Industrial packaging solutions provider Greif has updated its fiscal year 2025 (FY25) guidance, lifting the lower end due to a strong performance in the second quarter (Q2) and a more favourable projection for price and cost dynamics compared to earlier forecasts.
The company reported an increase in non-generally accepted accounting principles net income and sales for the quarter, with net income of $47.3m, representing a 6.5% increase from the $44.4m reported in the same quarter of the previous year.
This translates to earnings of $0.82 per diluted Class A share, up from $0.77 per diluted Class A share in Q2 2024.
The company recorded net sales of $1.38bn for the quarter, a slight increase from $1.37bn during the corresponding period last year.
Gross profit for the second quarter reached $319.5m, compared to $270.1m in Q2 2024.
Operating profit also saw an increase, amounting to $118.6m from $98.1m in the same quarter last year.
Adjusted earnings before interest, taxes, depreciation, and amortisation (EBITDA) rose by 26%, reaching $213.9m, compared to $169.7m in the previous year’s second quarter.
In terms of debt management, Greif reported a total debt of $2.77bn, which is a decrease of $140.9m. Net debt fell by $197.6m, bringing it down to $2.5bn.
Greif has made progress in its cost optimisation programme, achieving $10m in run-rate savings by the end of the quarter. The company anticipates achieving between $15m and $25m in run-rate savings by the conclusion of FY25.
Greif CEO Ole Rosgaard said: “Greif delivered another strong quarter, balancing near-term financial execution with long-term strategic progress under our Build to Last strategy. We accelerated structural cost reductions and are on track to meet our 2025 targets.
“The resilience of our results, supported by deliberate portfolio moves and operational discipline, demonstrates that Greif is well-positioned for success and value creation now and in the future.”
For FY25, Greif anticipates adjusted EBITDA to be at least $725m and adjusted free cash flow to reach a minimum of $280m.
In March this year, Greif announced the permanent closure of its paperboard facility in Los Angeles, California, US.
