Greif Inc (GEF) Q4 2024 Earnings Call Highlights: Strategic Optimizations Amidst Market Challenges

GuruFocus.com12-06

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 ...

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overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nGreif Inc (GEF) Q4 2024 Earnings Call Highlights: Strategic Optimizations Amidst Market Challenges\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-12-06 15:01 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://finance.yahoo.com/news/greif-inc-gef-q4-2024-070107604.html><strong>GuruFocus.com</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Corrected Q4 Net Income: $65.5 million.\nCorrected Diluted Class A EPS: $1.13 per share.\nAdjusted EBITDA (Q4): $198 million, compared to $202 million last year.\nAdjusted Free Cash Flow (Q4): $145 ...</p>\n\n<a href=\"https://finance.yahoo.com/news/greif-inc-gef-q4-2024-070107604.html\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"GEF","symbol_name":"格瑞夫","start_time":0,"source_url":"https://finance.yahoo.com/news/greif-inc-gef-q4-2024-070107604.html","article_id":"2489477562","we_media_id":null,"thumbnails":["https://s.yimg.com/uu/api/res/1.2/qzl_LT1cUH7hKAeNUAqBVw--~B/aD02MDt3PTE4MDthcHBpZD15dGFjaHlvbg--/https://media.zenfs.com/en/us.finance.gurufocus/c91f0a4da243a2f72b5eac635a91ee7e"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2489477562","pubTimestamp":1733468467,"columns":[],"sourceInfo":{"source_id":"yahoofinance","name":"雅虎金融"},"weMediaInfo":null,"summary":"Corrected Diluted Class A EPS: $1.13 per share.Adjusted EBITDA : $198 million, compared to $202 million last year.Adjusted Free Cash Flow : $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.GuruFocus has detected 6 Warning Signs with GEF.Greif Inc  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.Greif Inc  has announced a business optimization effort targeting at least $100 million in cost reductions by the end of fiscal 2027.A: Ole Rosgaard, CEO: The program is not about fixing something bro","collect":0,"end_time":0,"defaultTopTitle":"yahoo.com","property":["earning"],"viewcount":null,"language":"en","relate_stocks":{"GEF":"格瑞夫"},"translate_title":"Greif Inc(GEF)2024年第四季度收益看涨期权亮点：市场挑战中的战略优化","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"GEF":1},"content_text":"Corrected Q4 Net Income: $65.5 million.\nCorrected Diluted Class A EPS: $1.13 per share.\nAdjusted EBITDA (Q4): $198 million, compared to $202 million last year.\nAdjusted Free Cash Flow (Q4): $145 million, compared to $136 million last year.\nGIP Adjusted EBITDA Margin: Down 70 basis points year-over-year.\nPPS Adjusted EBITDA Margin: Decline of 240 basis points year-over-year, but improved sequentially by 220 basis points.\nLeverage Ratio: 3.53 at the end of fiscal 2024.\nFiscal 2025 Low-End Guidance for Adjusted EBITDA: $675 million on an 11-month basis.\nNet Promoter Score: 69, above the benchmark of 51 for world-class in manufacturing.\n\n\nWarning! GuruFocus has detected 6 Warning Signs with GEF.\n\nRelease Date: December 05, 2024\nFor the complete transcript of the earnings call, please refer to the full earnings call transcript.\n Positive Points \n\nGreif 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.\nThe company has fundamentally changed its operating model to leverage core competitive advantages, aiming to double its size in the future.\nGreif Inc (NYSE:GEF) has announced a business optimization effort targeting at least $100 million in cost reductions by the end of fiscal 2027.\nThe company has successfully integrated Ipackchem, with significant progress on synergy capture, despite initial volume challenges.\nGreif Inc (NYSE:GEF) achieved a Net Promoter Score of 69, indicating world-class customer service and strong customer loyalty.\n\n Negative Points \n\nThe company experienced an unplanned $2 million headwind from Hurricane Helene in Q4.\nGreif Inc (NYSE:GEF) is facing a prolonged industrial contraction, with North American demand remaining choppy and volumes down significantly.\nThe company's leverage ratio is currently above its target range due to recent acquisitions and low EBITDA, necessitating a focus on debt reduction.\nPricing competition in the Global Industrial Packaging (GIP) business remains intense, impacting EBITDA margins.\nThe Ipackchem acquisition's EBITDA contribution is expected to be less than initially anticipated due to ongoing volume challenges in the agrochemical sector.\n\n Q & A Highlights \nQ: 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.\nQ: Can you provide more details on the $100 million cost-cutting program by 2027? A: Ole Rosgaard, CEO: The program is not about fixing something broken but enhancing our efficiency. It involves SG&A rationalization, network optimization, and operational efficiencies driven by our business systems. We aim to realize these savings before 2027, but specific timelines are still being determined.\nQ: What is the base volume assumption for the 2025 outlook, and what gives you confidence in achieving it? A: Lawrence Hilsheimer, CFO: We expect growth in our containerboard and corrugated business, supported by a significant contractual win with the US Postal Service. Our Polymer Solutions also show promising growth prospects, while we anticipate some volume contraction in our metals business.\nQ: How does the current leverage ratio affect your financial strategy? A: Lawrence Hilsheimer, CFO: We are comfortable with our current leverage ratio due to the industrial recession's impact. We plan to reduce debt as the economy recovers, which will naturally lower our leverage ratio.\nQ: Does your guidance assume the full implementation of the containerboard price increase? A: Lawrence Hilsheimer, CFO: No, our guidance does not include the containerboard price increase, which is set to be effective January 1. We expect the demand dynamics to support this increase.\nFor the complete transcript of the earnings call, please refer to the full earnings call transcript.This article first appeared on \nGuruFocus.","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"1","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.3","shortVersion":"4.29.3","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2489477562"}