Greif Q4 2024 Earnings Report
Key Takeaways
Greif, Inc. announced its fourth quarter and fiscal year 2024 results, with net income decreasing by 6.5% to $63.4 million, or $1.08 per diluted Class A share, compared to the previous year. Adjusted EBITDA decreased by 2.0% to $197.6 million. Despite a multi-year period of industrial contraction, the company reported increased net sales in both Global Industrial Packaging and Paper Packaging & Services segments.
Net income decreased 6.5% to $63.4 million, or $1.08 per diluted Class A share.
Adjusted EBITDA decreased 2.0% to $197.6 million.
Net sales increased in both Global Industrial Packaging and Paper Packaging & Services segments.
The company is targeting $100 million of structural cost optimization.
Greif
Greif
Greif Revenue by Segment
Forward Guidance
The company provided low-end guidance based on the continuation of demand trends reflected in the past year, current price/cost factors in Paper Packaging and Services, and other identifiable discrete items.
Positive Outlook
- Adjusted EBITDA is expected to be $675 million.
- Adjusted free cash flow is expected to be $225 million.
Challenges Ahead
- Markets have experienced a multi-year period of industrial contraction.
- No compelling demand inflection on the horizon.
- Guidance is based on the continuation of demand trends reflected in the past year.
- Guidance is based on current price/cost factors in Paper Packaging and Services.
- Fiscal 2025 net income guidance is not provided due to the potential for variability and difficulty in forecasting certain items.
Revenue & Expenses
Visualization of income flow from segment revenue to net income