Greif, Inc. GEF reported adjusted earnings per share of $1.27 for first-quarter fiscal 2024, beating the Zacks Consensus Estimate of 20 cents. The bottom line increased 20% year over year.

Including one-time items, EPS was $1.75 in the quarter compared with $2.31 in the prior-year quarter.

Operational Update

Sales moved down 5.1% year over year to $1.20 billion due to lower volumes and average selling prices. However, the top line beat the Zacks Consensus Estimate of $1.19 billion.

The cost of sales declined 3.5% year over year to $984 million. Gross profit amounted to $222 million, down 11.9% from the prior-year quarter. The gross margin came in at 18.4%, down from last year’s 19.8%.

Selling, general and administrative expenses were $146 million compared with the prior-year quarter’s $139 million. Adjusted EBITDA declined 22.2% year over year to $128 million in the fiscal first quarter.

Greif, Inc. Price, Consensus and EPS Surprise

 

Greif, Inc. price-consensus-eps-surprise-chart | Greif, Inc. Quote

Segmental Performance

Sales in the Global Industrial Packaging segment were $687 million, lower than the prior-year quarter’s $706 million on declining volumes and average selling prices. Our model projected revenues of $645 million for the quarter. The segment’s adjusted EBITDA amounted to $71 million compared with the year-ago quarter’s $72 million. The reported figure beat our estimate of $46 million.

The Paper Packaging segment’s sales fell 8.1% year over year to $515 million in the fiscal first quarter due to a decline in volumes and lower selling prices. The figure missed our estimated sales of $550 million. The segment’s adjusted EBITDA moved down to $55.5 million from the prior-year quarter’s $91 million. We projected the segment’s adjusted EBITDA to be $43 million.

The Land Management segment’s sales totaled $4.6 million in the reported quarter compared with $5 million in the year-ago quarter. We projected the segment's sales to be $4.8 million in the quarter. Adjusted EBITDA was $1.6 million compared with the year-earlier quarter’s $2 million. Our projection for the quarter’s adjusted EBITDA was $1 million.

Financial Position

Greif reported cash and cash equivalents of $179 million at the end of first-quarter fiscal 2024 compared with $181 million at the end of fiscal 2023. Cash flow from operating activities totaled $4.5 million in the quarter under review compared with $33 million in the prior year quarter.

Long-term debt amounted to $2.18 billion as of Jan 31, 2024, compared with $2.12 billion as of Oct 31, 2023.