DELAWARE, Ohio - Greif, Inc. (NYSE: NYSE:GEF) has released its financial results for the first quarter of 2024, with mixed outcomes in comparison to analyst expectations.
The company reported adjusted earnings per share (EPS) of $0.82, which fell short of the analyst consensus of $0.85 by $0.03. However, revenue for the quarter was a different story, reaching $1.37 billion and surpassing the consensus estimate of $1.3 billion.
The industrial packaging products and services provider saw a notable decline in net income, which dropped 60.1% to $44.4 million, or $0.77 per diluted Class A share, from the previous year's $111.2 million, or $1.90 per diluted Class A share. When excluding certain adjustments, net income decreased by 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, year-over-year (YoY).
Adjusted EBITDA also saw a downturn, decreasing 25.7% to $169.9 million compared to the second quarter of 2023's $228.6 million. The company's operating cash flow and adjusted free cash flow both experienced significant reductions, with the latter decreasing by $126.5 million to a source of $59.0 million.
Greif's CEO, Ole Rosgaard, commented on the quarter's performance, noting that despite the results exceeding expectations, they were impacted by negative price-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 across key regions and end markets.
Looking ahead, Greif provided its fiscal 2024 outlook, 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 figure to watch, as it will be compared to future analyst consensus estimates to gauge market expectations.
As for dividends, the Board of Directors declared quarterly cash dividends 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.
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