Greif, Inc 10-Q for FY2024 Q1

Greif, Inc (GEF)

10-Q 2024-02-29 For: 2024-01-31

Added on April 06, 2026

About this 10-Q

Greif, Inc filed this 10-Q on February 29, 2024, covering the quarter ended January 31, 2024 (FY2024 Q1).

Headline figures

Quarter ended January 31, 2024, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $1.21B; down 5.1% from $1.27B a year earlier
Net income: $67.2M; down 25.3% from net income of $89.9M a year earlier

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Delaware			31-4388903
(State or other jurisdiction of incorporation or organization)			(I.R.S. Employer Identification No.)


425 Winter Road, Delaware Ohio			43015
(Address of principal executive offices)			(Zip Code)


Title of Each Class	Trading Symbol(s)	Name of Each Exchange on Which Registered
Class A Common Stock	GEF	New York Stock Exchange
Class B Common Stock	GEF-B	New York Stock Exchange


Class A Common Stock			25,790,029 shares
Class B Common Stock			21,331,127 shares


Item		Page
	Part I. Financial Information
1	Financial Statements	3
	Condensed Consolidated Statements of Income for the Three Months Ended January 31, 202 4 and 202 3 (Unaudited)	3
	Condensed Consolidated Statements of Comprehensive Income for the Three Months Ended January 31, 2024 and 2023 (Unaudited)	4
	Condensed Consolidated Balance Sheets at January 31, 202 4 (Unaudited) and October 31, 202 3	5
	Condensed Consolidated Statements of Cash Flows for the Three Months Ended January 31, 2024 and 2023 (Unaudited)	7
	Condensed Consolidated Statements of Changes in Shareholders’ Equity for the Three Months Ended January 31, 2024 and 2023 (Unaudited)	8
	Notes to Condensed Consolidated Financial Statements (Unaudited)	9
2	Management’s Discussion and Analysis of Financial Condition and Results of Operations	24
4	Controls and Procedures	36

	Part II. Other Information
1A	Risk Factors	37
6	Exhibits	37
	Signatures	38


☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


	Three Months Ended January 31,
(in millions, except per share amounts)	2024		2023
Net sales	$	1,205.8	$	1,271.0
Cost of products sold	984.2		1,019.4
Gross profit	221.6		251.6
Selling, general and administrative expenses	145.8		139.4
Acquisition and integration related costs	2.6		7.5
Restructuring charges	5.7		2.4

Non-cash asset impairment charges	1.3		0.5
Gain on disposal of properties, plants and equipment, net	(2.7)		—
Gain on disposal of businesses, net	—		(54.6)
Operating profit	68.9		156.4
Interest expense, net	24.2		22.8


Other expense, net	9.1		3.3
Income before income tax expense and equity earnings of unconsolidated affiliates, net	35.6		130.3
Income tax (benefit) expense	(38.2)		37.7
Equity earnings of unconsolidated affiliates, net of tax	(0.5)		(0.5)
Net income	74.3		93.1
Net income attributable to noncontrolling interests	(7.1)		(3.2)
Net income attributable to Greif, Inc.	$	67.2	$	89.9
Basic earnings per share attributable to Greif, Inc. common shareholders:
Class A common stock	$	1.17	$	1.55
Class B common stock	$	1.75	$	2.31
Diluted earnings per share attributable to Greif, Inc. common shareholders:
Class A common stock	$	1.17	$	1.54
Class B common stock	$	1.75	$	2.31
Weighted-average number of Class A common shares outstanding:
Basic	25.5		25.7
Diluted	25.6		25.8
Weighted-average number of Class B common shares outstanding:
Basic	21.3		21.7
Diluted	21.3		21.7
Cash dividends declared per common share:
Class A common stock	$	0.52	$	0.50
Class B common stock	$	0.77	$	0.74


	Three Months Ended January 31,
(in millions)	2024		2023
Net income	$	74.3	$	93.1
Other comprehensive income (loss), net of tax:
Foreign currency translation	27.6		51.3
Derivative financial instruments	(36.2)		(25.7)
Minimum pension liabilities	(2.7)		(2.4)
Other comprehensive income (loss), net of tax	(11.3)		23.2
Comprehensive income	63.0		116.3
Comprehensive income attributable to noncontrolling interests	7.1		3.5
Comprehensive income attributable to Greif, Inc.	$	55.9	$	112.8


(in millions)	January 31, 2024		October 31, 2023
ASSETS
Current assets
Cash and cash equivalents	$	179.3	$	180.9
Trade accounts receivable, net of allowance	639.2		659.4
Inventories:
Raw materials	282.4		255.8

Finished goods	86.1		82.8
Assets held for sale	5.4		5.0

Prepaid expenses	66.5		46.0
Other current assets	130.4		139.2
	1,389.3		1,369.1
Long-term assets
Goodwill	1,704.1		1,693.0
Other intangible assets, net of amortization	773.5		792.2
Deferred tax assets	23.5		22.9

