Greif, Inc. (NYSE: GEF, GEF.B), a global leader in industrial
packaging products and services, today announced fiscal first
quarter 2025 results.
Fiscal First
Quarter 2025 Financial
Highlights: (all results compared to the
first quarter of
2024 unless otherwise noted)
- Net income decreased 87.2% to $8.6
million or $0.15 per diluted Class A share compared to net income
of $67.2 million or $1.17 per diluted Class A share, primarily due
to a non-recurring income tax benefit of $48.1 million in the
prior year quarter. Net income, excluding the impact of
adjustments(1), decreased 69.1% to $22.5 million or $0.39 per
diluted Class A share compared to net income, excluding the impact
of adjustments, of $72.7 million or $1.27 per diluted Class A
share.
- Adjusted EBITDA(2) increased 5.9%
to $145.1 million compared to Adjusted EBITDA of $137.0
million.
- Net cash provided by operating
activities decreased by $35.3 million to a use of $30.8
million. Adjusted free cash flow(3) decreased by $13.7 million
to a use of $61.9 million.
- Total debt of $2,840.2 million
increased by $548.4 million, primarily as a result of the
acquisition of Ipackchem. Net debt(4) increased by
$526.6 million to $2,639.1 million. Our leverage ratio(5)
increased to 3.63x from 2.46x in the prior year quarter.
Strategic Actions and
Announcements
- Intend to divest our approximately 176,000 acres of timberland
in the Southeastern United States. Proceeds will be applied towards
debt reduction.
- Announced closure of A1 uncoated recycled paperboard machine in
Austell, GA as well as the containerboard and uncoated recycled
paperboard mill in Fitchburg, MA.
- Progress on announced cost optimization project proceeding on
target, with $13.0 million of annual run-rate savings achieved
through the end of first quarter 2025.
Commentary from CEO Ole
Rosgaard
“Greif is actively managing a historical period
of industrial activity contraction while simultaneously
transforming our internal processes and our portfolio mix for
optimal alignment to long-term profitable earnings growth.” said
Ole Rosgaard, Chief Executive Officer of Greif, “This quarter
highlights the resilience of our new business model amid multiple
headwinds and demonstrates our willingness to invest in the
long-term future of Greif while managing the present. We’re excited
for what the future holds and for accelerating our growth in both
the near and long-term. Our announcement to seek the sale of our
Soterra land management holdings demonstrates our commitment to
constantly assessing our business portfolio for maximum value
creation and taking decisive action to pursue long-term sustainable
earnings growth.”
_____________________
|
(1) |
Adjustments that are excluded from net income before adjustments
and from earnings per diluted Class A share before adjustments are
acquisition and integration related costs, restructuring charges,
non-cash asset impairment charges, (gain) loss on disposal of
properties, plants and equipment, net, (gain) loss on disposal of
businesses, net, and other costs. |
| (2) |
Adjusted EBITDA is defined as net income, plus interest expense,
net, plus income tax (benefit) expense, plus other (income)
expense, net, plus depreciation, depletion and amortization
expense, plus acquisition and integration related costs, plus
restructuring charges, plus non-cash asset impairment charges, plus
(gain) loss on disposal of properties, plants and equipment, net,
plus (gain) loss on disposal of businesses, net, plus other
costs. |
| (3) |
Adjusted free cash flow is defined as net cash provided by
operating activities, less cash paid for purchases of properties,
plants and equipment, plus cash paid for acquisition and
integration related costs, plus cash paid for integration related
Enterprise Resource Planning (ERP) systems and equipment, plus cash
paid for fiscal year-end change costs. |
| (4) |
Net debt is defined as total debt less cash and cash
equivalents. |
| (5) |
Leverage ratio for the periods indicated is defined as adjusted net
debt divided by trailing twelve month Adjusted EBITDA, each as
calculated under the terms of the Company’s Second Amended and
Restated Credit Agreement dated as of March 1, 2022, filed as
Exhibit 10.1 to the Company’s Quarterly Report on Form 10-Q for the
fiscal quarter ended January 31, 2022 (the “2022 Credit
Agreement”). As calculated under the 2022 Credit Agreement,
adjusted net debt was $2,558.4 million and $1,989.9 million as of
January 31, 2025 and January 31, 2024, respectively, and trailing
twelve month Credit Agreement adjusted EBITDA was $705.7 million
and $807.4 million as of January 31, 2025 and January 31,
2024, respectively. |
| |
|
Note: A reconciliation of the differences
between all non-GAAP financial measures used in this release with
the most directly comparable GAAP financial measures is included in
the financial schedules that are a part of this release. These
non-GAAP financial measures are intended to supplement, and should
be read together with, our financial results. They should not be
considered an alternative or substitute for, and should not be
considered superior to, our reported financial results.
Accordingly, users of this financial information should not place
undue reliance on these non-GAAP financial measures.
Fiscal First
Quarter 2025 Segment
Results: (all results compared to the
first quarter of
2024 unless otherwise noted)
Net sales are impacted mainly by the volume of
products sold, selling prices and product mix, and the impact of
changes in foreign currencies against the U.S. Dollar. The table
below shows the percentage impact of each of these items on net
sales for our primary products for the fiscal first quarter of 2025
as compared to the prior year quarter for the business segments
with manufacturing operations. Net sales from completed acquisition
of Ipackchem Group SAS ("Ipackchem") products are not included in
the table below, but will be included in its respective segment
starting in the fiscal third quarter 2025.
| |
|
|
|
|
|
|
|
|
| Net Sales
Impact |
Customized PolymerSolutions |
|
Durable MetalSolutions |
|
Sustainable FiberSolutions |
|
IntegratedSolutions |
|
Currency Translation |
(2.6 |
)% |
|
(4.6 |
)% |
|
(0.1 |
)% |
|
(1.7 |
)% |
| Volume |
2.7 |
% |
|
(2.8 |
)% |
|
1.4 |
% |
|
11.2 |
% |
| Selling Prices and
Product Mix |
3.7 |
% |
|
(0.3 |
)% |
|
4.9 |
% |
|
(9.6 |
)% |
|
Total Impact |
3.8 |
% |
|
(7.7 |
)% |
|
6.2 |
% |
|
(0.1 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
Customized Polymer
Solutions
Net sales increased by $67.1 million to $295.1
million primarily due to $58.5 million of contributions from
recent acquisitions.
