Greif’s net income down in Q3

Delaware, Ohio-based industrial packaging company Greif Inc. is reporting what it says are “solid” third-quarter results despite a mixed demand backdrop globally and a challenging price/cost environment in its Paper Packaging and Services (PPS) division.

The company brought in $87.1 million in net income in the quarter, down 3.5 percent compared with the same period last year, while its adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) is down 14.5 percent to $193.7 million compared with $226.5 million last year.

“We are proud to present another solid quarter of performance for Greif,” President and CEO Ole Rosgaard says. “While global markets remain uncertain, our diligence in maintaining close contact with our customers has resulted in positive volume momentum in all regions.”

In its Global Industrial Packaging (GIP) segment, Greif’s net sales increased to $846 million compared with $761.9 million in the third quarter of 2023, while gross profit for the segment is up from $176.8 million in 2023 to $185.6 million in the most recently completed quarter. However, adjusted EBITDA is down slightly, coming in at $122.3 million compared with $126.5 million last year.

The company says GIP end markets remained mixed globally, but positive momentum occurred with volumes up year over year in all regions.

Net sales in the PPS segment increased from $563.9 million last year to $603.6 million this year. Greif attributes the nearly $40 million increase to higher average selling prices, higher volumes and contributions from recent acquisitions.

However, gross profit, operating profit and adjusted EBITDA for the PPS segment decreased.

PPS gross profit came in at $102.5 million, a nearly $26 million decline from the third quarter of last year, while operating profit was down $14.6 million and adjusted EBITDA is down $28.7 million. Greif attributes these declines to higher raw material, transportation and manufacturing costs, partially offset from the higher selling prices and volumes that impacted net sales.

“We are also making strides internally,” Rosgaard says. “We are nearing completion of the previously announced internal realignment of operating and commercial functions and plan to discuss the benefits of that transition in greater detail at our upcoming Investor Day on Dec. 11.”

Greif’s full third-quarter 2024 earnings presentation can be found on the Investors page of the company's website.