Pension assets	38.2		36.2
Operating lease right-of-use assets	298.0		290.3
Finance lease right-of-use assets	31.2		30.5
Other long-term assets	139.8		164.0
	3,008.3		3,029.1
Properties, plants and equipment
Timber properties, net of depletion	230.2		229.6
Land	154.9		153.7
Buildings	557.3		544.3
Machinery and equipment	2,178.6		2,138.8
Capital projects in progress	207.6		200.5
	3,328.6		3,266.9
Accumulated depreciation	(1,757.1)		(1,704.3)
	1,571.5		1,562.6
Total assets	$	5,969.1	$	5,960.8


	Three Months Ended January 31,
(in millions)	2024		2023
Cash flows from operating activities:
Net income	$	74.3	$	93.1
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, depletion and amortization	60.4		55.1
Non-cash asset impairment charges	1.3		0.5

Gain on disposals of properties, plants and equipment, net	(2.7)		—
Gain on disposals of businesses, net	—		(54.6)

Unrealized foreign exchange loss	7.6		0.1
Deferred income tax (benefit) expense	(49.2)		0.7


Non-cash lease expense	12.2		12.9
Other, net	0.5		0.5
Increase (decrease) in cash from changes in certain assets and liabilities, net of impacts from acquisitions:
Trade accounts receivable	21.5		112.0
Inventories	(28.0)		(2.6)

Accounts payable	(21.1)		(103.1)
Restructuring reserves	0.2		0.5
Operating leases	(12.5)		(12.8)
Pension and post-retirement benefit liabilities	(3.3)		(8.1)
Other, net	(56.7)		(61.3)
Net cash provided by operating activities	4.5		32.9
Cash flows from investing activities:
Purchases of business, net of cash acquired	—		(301.9)

Purchases of properties, plants and equipment	(55.6)		(49.3)
Purchases of timber properties	(1.8)		(2.3)





Payments for deferred purchase price of acquisitions	(1.2)		(21.7)
Proceeds from the sale of properties, plants, equipment and other assets	5.0		0.5
Proceeds from the sale of businesses	—		105.6


Net cash used in investing activities	(53.6)		(269.1)
Cash flows from financing activities:
Proceeds from issuance of long-term debt	529.1		836.3
Payments on long-term debt	(419.2)		(538.3)

Proceeds (payments) on short-term borrowings, net	12.7		(1.6)
Proceeds from trade accounts receivable credit facility	0.7		55.5
Payments on trade accounts receivable credit facility	(49.2)		(48.7)


Dividends paid to Greif, Inc. shareholders	(29.7)		(28.9)


Payments for share repurchases	—		(17.8)

Tax withholding payments for stock-based awards	(6.8)		(12.4)
Purchases of redeemable noncontrolling interest	—		(3.3)
Other, net	(1.5)		(1.3)

Net cash provided by financing activities	36.1		239.5

Effects of exchange rates on cash	11.4		10.6
Net (decrease) increase in cash and cash equivalents	(1.6)		13.9
Cash and cash equivalents at beginning of period	180.9		147.1
Cash and cash equivalents at end of period	$	179.3	$	161.0

























	Three Months Ended January 31, 2024
	Common Stock			Treasury Stock			Retained Earnings		Accumulated Other Comprehensive Income (Loss)		Greif, Inc. Equity		Non controlling Interests		Total Equity
(in millions, except for shares which are in thousands)	Common Shares	Amount		Treasury Shares	Amount
As of October 31, 2023	46,805	$	208.4	30,037	$	(281.9)	$	2,337.9	$	(316.5)	$	1,947.9	$	38.4	$	1,986.3
Net income							67.2				67.2		7.1		74.3
Other comprehensive income (loss):
Foreign currency translation									27.6		27.6		—		27.6
Derivative financial instruments, net of $11.9 million of income tax expense									(36.2)		(36.2)				(36.2)
Minimum pension liability adjustment, net of $0.1 million income tax benefit									(2.7)		(2.7)				(2.7)
Comprehensive income				.							55.9				63.0

Current period mark to redemption value of redeemable noncontrolling interest and other							2.3				2.3				2.3
Net income allocated to redeemable noncontrolling interests											—		(1.6)		(1.6)
Dividends paid to Greif, Inc. shareholders ($0.52 and $0.77 per Class A share and Class B share, respectively)							(29.7)				(29.7)				(29.7)


Colleague stock purchase plan	33	1.8		(33)	0.2						2.0				2.0

Long-term incentive shares issued	283	10.5		(283)	2.2						12.7				12.7
Share based compensation	—	1.4		—	—						1.4				1.4