Gross profit increased by $16.4 million to $60.6
million. The increase in gross profit was primarily due to the same
factors that impacted net sales, partially offset by higher raw
material, transportation and manufacturing costs.
Operating profit increased by $2.1 million to
$13.8 million primarily due to the same factors that impacted gross
profit, partially offset by higher SG&A expenses due to recent
acquisitions.
Adjusted EBITDA increased by $13.7 million to
$39.5 million primarily due to the same factors that impacted gross
profit.
Durable Metal Solutions
Net sales decreased by $28.3 million to $342.2
million primarily due to $16.9 million of negative foreign
currency translation impacts and $10.3 million attributable to
lower volumes.
Gross profit decreased by $2.7 million to $63.1
million. The decrease in gross profit was primarily due to the same
factors that impacted net sales, offset by lower raw material
costs.
Operating profit increased by $0.7 million to
$37.6 million primarily due to lower SG&A expenses, partially
offset by the same factors that impacted gross profit.
Adjusted EBITDA increased by $0.5 million to
$45.2 million primarily due to the same factors that impacted
operating profit.
Sustainable Fiber Solutions
Net sales increased by $32.6 million to $561.4
million primarily due to $25.8 million from higher published
containerboard and boxboard prices.
Gross profit increased by $15.1 million to
$103.4 million. The increase in gross profit was primarily due to
the same factors that impacted net sales, partially offset by
higher raw material costs.
Operating profit decreased by $4.6 million to
$3.6 million primarily due to higher SG&A expenses and higher
impairment charges related to plant closures, partially offset by
the same factors that impacted gross profit.
Adjusted EBITDA decreased by $1.5 million to
$51.5 million primarily due to higher SG&A expenses, partially
offset by the same factors that impacted gross profit, excluding
impacts from depreciation and amortization.
Integrated Solutions
Net sales decreased by $11.4 million to $67.1
million primarily due to an $11.3 million impact from the
divestiture of Delta Petroleum Company, Inc. (the “Delta
Divestiture”) during the third quarter of 2024.
Gross profit decreased by $4.9 million to $18.4
million. The decrease in gross profit was primarily due to the
Delta Divestiture.
Operating profit decreased by $7.2 million to
$4.9 million primarily due to the same factors that impacted gross
profit and lower gains on disposal of properties, plants and
equipment, net.
Adjusted EBITDA decreased by $4.6 million to
$8.9 million primarily due to the same factors that impacted gross
profit.
Tax Summary
During the first quarter, we recorded an income
tax rate of 35.8 percent and a tax rate excluding the impact of
adjustments of 30.3 percent. Note that the application of FIN 18
frequently causes fluctuations in our quarterly effective tax
rates. For fiscal 2025, we expect our tax rate and our tax rate
excluding adjustments to range between 27.0 to 32.0 percent.
Dividend Summary
On February 24, 2025, the Board of Directors
declared quarterly cash dividends of $0.54 per share of Class A
Common Stock and $0.81 per share of Class B Common Stock. Dividends
are payable on April 1, 2025, to stockholders of record at the
close of business on March 17, 2025.
Company Outlook
Our markets have now experienced a multi-year
period of industrial contraction, and we have not identified any
compelling demand inflection on the horizon, despite slightly
improved year-over-year volumes. While we believe we are well
positioned for an eventual recovery of the industrial economy, at
this time we believe it is appropriate to provide only low-end
guidance based on the continuation of demand trends reflected in
the past year, current price/cost factors in Sustainable Fiber
Solutions, and other identifiable discrete items.
|
|
|
| (in
millions) |
Fiscal 2025 Low-End
Guidance Estimate Reported at Q1 |
|
Adjusted EBITDA |
$710 |
| Adjusted free cash flow |
$245 |
|
|
|
Note: Fiscal 2025 net income guidance, the most
directly comparable GAAP financial measure to Adjusted EBITDA, is
not provided in this release due to the potential for one or more
of the following, the timing and magnitude of which we are unable
to reliably forecast: gains or losses on the disposal of businesses
or properties, plants and equipment, net; non-cash asset impairment
charges due to unanticipated changes in the business;
restructuring-related activities; acquisition and integration
related costs; and ongoing initiatives under our Build to Last
strategy. No reconciliation of the 2025 low-end guidance estimate
of Adjusted EBITDA, a non-GAAP financial measure which excludes
restructuring charges, acquisition and integration related costs,
non-cash asset impairment charges, (gain) loss on the disposal of
properties, plants, equipment and businesses, net, and other costs,
is included in this release because, due to the high variability
and difficulty in making accurate forecasts and projections of some
of the excluded information, together with some of the excluded
information not being ascertainable or accessible, we are unable to
quantify certain amounts that would be required to be included in
net income, the most directly comparable GAAP financial measure,
without unreasonable efforts. A reconciliation of the 2025 low-end
guidance estimate of Adjusted free cash flow to fiscal 2025
forecasted net cash provided by operating activities, the most
directly comparable GAAP financial measure, is included in this
release.
Conference Call
The Company will host a conference call to
discuss first quarter 2025 results on February 27, 2025, at 8:30
a.m. Eastern Time (ET). Participants may access the call using the
following online registration link:
https://register.vevent.com/register/BI2fb5239ea557490fb8756f191727bda0.
