Industrial packaging company Greif has reported a 3.5% decrease in net income for the third quarter (Q3) of fiscal year 2024 (FY24), with figures standing at $87.1m compared to $90.3m in Q3 FY23.
The company’s earnings per diluted Class A share dropped slightly from $1.55 in the third quarter of FY23 to $1.50 in Q3 FY24.
However, the company experienced a rise in net sales, reaching $1.45bn for the quarter ending 31 July 2024, up from $1.33bn in Q3 FY23.
Gross profit of Greif for the quarter was reported at $290.4m in Q3 FY24, a decrease from $307.0m in the same period last year.
On the other hand, the company’s operating profit showed a positive trend, increasing to $171.0m over the quarter from $155.6m in Q3 FY23.
The global Industrial Packaging segment of Greif saw a significant increase in net sales, which rose by $84.2m to $846.0m.
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This was attributed to higher average selling prices, increased volumes, and contributions from recent acquisitions.
The segment’s gross profit also saw an increase, rising by $8.8m to $185.6m.
In contrast, the Paper Packaging and Services segment reported a rise in net sales by $39.7m to $603.6m, primarily due to higher average selling prices and volumes, along with contributions from recent acquisitions.
However, the gross profit for this segment saw a decrease, falling by $25.6m to $102.5m.
Greif’s total debt stood at $2.90bn at the end of the quarter, with net debt increasing by $701.5m to $2.71bn.
Greif president and CEO Ole Rosgaard said: “We are proud to present another solid quarter of performance for Greif.
“While global markets remain uncertain, our diligence in maintaining close contact with our customers has resulted in positive volume momentum in all regions.
“We are also making strides internally. We are nearing completion of the previously announced internal re-alignment of operating and commercial functions and plan to discuss the benefits of that transition in greater detail at our upcoming Investor Day on 11 December.”
