{"id":7500,"date":"2025-06-05T04:05:19","date_gmt":"2025-06-05T08:05:19","guid":{"rendered":"https:\/\/www.packagingindustrynews.com\/?p=7500"},"modified":"2025-06-05T04:05:19","modified_gmt":"2025-06-05T08:05:19","slug":"greif-ups-fy25-guidance-amid-q2-net-income-and-sales-rise","status":"publish","type":"post","link":"https:\/\/www.packagingindustrynews.com\/?p=7500","title":{"rendered":"Greif ups FY25 guidance amid Q2 net income and sales rise"},"content":{"rendered":"


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Greif anticipates adjusted EBITDA to be at least $725m for FY25. Credit: JHVEPhoto\/Shutterstock.<\/figcaption><\/figure>\n<\/p><\/div>\n

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.<\/p>\n

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.<\/p>\n

This translates to earnings of $0.82 per diluted Class A share, up from $0.77 per diluted Class A share in Q2 2024.<\/p>\n

The company recorded net sales of $1.38bn for the quarter, a slight increase from $1.37bn during the corresponding period last year.<\/p>\n

Gross profit for the second quarter reached $319.5m, compared to $270.1m in Q2 2024.<\/p>\n

Operating profit also saw an increase, amounting to $118.6m from $98.1m in the same quarter last year.<\/p>\n

Adjusted earnings before interest, taxes, depreciation, and amortisation (EBITDA) rose by 26%, reaching $213.9m, compared to $169.7m in the previous year\u2019s second quarter.<\/p>\n

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.<\/p>\n

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.<\/p>\n

Greif CEO Ole Rosgaard said: \u201cGreif 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.<\/p>\n

\u201cThe 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.\u201d<\/p>\n

For FY25, Greif anticipates adjusted EBITDA to be at least $725m and adjusted free cash flow to reach a minimum of $280m.<\/p>\n

In March this year, Greif announced the permanent closure<\/a> of its paperboard facility in Los Angeles, California, US.<\/p>\n

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