Registrants will receive a confirmation email containing dial in
details and a unique conference call code for entry. Phone lines
will open at 8:00 a.m. ET on February 27, 2025. A digital
replay of the conference call will be available two hours following
the call on the Company’s web site at
http://investor.greif.com.
Investor Relations contact
information
Bill D’Onofrio, Vice President, Corporate
Development & Investor Relations, 614-499-7233.
Bill.Donofrio@greif.com
About Greif
Greif is a global leader in industrial packaging
products and services and is pursuing its vision: to be the best
customer service company in the world. The Company produces steel,
plastic and fibre drums, intermediate bulk containers,
reconditioned containers, jerrycans and other small plastics,
containerboard, uncoated recycled paperboard, coated recycled
paperboard, tubes and cores and a diverse mix of specialty
products. The Company also manufactures packaging accessories and
provides other services for a wide range of industries. In
addition, Greif manages timber properties in the southeastern
United States. The Company is strategically positioned in over 35
countries to serve global as well as regional customers. Additional
information is on the Company’s website at www.greif.com.
Forward-Looking Statements
This release contains forward-looking statements
within the meaning of the Private Securities Litigation Reform Act
of 1995. The words “may,” “will,” “expect,” “intend,” “estimate,”
“anticipate,” “aspiration,” “objective,” “project,” “believe,”
“continue,” “on track” or “target” or the negative thereof and
similar expressions, among others, identify forward-looking
statements. All forward-looking statements are based on
assumptions, expectations and other information currently available
to management. Although the Company believes that the expectations
reflected in forward-looking statements have a reasonable basis,
the Company can give no assurance that these expectations will
prove to be correct. Such forward-looking statements are subject to
certain risks and uncertainties that could cause the Company’s
actual results to differ materially from those forecasted,
projected or anticipated, whether expressed or implied.
Such risks and uncertainties that might cause a
difference include, but are not limited to, the following: (i)
historically, our business has been sensitive to changes in general
economic or business conditions, (ii) our global operations subject
us to political risks, instability and currency exchange that could
adversely affect our results of operations, (iii) the current and
future challenging global economy and disruption and volatility of
the financial and credit markets may adversely affect our business,
(iv) the continuing consolidation of our customer base and
suppliers may intensify pricing pressure, (v) we operate in highly
competitive industries, (vi) our business is sensitive to changes
in industry demands and customer preferences, (vii) raw material
shortages, price fluctuations, global supply chain disruptions and
increased inflation may adversely impact our results of operations,
(viii) energy and transportation price fluctuations and shortages
may adversely impact our manufacturing operations and costs, (ix)
we may encounter difficulties or liabilities arising from
acquisitions or divestitures, (x) we may incur additional
rationalization costs and there is no guarantee that our efforts to
reduce costs will be successful, (xi) several operations are
conducted by joint ventures that we cannot operate solely for our
benefit, (xii) certain of the agreements that govern our joint
ventures provide our partners with put or call options, (xiii) our
ability to attract, develop and retain talented and qualified
employees, managers and executives is critical to our success,
(xiv) our business may be adversely impacted by work stoppages and
other labor relations matters, (xv) we may be subject to losses
that might not be covered in whole or in part by existing insurance
reserves or insurance coverage and general insurance premium and
deductible increases, (xvi) our business depends on the
uninterrupted operations of our facilities, systems and business
functions, including our information technology and other business
systems, (xvii) a cyber-attack, security breach of customer,
employee, supplier or Company information and data privacy risks
and costs of compliance with new regulations may have a material
adverse effect on our business, financial condition, results of
operations and cash flows, (xviii) we could be subject to changes
in our tax rates, the adoption of new U.S. or foreign tax
legislation or exposure to additional tax liabilities, (xix) we
have a significant amount of goodwill and long-lived assets which,
if impaired in the future, would adversely impact our results of
operations, (xx) changing climate, global climate change
regulations and greenhouse gas effects may adversely affect our
operations and financial performance, (xxi) we may be unable to
achieve our greenhouse gas emission reduction target by 2030,
(xxii) legislation/regulation related to environmental and health
and safety matters could negatively impact our operations and
financial performance, (xxiii) product liability claims and other
legal proceedings could adversely affect our operations and
financial performance, and (xxiv) we may incur fines or penalties,
damage to our reputation or other adverse consequences if our
employees, agents or business partners violate, or are alleged to
have violated, anti-bribery, competition or other laws.
The risks described above are not all-inclusive,
and given these and other possible risks and uncertainties,
investors should not place undue reliance on forward-looking
statements as a prediction of actual results. For a detailed
discussion of the most significant risks and uncertainties that
could cause our actual results to differ materially from those
forecasted, projected or anticipated, see “Risk Factors” in Part I,
Item 1A of our most recently filed Form 10-K and our other filings
with the Securities and Exchange Commission.
