Industrial packaging products and services provider Greif has reported a decrease in net income to $63.4m in the fiscal fourth quarter (Q4) of 2024 compared to $67.8m in the same quarter of the previous year, a 6.5% decline.
Greif’s net sales are primarily influenced by the volume of primary products sold, selling prices, product mix, and the impact of changes in foreign currencies against the US dollar.
Adjusted earnings before interest, taxes, depreciation, and amortisation (EBITDA) also experienced a decrease, down 2% to $197.6m compared to $201.6m previously.
The company’s net cash from operating activities declined by $16.3m to $187.2m, although adjusted free cash flow saw an increase of $8.5m to $144.7m.
For the full fiscal year, Greif’s net income decreased by 27% to $262.1m compared to $359.2m in fiscal year 2023.
The company’s adjusted EBITDA for the year also dropped by 15.6% to $694.2m from $822.2m.
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Net cash provided by operating activities decreased by $293.5m to $356m and adjusted free cash flow went down by $291.4m to $189.8m.
Greif’s total debt increased by $525.5m to $2.74bn, with net debt rising by $508.7m to $2.54bn in fiscal year 2024.
The leverage ratio increased to 3.53 times from 2.2 times in the previous year’s fourth quarter, although it decreased from 3.64 times sequentially.
The company has completed a business model optimisation project, which will result in four new reportable segments from Q1 2025, Customised Polymer Solutions; Durable Metal Solutions; Sustainable Fiber Solutions; and Integrated Solutions.
Greif CEO Ole Rosgaard said: “I am pleased to report a solid fourth quarter and full-year 2024 result, particularly in light of the continuation of this extended period of industrial contraction. While managing the business for the present, we also made significant strides under our Build to Last strategy towards the future, and our executive team and I look forward to sharing more information at our Investor Day next week.
“Our investors can expect an interactive and engaging half-day session, and we highly encourage your in-person attendance as we look forward to 2025 and beyond.”
