Daily Newsletter

01 September 2023

Daily Newsletter

01 September 2023

Greif’s net income declines to $96.7m in Q3 2023

The company also announced acquiring 51% ownership interest in paper partitions provider ColePak.

Soumya Sharma August 31 2023

Greif has reported a net income of $96.7m during the third quarter of 2023, a decline of around 33.8% from $146.1m in Q3 last year.

For the reported period, which ended on 31 July 2023, net income attributable to the company was $90.3m, while the same was $141.8m a year ago.

The diluted earnings per share attributable to Greif common shareholders of Class A common stock was $1.55 versus $2.36 in Q3 2022, while for the Class B common stock, it was $2.35 in the latest quarter as against $3.58 in Q3 2022.

The company’s net sales totalled $1.33bn, representing a decline 18% of from $1.62bn in previous year’s Q3.

This decrease in net sales has been attributed to the implementation of continued cost management actions.

The quarterly gross profit was down by 11.5% to $307m from $346.9m in the year ago period.

In Q3 2023, the operating profit also decreased to $155.6m from $205.7m during the same quarter in 2022.

The total earnings before interest, taxes, depreciation and amortisation (EBITDA) in Q3 2023 stood at $210.8m, as against $251.4m in previous year’s Q3.

Adjusted EBITDA saw a decline of $24.5m, from $251m in Q3 2022 to $226.5 in the latest quarter.

Greif CEO and president Ole Rosgaard said: “Our Build to Last strategy is clearly delivering value as we execute on our cost-management playbook and gain new business, with mix and margin benefits, underpinned by a continuous improvement focus throughout the enterprise.

“Collectively, these efforts drove EBITDA performance above our expectations and resulted in an impressive free cash flow conversion of nearly 75% in the quarter, truly a commendable outcome considering an average volume decline of 13% across our global product portfolio.”

In a separate development, Greif has announced acquiring 51% ownership interest in North America’s paper partitions provider ColePak.

This all-cash deal was funded through Greif's existing credit facility.

According to Greif, the addition of this business will provide “margin-accretive” converting capability to its Paper Packaging & Services business.

Asia Pacific Renewable Energy Policy 2023 Analysis

Countries in the APAC region should look to invest on upgrading grid infrastructure, energy storage systems, microgrids, and support mechanism for renewables to be able to achieve their climate goals. The growth trajectory of Europe cannot be implied in APAC since several countries were late entrants into the renewable market. APAC countries should look to weave their own roadmap towards achieving net zero emissions and leverage the large population into adopting renewable technology.

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