All forward-looking statements made in this news
release are expressly qualified in their entirety by reference to
such risk factors. Except to the limited extent required by
applicable law, we undertake no obligation to update or revise any
forward-looking statements, whether as a result of new information,
future events or otherwise.
| |
|
|
GREIF, INC. AND SUBSIDIARY
COMPANIESCONDENSED CONSOLIDATED STATEMENTS OF
INCOMEUNAUDITED |
| |
|
| |
Three months endedJanuary 31, |
|
(in millions, except per share amounts) |
|
2025 |
|
|
|
2024 |
|
|
Net sales |
$ |
1,265.8 |
|
|
$ |
1,205.8 |
|
| Cost of products sold |
|
1,020.3 |
|
|
|
984.2 |
|
|
Gross profit |
|
245.5 |
|
|
|
221.6 |
|
| Selling, general and
administrative expenses |
|
167.7 |
|
|
|
145.8 |
|
| Acquisition and integration
related costs |
|
2.2 |
|
|
|
2.6 |
|
| Restructuring charges |
|
2.7 |
|
|
|
5.7 |
|
| Non-cash asset impairment
charges |
|
13.7 |
|
|
|
1.3 |
|
| (Gain) loss on disposal of
properties, plants and equipment, net |
|
(1.6 |
) |
|
|
(2.7 |
) |
| (Gain) loss on disposal of
businesses, net |
|
0.9 |
|
|
|
— |
|
|
Operating profit |
|
59.9 |
|
|
|
68.9 |
|
| Interest expense, net |
|
37.7 |
|
|
|
24.2 |
|
| Other (income) expense,
net |
|
0.4 |
|
|
|
9.1 |
|
|
Income before income tax (benefit) expense and equity earnings of
unconsolidated affiliates, net |
|
21.8 |
|
|
|
35.6 |
|
| Income tax (benefit)
expense |
|
7.8 |
|
|
|
(38.2 |
) |
| Equity earnings of
unconsolidated affiliates, net of tax |
|
(0.4 |
) |
|
|
(0.5 |
) |
|
Net income |
|
14.4 |
|
|
|
74.3 |
|
| Net income attributable to
noncontrolling interests |
|
(5.8 |
) |
|
|
(7.1 |
) |
|
Net income attributable to Greif, Inc. |
$ |
8.6 |
|
|
$ |
67.2 |
|
| Basic earnings per
share attributable to Greif, Inc. common
shareholders: |
|
|
|
| Class A common stock |
$ |
0.15 |
|
|
$ |
1.17 |
|
| Class B common stock |
$ |
0.22 |
|
|
$ |
1.75 |
|
| Diluted earnings per
share attributable to Greif, Inc. common
shareholders: |
|
|
|
| Class A common stock |
$ |
0.15 |
|
|
$ |
1.17 |
|
| Class B common stock |
$ |
0.22 |
|
|
$ |
1.75 |
|
| Shares used to
calculate basic earnings per share attributable to Greif, Inc.
common shareholders: |
|
|
|
| Class A common stock |
|
25.9 |
|
|
|
25.5 |
|
| Class B common stock |
|
21.3 |
|
|
|
21.3 |
|
| Shares used to
calculate diluted earnings per share attributable to Greif, Inc.
common shareholders: |
|
|
|
| Class A common stock |
|
26.0 |
|
|
|
25.6 |
|
| Class B common stock |
|
21.3 |
|
|
|
21.3 |
|
| |
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
| |
|
|
|
|
GREIF, INC. AND SUBSIDIARY
COMPANIESCONDENSED CONSOLIDATED BALANCE
SHEETSUNAUDITED |
| |
|
|
|
| (in
millions) |
January 31,2025 |
|
October 31,2024 |
|
ASSETS |
|
|
|
| Current
assets |
|
|
|
|
Cash and cash equivalents |
$ |
201.1 |
|
$ |
197.7 |
|
Trade accounts receivable |
|
706.0 |
|
|
746.9 |
|
Inventories |
|
416.7 |
|
|
399.5 |
|
Other current assets |
|
273.3 |
|
|
205.3 |
| |
|
1,597.1 |
|
|
1,549.4 |
| Long-term
assets |
|
|
|
|
Goodwill |
|
1,941.6 |
|
|
1,953.7 |
|
Intangible assets |
|
908.3 |
|
|
937.1 |
|
Operating lease right-of-use assets |
|
269.7 |
|
|
284.5 |
|
Other long-term assets |
|
251.7 |
|
|
270.8 |
| |
|
3,371.3 |
|
|
3,446.1 |
| Properties, plants and
equipment |
|
1,617.3 |
|
|
1,652.1 |
| |
$ |
6,585.7 |
|
$ |
6,647.6 |
| LIABILITIES AND
EQUITY |
|
|
|
| Current
liabilities |
|
|
|
|
Accounts payable |
$ |
473.3 |
|
$ |
521.9 |
|
Short-term borrowings |
|
322.2 |
|
|
18.6 |
|
Current portion of long-term debt |
|
95.8 |
|
|
95.8 |
|
Current portion of operating lease liabilities |
|
55.4 |
|
|
56.5 |
|
Other current liabilities |
|
271.1 |
|
|
321.6 |
| |
|
1,217.8 |
|
|
1,014.4 |
| Long-term
liabilities |
|
|
|
|
Long-term debt |
|
2,422.2 |
|
|
2,626.2 |
|
Operating lease liabilities |
|
216.3 |
|
|
230.2 |
|
Other long-term liabilities |
|
519.5 |
|
|
529.4 |
| |
|
3,158.0 |
|
|
3,385.8 |
| |
|
|
|
| Redeemable noncontrolling
interests |
|
131.0 |
|
|
129.9 |
| Equity |
|
|
|
|
Total Greif, Inc. equity |
|
2,040.4 |
|
|
2,082.4 |
