023[179]. Debt and Financing - Proceeds from the issuance of long-term debt amounted to $1,571.6 million, an increase from$1,252.0 million in the previous year[14]. - The company entered into a $300.0 million senior secured credit agreement on May 17, 2023, with CoBank, which includes a secured term loan facility with quarterly principal installments starting July 31, 2023, and maturing on May 17, 2028[61]. - As of April 30, 2024, the outstanding borrowings under the 2022 and 2023 Credit Agreements totaled$2,536.3 million, with a current portion of $95.8 million and a long-term portion of$2,440.5 million[63]. Market Outlook and Strategic Focus - The company anticipates stable prices for steel and resin through the rest of the year, with potential slight increases in certain regions[135]. - Customer demand patterns are expected to show slight sequential improvement, although some markets may experience uncertainty in business volumes[134]. - The company is focusing on strategic investments and acquisitions to enhance operational efficiency and profitability[132].