DELAWARE, Ohio – Greif, Inc. (NYSE: NYSE:) reported financial results for the first quarter of 2024 that were mixed compared to analysts’ expectations.
The company reported adjusted earnings per share (EPS) of $0.82, which was $0.03 below analysts’ consensus estimate of $0.85. However, revenue for the quarter was a different story, reaching $1.37 billion and beating the consensus estimate of $1.3 billion.
The supplier of industrial packaging products and services saw a noticeable decline in net income, which fell 60.1% to $44.4 million, or $0.77 per diluted Class A share, compared with $111.2 million in the prior year, or $1.90 per diluted Class A share. Excluding certain adjustments, net income decreased 53.9% to $47.9 million, or $0.82 per diluted Class A share, from $103.8 million, or $1.77 per diluted Class A share. compared to the same period last year (y/y).
Adjusted EBITDA also declined, down 25.7% to $169.9 million from $228.6 million in the second quarter of 2023. The company’s operating cash flow and adjusted free cash flow declined significantly, with the latter declining $126.5 million to $59.0 million.
Greif CEO Ole Rosgaard commented on the quarter’s results, noting that while the results were ahead of expectations, they were impacted by negative price and cost dynamics in the paper business due to delayed recognition of announced price increases. Rosgaard also highlighted the completion of the Ipackchem acquisition and the continued improvement in demand in key regions and end markets.
Looking ahead, Greif provided guidance for fiscal 2024, projecting adjusted EBITDA to be between $675 million and $725 million and adjusted free cash flow to be in the range of $175 million to $225 million. The midpoint of the adjusted EBITDA guidance range ($700 million) is a key metric to watch as it will be compared to future analyst consensus estimates to gauge market expectations.
With respect to dividends, the Board of Directors declared a quarterly cash dividend of $0.52 per share of Class A common stock and $0.78 per share of Class B common stock, payable on July 1, 2024 to stockholders of record as of June 18, 2024 of the year.
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