|
Noncontrolling interests |
|
38.5 |
|
|
35.1 |
|
Total equity |
|
2,078.9 |
|
|
2,117.5 |
| |
$ |
6,585.7 |
|
$ |
6,647.6 |
| |
|
|
|
|
|
| |
|
|
|
|
|
| |
|
|
GREIF, INC. AND SUBSIDIARY
COMPANIESCONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOWSUNAUDITED |
| |
|
| |
Three months endedJanuary 31, |
|
(in millions) |
|
2025 |
|
|
|
2024 |
|
|
CASH FLOWS FROM OPERATING ACTIVITIES: |
|
|
|
| Net income |
$ |
14.4 |
|
|
$ |
74.3 |
|
| Depreciation, depletion and
amortization |
|
66.6 |
|
|
|
60.4 |
|
| Asset impairments |
|
13.7 |
|
|
|
1.3 |
|
| Deferred income tax expense
(benefit) |
|
(0.6 |
) |
|
|
(49.2 |
) |
| Other non-cash adjustments to net
income |
|
2.0 |
|
|
|
17.6 |
|
| Operating working capital
changes |
|
(23.1 |
) |
|
|
(27.6 |
) |
| Increase (decrease) in cash from
changes in other assets and liabilities |
|
(103.8 |
) |
|
|
(72.3 |
) |
|
Net cash provided by (used in) operating activities |
|
(30.8 |
) |
|
|
4.5 |
|
| CASH FLOWS FROM INVESTING
ACTIVITIES: |
|
|
|
| Acquisitions of companies, net of
cash acquired |
|
(4.6 |
) |
|
|
— |
|
| Purchases of properties, plants
and equipment |
|
(35.7 |
) |
|
|
(55.6 |
) |
| Proceeds from the sale of
properties, plant and equipment and businesses, net of impacts from
the purchase of acquisitions |
|
1.6 |
|
|
|
5.0 |
|
| Payments for deferred purchase
price of acquisitions |
|
(1.2 |
) |
|
|
(1.2 |
) |
| Proceeds from hedging
derivatives |
|
22.5 |
|
|
|
— |
|
| Other |
|
(1.6 |
) |
|
|
(1.8 |
) |
|
Net cash provided by (used in) investing activities |
|
(19.0 |
) |
|
|
(53.6 |
) |
| CASH FLOWS FROM FINANCING
ACTIVITIES: |
|
|
|
| Proceeds (payments) on long-term
debt, net |
|
103.8 |
|
|
|
74.1 |
|
| Dividends paid to Greif, Inc.
shareholders |
|
(31.0 |
) |
|
|
(29.7 |
) |
| Tax withholding payments for
stock-based awards |
|
(6.4 |
) |
|
|
(6.8 |
) |
| Other |
|
(3.9 |
) |
|
|
(1.5 |
) |
|
Net cash provided by (used in) financing activities |
|
62.5 |
|
|
|
36.1 |
|
| Effects of exchange rates on
cash |
|
(9.3 |
) |
|
|
11.4 |
|
| Net increase (decrease) in cash
and cash equivalents |
|
3.4 |
|
|
|
(1.6 |
) |
| Cash and cash equivalents,
beginning of period |
|
197.7 |
|
|
|
180.9 |
|
| Cash and cash equivalents, end of
period |
$ |
201.1 |
|
|
$ |
179.3 |
|
| |
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
| |
|
|
GREIF, INC. AND SUBSIDIARY
COMPANIESFINANCIAL HIGHLIGHTS BY
SEGMENTUNAUDITED |
| |
|
| |
Three months endedJanuary 31, |
|
(in millions) |
|
2025 |
|
|
2024 |
|
Net sales: |
|
|
|
|
Customized Polymer Solutions |
$ |
295.1 |
|
$ |
228.0 |
|
Durable Metal Solutions |
|
342.2 |
|
|
370.5 |
|
Sustainable Fiber Solutions |
|
561.4 |
|
|
528.8 |
|
Integrated Solutions |
|
67.1 |
|
|
78.5 |
|
Total net sales |
$ |
1,265.8 |
|
$ |
1,205.8 |
| Gross
profit: |
|
|
|
|
Customized Polymer Solutions |
$ |
60.6 |
|
$ |
44.2 |
|
Durable Metal Solutions |
|
63.1 |
|
|
65.8 |
|
Sustainable Fiber Solutions |
|
103.4 |
|
|
88.3 |
|
Integrated Solutions |
|
18.4 |
|
|
23.3 |
|
Total gross profit |
$ |
245.5 |
|
$ |
221.6 |
| Operating
profit: |
|
|
|
|
Customized Polymer Solutions |
$ |
13.8 |
|
$ |
11.7 |
|
Durable Metal Solutions |
|
37.6 |
|
|
36.9 |
|
Sustainable Fiber Solutions |
|
3.6 |
|
|
8.2 |
|
Integrated Solutions |
|
4.9 |
|
|
12.1 |
|
Total operating profit |
$ |
59.9 |
|
$ |
68.9 |
| Adjusted
EBITDA(6): |
|
|
|
|
Customized Polymer Solutions |
$ |
39.5 |
|
$ |
25.8 |
|
Durable Metal Solutions |
|
45.2 |
|
|
44.7 |
|
Sustainable Fiber Solutions |
|
51.5 |
|
|
53.0 |
|
Integrated Solutions |
|
8.9 |
|
|
13.5 |
|
Total Adjusted EBITDA |
$ |
145.1 |
|
$ |
137.0 |
|
|
|
|
|
|
|
(6) Adjusted EBITDA is defined as net income,
plus interest expense, net, plus income tax (benefit) expense, plus
other (income) expense, net, plus depreciation, depletion and
amortization expense, plus acquisition and integration related
costs, plus restructuring charges, plus non-cash asset impairment
charges, plus (gain) loss on disposal of properties, plants and
equipment, net, plus (gain) loss on disposal of businesses, net,
plus other costs.
