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Oct 31, 2023

Greif Q4 2023 Earnings Report

Greif reported mixed results due to market headwinds and lower volumes, but achieved the second-best year in company history for Adjusted EBITDA and Adjusted Free Cash Flow.

Key Takeaways

Greif reported fourth quarter results with net income decreasing to $67.8 million from $99.5 million in the prior year. Net sales also decreased to $1,308.4 million from $1,495.8 million. Despite these declines, the company highlighted its second-best year in history for Adjusted EBITDA and Adjusted Free Cash Flow.

Net income decreased to $67.8 million, or $1.16 per diluted Class A share, compared to $99.5 million, or $1.67 per diluted Class A share, in the fourth quarter of 2022.

Adjusted EBITDA decreased to $199.2 million from $218.7 million in the prior year.

Net sales decreased to $1,308.4 million from $1,495.8 million in the fourth quarter of 2022.

The company completed the acquisition of Reliance Products, Ltd. and signed an agreement to acquire Ipackchem Group SAS.

Total Revenue
$1.31B
Previous year: $1.5B
-12.6%
EPS
$1.56
Previous year: $1.83
-14.8%
Global Industrial Packaging Volume Impact
-10.1%
Global Industrial Packaging Price/Mix Impact
-6.6%
Paper Packaging Services Volume Impact
-5%
Gross Profit
$276M
Cash and Equivalents
$181M
Free Cash Flow
$126M
Total Assets
$5.96B

Greif

Greif

Greif Revenue by Segment

Forward Guidance

Greif is providing a low-end guidance estimate for fiscal year 2024, based on the continuation of demand trends reflected in the past year and current price/cost factors in Paper Packaging and Services. The low-end guidance does not factor in any contribution from the proposed acquisition of Ipackchem or other near-term M&A opportunities.

Revenue & Expenses

Visualization of income flow from segment revenue to net income