In This Article:
-
Corrected Q4 Net Income: $65.5 million.
-
Corrected Diluted Class A EPS: $1.13 per share.
-
Adjusted EBITDA (Q4): $198 million, compared to $202 million last year.
-
Adjusted Free Cash Flow (Q4): $145 million, compared to $136 million last year.
-
GIP Adjusted EBITDA Margin: Down 70 basis points year-over-year.
-
PPS Adjusted EBITDA Margin: Decline of 240 basis points year-over-year, but improved sequentially by 220 basis points.
-
Leverage Ratio: 3.53 at the end of fiscal 2024.
-
Fiscal 2025 Low-End Guidance for Adjusted EBITDA: $675 million on an 11-month basis.
-
Net Promoter Score: 69, above the benchmark of 51 for world-class in manufacturing.
Release Date: December 05, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
-
Greif Inc (NYSE:GEF) reported a corrected Q4 net income of $65.5 million and diluted Class A earnings per share of $1.13, reflecting a positive adjustment from an earlier error.
-
The company has fundamentally changed its operating model to leverage core competitive advantages, aiming to double its size in the future.
-
Greif Inc (NYSE:GEF) has announced a business optimization effort targeting at least $100 million in cost reductions by the end of fiscal 2027.
-
The company has successfully integrated Ipackchem, with significant progress on synergy capture, despite initial volume challenges.
-
Greif Inc (NYSE:GEF) achieved a Net Promoter Score of 69, indicating world-class customer service and strong customer loyalty.
Negative Points
-
The company experienced an unplanned $2 million headwind from Hurricane Helene in Q4.
-
Greif Inc (NYSE:GEF) is facing a prolonged industrial contraction, with North American demand remaining choppy and volumes down significantly.
-
The company's leverage ratio is currently above its target range due to recent acquisitions and low EBITDA, necessitating a focus on debt reduction.
-
Pricing competition in the Global Industrial Packaging (GIP) business remains intense, impacting EBITDA margins.
-
The Ipackchem acquisition's EBITDA contribution is expected to be less than initially anticipated due to ongoing volume challenges in the agrochemical sector.
Q & A Highlights
Q: Looking ahead, where can we expect incremental investment beyond customized Polymer Solutions? A: Ole Rosgaard, CEO: While Polymer Solutions is a primary focus due to its high margins and cash flow conversion, we also plan to invest in automation within our metals business and expand our caps and closures segment, which is a smaller but attractive part of our portfolio.