© Reuters.
DELAWARE, Ohio – Greif, Inc. (NYSE: NYSE:), a leader in industrial packaging products and services, announced its first quarter results for 2024, reporting a significant beat on adjusted earnings per share (EPS) but falling short on revenue expectations.
The company’s adjusted EPS for the quarter was $1.17, surpassing the analyst consensus of $0.48. However, Greif’s revenue for the quarter was $1.2 billion, below the consensus estimate of $1.28 billion.
Despite the strong adjusted EPS, Greif’s stock experienced a downturn, with shares falling 1.58%. This movement indicates a somewhat negative investor response, which may be attributed to the revenue miss and broader market conditions.
In comparison to the first quarter of 2023, Greif’s net income decreased from $89.9 million to $67.2 million, and adjusted EBITDA also saw a decline from $164.5 million to $128.0 million. The company cited a challenging operating environment and an extended period of slow demand as factors impacting its financial performance.
Ole Rosgaard, President and CEO of Greif, commented on the results, stating, “Greif once again has produced solid financial results in a challenging operating environment. Our team continues to navigate this extended slow demand environment, while making structural improvements to the business under our Build to Last Strategy.”
Looking ahead, Greif has not provided specific guidance for the remainder of the fiscal year due to the uncertain macro-economic environment and the inability to determine the trajectory of product demand.
The company has only released a low-end guidance estimate for fiscal 2024, projecting an adjusted EBITDA of $610 million and adjusted free cash flow of $200 million, based on current demand trends and price/cost factors in the Paper Packaging (NYSE:) and Services business segment.
Investors and stakeholders will be watching closely to see how Greif navigates the ongoing market challenges and whether its strategic initiatives, including the upcoming acquisition of Ipackchem, will bolster its financial standing in the competitive industrial packaging sector.
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