As of January 31, 2024	47,121	$	222.1	29,721	$	(279.5)	$	2,377.7	$	(327.8)	$	1,992.5	$	43.9	$	2,036.4


























	Three Months Ended January 31, 2023
	Common Stock			Treasury Stock			Retained Earnings		Accumulated Other Comprehensive Income (Loss)		Greif, Inc. Equity		Non controlling Interests		Total Equity
(in millions, except for shares which are in thousands)	Common Shares	Amount		Treasury Shares	Amount
As of October 31, 2022	47,443	$	173.5	29,399	$	(205.1)	$	2,095.2	$	(302.3)	$	1,761.3	$	33.0	$	1,794.3
Net income							89.9				89.9		3.2		93.1
Other comprehensive income (loss):
Foreign currency translation									51.0		51.0		0.3		51.3
Derivative financial instruments, net of $8.5 million income tax expense									(25.7)		(25.7)				(25.7)
Minimum pension liability adjustment, net of $0.9 million income tax expense									(2.4)		(2.4)				(2.4)
Comprehensive income				.							112.8				116.3

Current period mark to redemption value of redeemable noncontrolling interest and other							0.8				0.8				0.8
Net income allocated to redeemable noncontrolling interests											—		0.3		0.3
Dividends paid to Greif, Inc. shareholders ($0.50 and $0.74 per Class A share and Class B share, respectively)							(28.9)				(28.9)				(28.9)

Dividends earned on RSU shares							0.4				0.4				0.4

Share repurchases	(232)	—		232	(17.8)						(17.8)				(17.8)
Long-term incentive shares issued	331	13.8		(331)	1.8						15.6				15.6
Share based compensation	—	1.2		—	—						1.2				1.2


As of January 31, 2023	47,542	$	188.5	29,300	$	(221.1)	$	2,157.4	$	(279.4)	$	1,845.4	$	36.8	$	1,882.2


(in millions)	Amounts Recognized as of the Acquisition Date		Measurement Period Adjustments		Amount Recognized as of Acquisition Date (as Adjusted)
Fair value of consideration transferred
Cash consideration	$	74.6	$	—	$	74.6
Noncontrolling interest	72.1		—		72.1

Recognized amounts of identifiable assets acquired and liabilities assumed
Accounts receivable	$	6.7	$	—	$	6.7
Inventories	3.3		—		3.3

Intangibles	59.0		—		59.0
Operating lease right-of use assets	8.6		—		8.6

Properties, plants and equipment	19.4		—		19.4
Total assets acquired	97.0		—		97.0

Accounts payable and other current liabilities	(1.8)		—		(1.8)


Operating lease liabilities	(8.6)		—		(8.6)


Total liabilities assumed	(10.4)		—		(10.4)
Total identifiable net assets	$	86.6	$	—	$	86.6
Goodwill	$	60.1	$	—	$	60.1


(in millions)	Purchase Price Allocation		Weighted Average Estimated Useful Life
Customer relationships	$	50.6	15.0
Trademarks	8.4		5.0
Total intangible assets	$	59.0


(in millions)	Employee Separation Costs		Other Costs		Total
Balance at October 31, 2023	$	16.4	$	0.4	$	16.8
Costs incurred and charged to expense	2.9		2.8		5.7
Costs paid or otherwise settled	(2.5)		(2.9)		(5.4)
Balance at January 31, 2024	$	16.8	$	0.3	$	17.1


(in millions)	January 31, 2024		October 31, 2023
2022 Credit Agreement - Term Loans	$	1,473.7	$	1,493.8
2023 Credit Agreement - Term Loan	294.4		296.3
Accounts receivable credit facilities	304.6		351.0
2022 Credit Agreement - Revolving Credit Facility	208.9		77.3

	2,281.6		2,218.4
Less: current portion	88.3		88.3
Less: deferred financing costs	8.0		8.7
Long-term debt, net	$	2,185.3	$	2,121.4


(in millions)	Total Amounts Expected to be Incurred		Amounts Incurred During the Three Months Ended January 31, 2024		Amounts Remaining to be Incurred
Global Industrial Packaging
Employee separation costs	$	4.2	$	0.7	$	3.5
Other restructuring costs	1.2		0.2		1.0
	5.4		0.9		4.5
Paper Packaging & Services
Employee separation costs	2.3		2.2		0.1
Other restructuring costs	11.8		2.6		9.2
	14.1		4.8		9.3




	$	19.5	$	5.7	$	13.8


	January 31, 2024
	Assets								Liabilities
(in millions)	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Interest rate derivatives	$	—	$	49.4	$	—	$	49.4	$	—	$	(13.2)	$	—	$	(13.2)
Foreign exchange hedges	—		3.3		—		3.3		—		(0.9)		—		(0.9)
Insurance annuity	—		—		19.3		19.3		—		—		—		—
Cross currency swap	—		17.4		—		17.4		—		(7.0)		—		(7.0)