| |
|
|
GREIF, INC. AND SUBSIDIARY COMPANIESGAAP
TO NON-GAAP RECONCILIATIONCONSOLIDATED ADJUSTED
EBITDAUNAUDITED |
| |
|
| |
Three months endedJanuary 31, |
|
(in millions) |
|
2025 |
|
|
|
2024 |
|
|
Net income |
$ |
14.4 |
|
|
$ |
74.3 |
|
|
Plus: Interest expense, net |
|
37.7 |
|
|
|
24.2 |
|
|
Plus: Income tax (benefit) expense |
|
7.8 |
|
|
|
(38.2 |
) |
|
Plus: Other (income) expense, net |
|
0.4 |
|
|
|
9.1 |
|
|
Plus: Equity earnings of unconsolidated affiliates, net of tax |
|
(0.4 |
) |
|
|
(0.5 |
) |
| Operating profit |
$ |
59.9 |
|
|
$ |
68.9 |
|
|
Less: Equity earnings of unconsolidated affiliates, net of tax |
|
(0.4 |
) |
|
|
(0.5 |
) |
|
Plus: Depreciation, depletion and amortization expense |
|
66.6 |
|
|
|
60.4 |
|
|
Plus: Acquisition and integration related costs |
|
2.2 |
|
|
|
2.6 |
|
|
Plus: Restructuring charges |
|
2.7 |
|
|
|
5.7 |
|
|
Plus: Non-cash asset impairment charges |
|
13.7 |
|
|
|
1.3 |
|
|
Plus: (Gain) loss on disposal of properties, plants and equipment,
net |
|
(1.6 |
) |
|
|
(2.7 |
) |
|
Plus: (Gain) loss on disposal of businesses, net |
|
0.9 |
|
|
|
— |
|
|
Plus: Other costs* |
|
0.3 |
|
|
|
0.3 |
|
| Adjusted EBITDA |
$ |
145.1 |
|
|
$ |
137.0 |
|
| *includes fiscal
year-end change costs and share-based compensation impact of
disposals of businesses |
| |
| |
|
|
GREIF, INC. AND SUBSIDIARY COMPANIESGAAP
TO NON-GAAP RECONCILIATIONSEGMENT ADJUSTED
EBITDA(7)UNAUDITED |
| |
|
| |
Three months ended January 31, 2025 |
| (in
millions) |
Customized PolymerSolutions |
|
DurableMetalSolutions |
|
Sustainable FiberSolutions |
|
IntegratedSolutions |
|
Consolidated |
|
Operating profit |
|
13.8 |
|
|
37.6 |
|
|
|
3.6 |
|
|
|
4.9 |
|
|
59.9 |
|
|
Less: Equity earnings of unconsolidated affiliates, net of tax |
|
— |
|
|
— |
|
|
|
— |
|
|
|
(0.4 |
) |
|
(0.4 |
) |
|
Plus: Depreciation and amortization expense |
|
22.9 |
|
|
6.8 |
|
|
|
34.3 |
|
|
|
2.6 |
|
|
66.6 |
|
|
Plus: Acquisition and integration related costs |
|
2.2 |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
2.2 |
|
|
Plus: Restructuring charges |
|
0.5 |
|
|
0.5 |
|
|
|
1.6 |
|
|
|
0.1 |
|
|
2.7 |
|
|
Plus: Non-cash asset impairment charges |
|
— |
|
|
1.5 |
|
|
|
12.2 |
|
|
|
— |
|
|
13.7 |
|
|
Plus: (Gain) loss on disposal of properties, plants and equipment,
net |
|
— |
|
|
(1.2 |
) |
|
|
(0.4 |
) |
|
|
— |
|
|
(1.6 |
) |
|
Plus: (Gain) loss on disposal of businesses, net |
|
— |
|
|
— |
|
|
|
— |
|
|
|
0.9 |
|
|
0.9 |
|
|
Plus: Other costs* |
|
0.1 |
|
|
— |
|
|
|
0.2 |
|
|
|
— |
|
|
0.3 |
|
| Adjusted EBITDA |
$ |
39.5 |
|
$ |
45.2 |
|
|
$ |
51.5 |
|
|
$ |
8.9 |
|
|
145.1 |
|
| |
|
|
|
|
|
|
|
|
|
| |
Three months ended January 31, 2024 |
| (in
millions) |
Customized PolymerSolutions |
|
Durable MetalSolutions |
|
Sustainable FiberSolutions |
|
IntegratedSolutions |
|
Consolidated |
|
Operating profit |
|
11.7 |
|
|
36.9 |
|
|
|
8.2 |
|
|
|
12.1 |
|
|
68.9 |
|
|
Less: Equity earnings of unconsolidated affiliates, net of tax |
|
— |
|
|
— |
|
|
|
— |
|
|
|
(0.5 |
) |
|
(0.5 |
) |
|
Plus: Depreciation and amortization expense |
|
12.0 |
|
|
7.3 |
|
|
|
38.0 |
|
|
|
3.1 |
|
|
60.4 |
|
|
Plus: Acquisition and integration related costs |
|
1.8 |
|
|
— |
|
|
|
0.8 |
|
|
|
— |
|
|
2.6 |
|
|
Plus: Restructuring charges |
|
0.2 |
|
|
0.4 |
|
|
|
4.6 |
|
|
|
0.5 |
|
|
5.7 |
|
|
Plus: Non-cash asset impairment charges |
|
— |
|
|
— |
|
|
|
1.3 |
|
|
|
— |
|
|
1.3 |
|
|
Plus: (Gain) loss on disposal of properties, plants and equipment,
net |
|
— |
|
|
— |
|
|
|
— |
|
|
|
(2.7 |
) |
|
(2.7 |
) |
|
Plus: Other costs* |
|
0.1 |
|
|
0.1 |
|
|
|
0.1 |
|
|
|
— |
|
|
0.3 |
|
| Adjusted EBITDA |
$ |
25.8 |
|
$ |
44.7 |
|
|
$ |
53.0 |
|
|
$ |
13.5 |
|
|
137.0 |
|
| *includes fiscal
year-end change costs and share-based compensation impact of
disposals of businesses |
| |
(7) Adjusted EBITDA is defined as net income,
plus interest expense, net, plus income tax (benefit) expense, plus
other (income) expense, net, plus depreciation, depletion and
amortization expense, plus acquisition and integration related
costs, plus restructuring charges, plus non-cash asset impairment
charges, plus (gain) loss on disposal of properties, plants and
equipment, net, plus (gain) loss on disposal of businesses, net,
plus other costs. However, because the Company does not calculate
net income by segment, this table calculates Adjusted EBITDA by
segment with reference to operating profit by segment, which, as
demonstrated in the table of consolidated Adjusted EBITDA, is
another method to achieve the same result.
