•
Apr 30, 2020

Greif Q2 2020 Earnings Report

Greif's financial performance showed resilience amid challenging conditions, with adjusted EBITDA and free cash flow increasing.

Key Takeaways

Greif reported second-quarter results, with net income decreasing compared to the previous year, but adjusted EBITDA and free cash flow increased. The company completed the divestiture of the Consumer Packaging Business and announced the permanent closure of the Mobile, Alabama Uncoated Recycled Board Mill. Due to end market uncertainty, the company withdrew its fiscal 2020 adjusted Class A earnings per share and adjusted free cash flow guidance.

Net income decreased to $11.4 million, or $0.19 per diluted Class A share.

Adjusted EBITDA increased by $19.3 million to $181.3 million.

Net cash provided by operating activities increased by $37.6 million to $99.8 million.

Total debt decreased by $260.2 million to $2,682.3 million.

Total Revenue
$1.16B
Previous year: $1.21B
-4.5%
EPS
$0.95
Previous year: $0.81
+17.3%
Global Industrial Packaging Volume Impact
1.3%
Global Industrial Packaging Price/Mix Impact
-2.4%
Paper Packaging Services Volume Impact
5.1%
Cash and Equivalents
$72.4M
Free Cash Flow
$71.9M
Total Assets
$5.53B

Greif

Greif

Greif Revenue by Segment

Forward Guidance

Withdrawing fiscal 2020 adjusted Class A earnings per share and adjusted free cash flow guidance. Due to end market uncertainty, the Company is unable to reasonably quantify the impacts to its business for the remainder of its fiscal year. The Company plans to reinstate guidance in the future when there is better clarity into the duration and impact of the COVID-19 pandemic.