	October 31, 2023
	Assets								Liabilities
(in millions)	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Interest rate derivatives	$	—	$	78.4	$	—	$	78.4	$	—	$	—	$	—	$	—
Foreign exchange hedges	—		0.1		—		0.1		—		(0.1)		—		(0.1)
Insurance annuity	—		—		18.8		18.8		—		—		—		—
Cross currency swap	—		18.9		—		18.9		—		—		—		—


	Authorized Shares	Issued Shares	Outstanding Shares	Treasury Shares
January 31, 2024
Class A Common Stock	128,000,000	42,281,920	25,790,029	16,491,891
Class B Common Stock	69,120,000	34,560,000	21,331,127	13,228,873

October 31, 2023
Class A Common Stock	128,000,000	42,281,920	25,474,254	16,807,666
Class B Common Stock	69,120,000	34,560,000	21,331,127	13,228,873


(in millions)	Foreign Currency Translation		Derivative Financial Instruments		Minimum Pension Liability Adjustment		Accumulated Other Comprehensive Income (Loss)
Balance as of October 31, 2023	$	(317.7)	$	71.7	$	(70.5)	$	(316.5)
Other comprehensive income (loss)	27.6		(36.2)		(2.7)		(11.3)
Balance as of January 31, 2024	$	(290.1)	$	35.5	$	(73.2)	$	(327.8)


(in millions)	Foreign Currency Translation		Derivative Financial Instruments		Minimum Pension Liability Adjustment		Accumulated Other Comprehensive Income (Loss)
Balance as of October 31, 2022	$	(316.5)	$	72.8	$	(58.6)	$	(302.3)
Other comprehensive income (loss)	51.0		(25.7)		(2.4)		22.9

Balance as of January 31, 2023	$	(265.5)	$	47.1	$	(61.0)	$	(279.4)


	Three Months Ended January 31, 2024
(in millions)	United States		Europe, Middle East and Africa		Asia Pacific and Other Americas		Total
Global Industrial Packaging	$	253.7	$	294.7	$	138.2	$	686.6
Paper Packaging & Services	505.5		—		9.1		514.6
Land Management	4.6		—		—		4.6
Total net sales	$	763.8	$	294.7	$	147.3	$	1,205.8


Three Months Ended January 31, (in millions)	2024		2023
Net cash provided by operating activities	$	4.5	$	32.9
Net cash used in investing activities	(53.6)		(269.1)
Net cash provided by financing activities	36.1		239.5
Effects of exchange rates on cash	11.4		10.6
Net (decrease) increase in cash and cash equivalents	(1.6)		13.9
Cash and cash equivalents at beginning of year	180.9		147.1
Cash and cash equivalents at end of period	$	179.3	$	161.0


Exhibit No.						Description of Exhibit

31.1						Certification of Chief Executive Officer Pursuant to Rule 13a — 14(a) of the Securities Exchange Act of 1934.

31.2						Certification of Chief Financial Officer Pursuant to Rule 13a — 14(a) of the Securities Exchange Act of 1934.

32.1						Certification of Chief Executive Officer required by Rule 13a —14(b) of the Securities Exchange Act of 1934 and Section 1350 of Chapter 63 of Title 18 of the United States Code.

32.2						Certification of Chief Financial Officer required by Rule 13a — 14(b) of the Securities Exchange Act of 1934 and Section 1350 of Chapter 63 of Title 18 of the United States Code.

101						The following financial statements from the Company’s Quarterly Report on Form 10-Q for the quarter ended January 31, 2024, formatted in Inline XBRL (Extensible Business Reporting Language): (i) Condensed Consolidated Statements of Income (ii) Condensed Consolidated Statements of Comprehensive Income, (iii) Condensed Consolidated Balance Sheets, (iv) Condensed Consolidated Statements of Cash Flow (v) Condensed Consolidated Statements of Changes in Shareholders’ Equity and (vi) Notes to Condensed Consolidated Financial Statements.


						GREIF, INC.
						(Registrant)

Date: February 29, 2024						/s/ LAWRENCE A. HILSHEIMER
						Lawrence A. Hilsheimer
						Executive Vice President and Chief Financial Officer


Date: February 29, 2024									/s/ OLE G. ROSGAARD
									Ole G. Rosgaard, President and Chief Executive Officer (Principal Executive Officer)


Date: February 29, 2024									/s/ LAWRENCE A. HILSHEIMER
									Lawrence A. Hilsheimer, Executive Vice President and Chief Financial Officer (Principal Financial Officer)


Date: February 29, 2024									/s/ OLE G. ROSGAARD
									Ole G. Rosgaard,
									President and Chief Executive Officer


Date: February 29, 2024									/s/ LAWRENCE A. HILSHEIMER
									Lawrence A. Hilsheimer,
									Executive Vice President and Chief Financial Officer