| |
|
|
GREIF, INC. AND SUBSIDIARY COMPANIESGAAP
TO NON-GAAP RECONCILIATIONADJUSTED FREE CASH
FLOW(8)UNAUDITED |
| |
|
| |
Three months endedJanuary 31, |
|
(in millions) |
|
2025 |
|
|
|
2024 |
|
|
Net cash provided by (used in) operating
activities |
$ |
(30.8 |
) |
|
$ |
4.5 |
|
|
Cash paid for purchases of properties, plants and equipment |
|
(35.7 |
) |
|
|
(55.6 |
) |
| Free cash
flow |
$ |
(66.5 |
) |
|
$ |
(51.1 |
) |
|
Cash paid for acquisition and integration related costs |
|
2.2 |
|
|
|
2.6 |
|
|
Cash paid for integration related ERP systems and equipment(9) |
|
2.3 |
|
|
|
0.3 |
|
|
Cash paid for fiscal year-end change costs |
|
0.1 |
|
|
|
— |
|
| Adjusted free cash
flow |
$ |
(61.9 |
) |
|
$ |
(48.2 |
) |
| |
|
|
|
|
|
|
|
(8) Adjusted free cash flow is defined as net
cash provided by operating activities, less cash paid for purchases
of properties, plants and equipment, plus cash paid for acquisition
and integration related costs, plus cash paid for integration
related ERP systems and equipment, plus cash paid for fiscal
year-end change costs.(9) Cash paid for integration related ERP
systems and equipment is defined as cash paid for ERP systems and
equipment required to bring the acquired facilities to Greif’s
standards.
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GREIF, INC. AND SUBSIDIARY COMPANIESGAAP
TO NON-GAAP RECONCILIATIONNET INCOME, CLASS A
EARNINGS PER SHARE AND TAX RATE BEFORE
ADJUSTMENTSUNAUDITED |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| (in
millions, except for per share amounts) |
Income before Income Tax (Benefit) Expense and Equity
Earnings of Unconsolidated Affiliates, net |
|
Income Tax (Benefit) Expense |
|
Equity Earnings |
|
Non-Controlling Interest |
|
Net Income (Loss) Attributable to Greif, Inc. |
|
Diluted Class A Earnings Per Share |
|
Tax Rate |
|
Three months ended January 31, 2025 |
$ |
21.8 |
|
|
$ |
7.8 |
|
|
$ |
(0.4 |
) |
|
$ |
5.8 |
|
$ |
8.6 |
|
|
$ |
0.15 |
|
|
35.8 |
% |
|
Acquisition and integration related costs |
|
2.2 |
|
|
|
0.5 |
|
|
|
— |
|
|
|
— |
|
|
1.7 |
|
|
|
0.03 |
|
|
|
|
Restructuring charges |
|
2.7 |
|
|
|
0.6 |
|
|
|
— |
|
|
|
— |
|
|
2.1 |
|
|
|
0.04 |
|
|
|
|
Non-cash asset impairment charges |
|
13.7 |
|
|
|
3.3 |
|
|
|
— |
|
|
|
— |
|
|
10.4 |
|
|
|
0.18 |
|
|
|
|
(Gain) loss on disposal of properties, plants and equipment,
net |
|
(1.6 |
) |
|
|
(0.4 |
) |
|
|
— |
|
|
|
— |
|
|
(1.2 |
) |
|
|
(0.02 |
) |
|
|
|
(Gain) loss on disposal of businesses, net |
|
0.9 |
|
|
|
0.2 |
|
|
|
— |
|
|
|
— |
|
|
0.7 |
|
|
|
0.01 |
|
|
|
|
Other costs* |
|
0.3 |
|
|
|
0.1 |
|
|
|
— |
|
|
|
— |
|
|
0.2 |
|
|
|
— |
|
|
|
|
Excluding adjustments |
$ |
40.0 |
|
|
$ |
12.1 |
|
|
$ |
(0.4 |
) |
|
$ |
5.8 |
|
$ |
22.5 |
|
|
$ |
0.39 |
|
|
30.3 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Three months ended
January 31, 2024 |
$ |
35.6 |
|
|
$ |
(38.2 |
) |
|
$ |
(0.5 |
) |
|
$ |
7.1 |
|
$ |
67.2 |
|
|
$ |
1.17 |
|
|
(107.3 |
)% |
|
Acquisition and integration related costs |
|
2.6 |
|
|
|
0.6 |
|
|
|
— |
|
|
|
— |
|
|
2.0 |
|
|
|
0.03 |
|
|
|
|
Restructuring charges |
|
5.7 |
|
|
|
1.4 |
|
|
|
— |
|
|
|
— |
|
|
4.3 |
|
|
|
0.08 |
|
|
|
|
Non-cash asset impairment charges |
|
1.3 |
|
|
|
0.3 |
|
|
|
— |
|
|
|
— |
|
|
1.0 |
|
|
|
0.02 |
|
|
|
|
(Gain) loss on disposal of properties, plants and equipment,
net |
|
(2.7 |
) |
|
|
(0.7 |
) |
|
|
— |
|
|
|
— |
|
|
(2.0 |
) |
|
|
(0.04 |
) |
|
|
|
Other costs* |
|
0.3 |
|
|
|
0.1 |
|
|
|
— |
|
|
|
— |
|
|
0.2 |
|
|
|
0.01 |
|
|
|
|
Excluding adjustments |
$ |
42.8 |
|
|
$ |
(36.5 |
) |
|
$ |
(0.5 |
) |
|
$ |
7.1 |
|
$ |
72.7 |
|
|
$ |
1.27 |
|
|
(85.3 |
)% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| *includes fiscal
year-end change costs and share-based compensation impact of
disposals of businesses |
| |
The impact of income tax (benefit) expense and
non-controlling interest on each adjustment is calculated based on
tax rates and ownership percentages specific to each applicable
entity.
