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Jan 31, 2023
Greif Q1 2023 Earnings Report
Greif's Q1 2023 results were impacted by destocking, lower customer demand and inflationary pressures, but the team demonstrated resilience and progressed on the Build to Last strategy.
Key Takeaways
Greif reported a net income of $89.9 million, or $1.54 per diluted Class A share, and adjusted EBITDA of $164.5 million. The company completed the acquisition of Lee Container Corporation and announced an agreement to increase its ownership interest in Centurion Container LLC.
Net income increased compared to the first quarter of 2022.
Adjusted EBITDA decreased compared to the first quarter of 2022.
Net cash provided by operating activities increased by $10.5 million to $32.9 million.
Completed acquisition of Lee Container Corporation and progressing ahead of schedule on planned integration.
Forward Guidance
Given the significant deterioration of product demand in the past two quarters and the degree of uncertainty in the forward looking macro-economic environment, the company is providing only a low-end guidance estimate for fiscal year 2023.
Positive Outlook
- Low-end guidance estimate is based on the continuation of demand trends reflected in the recent two quarters, modified only by normal lifts related to agricultural, construction, and other seasonal end markets.
- Potential contribution from the recently announced potential Centurion transaction.
- Potential contribution from other near-term actionable opportunities in our M&A pipeline.
- Adjusted EBITDA is expected to be $740 million.
- Adjusted free cash flow is expected to be $370 million.
Challenges Ahead
- Significant deterioration of product demand in the past two quarters.
- Degree of uncertainty in the forward looking macro-economic environment.
- Unable to determine the trajectory of product demand for the remainder of our fiscal year.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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