Thu, Aug 29, 6:03 PM (138 days ago)
Greif, Inc. reported a mixed financial performance for the third quarter ending July 31, 2024, with net sales increasing to $1,454.2 million from $1,330.3 million in Q3 2023. However, gross profit decreased to $290.4 million, reflecting rising raw material and operational costs, resulting in a gross margin decline to 20.0%. Operating profit rose to $171.0 million, aided by a $46.1 million gain from the divestiture of Delta Petroleum. Net income fell slightly to $93.6 million, while Adjusted EBITDA decreased to $193.7 million from $226.5 million year-over-year. For the nine months, total net sales reached $4,031.0 million, up from $3,910.2 million, driven by higher prices and volumes, particularly in the Global Industrial Packaging segment. However, gross profit dropped significantly to $782.1 million due to increased costs, leading to a gross margin of 19.4%. The company’s liquidity remains stable, with cash and equivalents at $194.2 million, although cash provided by operating activities decreased to $168.8 million from $446.0 million. The company’s financial obligations increased, driven by acquisitions, notably Ipackchem, which was acquired for $582.1 million in March 2024. Overall, Greif faces ongoing challenges from cost pressures and mixed demand trends.