| |
|
|
|
|
GREIF, INC. AND SUBSIDIARY COMPANIES GAAP
TO NON-GAAP RECONCILIATION NET
DEBTUNAUDITED |
| |
|
|
|
| (in
millions) |
January 31,2025 |
|
January 31,2024 |
|
Total debt |
$ |
2,840.2 |
|
|
$ |
2,291.8 |
|
| Cash and cash equivalents |
|
(201.1 |
) |
|
|
(179.3 |
) |
| Net debt |
$ |
2,639.1 |
|
|
$ |
2,112.5 |
|
| |
|
|
|
|
|
|
|
| |
|
|
|
GREIF, INC. AND SUBSIDIARY COMPANIES GAAP
TO NON-GAAP RECONCILIATION LEVERAGE
RATIOUNAUDITED |
| |
|
|
|
Trailing twelve month Credit Agreement EBITDA(in
millions) |
Trailing TwelveMonths Ended1/31/2025 |
Trailing TwelveMonths Ended1/31/2024 |
|
Net income |
$ |
228.8 |
|
|
$ |
360.3 |
|
|
Plus: Interest expense, net |
|
148.4 |
|
|
|
97.7 |
|
|
Plus: Income tax (benefit) expense |
|
79.9 |
|
|
|
41.9 |
|
|
Plus: Other (income) expense |
|
1.4 |
|
|
|
16.8 |
|
|
Plus: Equity earnings of unconsolidated affiliates, net of tax |
$ |
(2.9 |
) |
|
$ |
(2.2 |
) |
|
Plus: Non-cash pension settlement charge |
|
— |
|
|
|
3.5 |
|
| Operating profit |
$ |
455.6 |
|
|
$ |
518.0 |
|
|
Less: Equity earnings of unconsolidated affiliates, net of tax |
|
(2.9 |
) |
|
|
(2.2 |
) |
|
Plus: Depreciation, depletion and amortization expense |
|
267.5 |
|
|
|
235.9 |
|
|
Plus: Acquisition and integration related costs |
|
18.1 |
|
|
|
14.1 |
|
|
Plus: Restructuring charges |
|
2.4 |
|
|
|
22.0 |
|
|
Plus: Non-cash asset impairment charges |
|
15.0 |
|
|
|
21.1 |
|
|
Plus: (Gain) loss on disposal of properties, plants and equipment,
net |
|
(7.7 |
) |
|
|
(5.2 |
) |
|
Plus: (Gain) loss on disposal of businesses, net |
|
(45.1 |
) |
|
|
(9.4 |
) |
|
Plus: Other costs* |
|
3.7 |
|
|
|
3.7 |
|
| Adjusted EBITDA |
$ |
712.4 |
|
|
$ |
802.4 |
|
|
Credit Agreement adjustments to EBITDA(10) |
|
(6.7 |
) |
|
|
5.0 |
|
| Credit Agreement EBITDA |
$ |
705.7 |
|
|
$ |
807.4 |
|
| |
|
|
|
Adjusted net debt(in millions) |
For thePeriod Ended1/31/2025 |
For thePeriod Ended1/31/2024 |
|
Total debt |
$ |
2,840.2 |
|
|
$ |
2,291.8 |
|
|
Cash and cash equivalents |
|
(201.1 |
) |
|
|
(179.3 |
) |
| Net debt |
$ |
2,639.1 |
|
|
$ |
2,112.5 |
|
|
Credit Agreement adjustments to debt(11) |
|
(80.7 |
) |
|
|
(122.6 |
) |
| Adjusted net debt |
$ |
2,558.4 |
|
|
$ |
1,989.9 |
|
| |
|
|
| Leverage
ratio(12) |
3.63x |
|
2.46x |
|
| *includes fiscal
year-end change costs and share-based compensation impact of
disposals of businesses |
| |
(10) Adjustments to EBITDA are specified by the
2022 Credit Agreement and include equity earnings of unconsolidated
affiliates, net of tax, certain acquisition savings, deferred
financing costs, capitalized interest, income and expense in
connection with asset dispositions, and other items.(11)
Adjustments to net debt are specified by the 2022 Credit Agreement
and include the European accounts receivable program, letters of
credit, balances for swap contracts, and other items.(12) Leverage
ratio is defined as Credit Agreement adjusted net debt divided by
Credit Agreement adjusted EBITDA.
| |
|
|
GREIF, INC. AND SUBSIDIARY COMPANIES
PROJECTED 2025 GUIDANCE
RECONCILIATION ADJUSTED FREE CASH
FLOWUNAUDITED |
| |
|
| (in
millions) |
Fiscal 2025 Low-End Guidance Estimate |
|
Net cash provided by operating activities |
$ |
391.0 |
|
|
Cash paid for purchases of properties, plants and equipment |
|
(171.0 |
) |
| Free cash
flow |
$ |
220.0 |
|
|
Cash paid for acquisition and integration related costs |
|
17.0 |
|
|
Cash paid for integration related ERP systems and equipment |
|
6.0 |
|
|
Cash paid for fiscal year-end change costs |
|
2.0 |
|
| Adjusted free cash
flow |
$ |
245.0 |
|
Greif (NYSE:GEF.B)
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Greif (NYSE:GEF.B)
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