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Apr 30, 2021
Greif Q2 2021 Earnings Report
Greif reported strong second quarter results and reintroduced fiscal year 2021 earnings guidance.
Key Takeaways
Greif delivered a strong second quarter with solid results across the company, driving improved earnings and free cash flow. The company also enhanced colleague engagement and customer service levels, advanced its commitment to sustainability and achieved a notable reduction in leverage.
Net income increased to $149.8 million, or $2.51 per diluted Class A share.
Net cash provided by operating activities increased by $52.5 million to $152.3 million.
Total debt decreased by $368.9 million to $2,313.4 million.
Completed the sale of approximately 69,200 acres of timberlands for approximately $149.0 million in cash.
Forward Guidance
The company reintroduces annual guidance for fiscal 2021 with Class A earnings per share before adjustments expected to be $4.55 - $4.85 and adjusted free cash flow expected to be $285 - $325 million.
Positive Outlook
- Class A earnings per share before adjustments: $4.55 - $4.85
- Adjusted free cash flow: $285 - $325 million
- Depreciation and amortization expense: $237 - $242 million
- Interest expense, net: $97 - $101 million
- Adjusted capital expenditures: $130 - $150 million
Challenges Ahead
- Tax rate excluding the impact of special items: 22% - 26%
- Potential for gains or losses on the disposal of businesses, timberland or properties, plants and equipment, net
- Non-cash asset impairment charges due to unanticipated changes in the business
- Restructuring-related activities
Historical Earnings Impact
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Avg. Return Before/After Earnings
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