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Greif Reports Second Quarter 2023 Results

General News
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Greif, Inc., a global leader in industrial packaging products and services, today announced second quarter 2023 results.

Second Quarter Financial Highlights include (all results compared to the second quarter of 2022 unless otherwise noted):

  • Net income of $111.2 million or $1.90 per diluted Class A share decreased compared to net income of $125.1 million or $2.09 per diluted Class A share. Net income, excluding the impact of adjustments(1), of $103.8 million or $1.77 per diluted Class A share decreased compared to net income, excluding the impact of adjustments, of $144.9 million or $2.41 per diluted Class A share.
  • Adjusted EBITDA(2) of $228.6 million decreased by $22.4 million compared to Adjusted EBITDA of $251.0 million.
  • Net cash provided by operating activities increased by $71.6 million to $210.8 million. Adjusted free cash flow(3) increased by $70.7 million to a source of $185.5 million.
  • Total debt of $2,289.2 million increased by $189.3 million primarily due to funds needed for the Centurion Container LLC (“Centurion”) and Lee Container acquisitions completed in fiscal Q2 2023 and Q1 2023, respectively, partially offset by the funds received from the Tama, IA mill divestiture in Q1 2023. Net debt(4) increased by $139.5 million to $2,130.7 million. Our leverage ratio(5) increased to 2.25x from 2.11x sequentially, which is within our targeted leverage ratio range of 2.0x – 2.5x, and increased from 2.12x in the prior year quarter.

Strategic Actions and Announcements

  • On March 31, 2023, we completed the previously announced transaction increasing our ownership stake in Centurion from approximately 10% to 80% in an all-cash transaction for $145.0 million. The one-month of contribution from Centurion is reported within the second quarter 2023 Global Industrial Packaging segment results, and our revised guidance includes the expected contribution from Centurion for the remainder of the year.

CEO Commentary

“The past three months have truly showcased the remarkable effectiveness of our Build to Last strategy,” commented Ole Rosgaard, President and Chief Executive Officer of Greif. “Despite operating in an environment of ongoing demand uncertainties, our teams have remained agile and resolutely focused on delivering exceptional value to our shareholders. They have successfully implemented cost rationalization measures within our system, driving robust cash flow generation and achieving the highest-ever second-quarter free cash flow in our company’s history. Additionally, we have achieved the second-highest second-quarter EBITDA, surpassing all quarters except the historic Q2 2022 comparative against which this quarter’s performance is measured. I am immensely proud of our teams, who continue to demonstrate unwavering dedication, motivation, and excellence in their work.”

Build to Last Mission Progress

Customer satisfaction is a key component of our mission to deliver Legendary Customer Service. Our consolidated CSI(6) score was 94.1 at the end of the second quarter 2023. Paper Packaging & Services CSI score was 92.8, and Global Industrial Packaging CSI score was 95.6, which exceeded Greif’s aspirational target of 95.0. We thank our customers for their continued feedback which is critical to helping us achieve our vision to be the best performing customer service company in the world.

Recently, Greif attended Interpack, a premier global packaging trade show in Dusseldorf, Germany. During the exhibition Greif collaborated with many of our customers using our Interactive Green Tool, which helps our customers make more informed, data-driven and sustainable decisions related to their packaging products. Collaborative and sustainability-linked partnerships with our customers help Protect our Future and Create Thriving Communities for the broader global communities in which our products are used.

Greif is also dedicated to Creating Thriving Communities for our world-class global colleagues. During the quarter, the Company completed its 6th annual Colleague Engagement Survey administered by Gallup. Based on feedback received from this survey, the Company’s overall engagement score increased, and the Company is again recognized within the top quartile of all manufacturing companies, which highlights the extraordinary commitment of our diverse, talented and engaged colleagues.

In addition, at the end of May 2023, Greif was named to Newsweek’s first-ever Top 100 Global Most Loved Workplaces list. Greif has been consistently ranked as a Top 100 US Most Loved Workplace and is now excited that Newsweek has expanded their scope to the global platform, providing Greif the opportunity to showcase our exemplary dedication to our colleagues.

During the quarter, we published our 14th Annual Sustainability Report. This report highlights our goals and milestones achieved related to all elements of our sustainability journey: Delivering Superior Customer Experience; Reducing Our Footprint, Addressing Risk; Valuing Our People; Advancing Circular Economy; and Financial Performance & Profitable Growth. We encourage engagement and feedback from our investor community as we seek to continually progress our Build to Last mission of Protecting Our Future. More information can be found at

In addition to the financial strength demonstrated through the Q2 2023 overall financial results, in May we signed a new $300.0 million senior secured credit agreement (the “2023 Credit Agreement”) with a syndicate of banks from the Farm Credit System led by CoBank. The proceeds of this 2023 Credit Agreement were used to refinance an equivalent amount of outstanding borrowings on our revolver, freeing up immediate capacity on our revolver to allow for further inorganic and organic growth aligned to our Build to Last strategy. 

Segment Results (all results compared to the second quarter of 2022 unless otherwise noted)

Net sales are impacted mainly by the volume of primary products(7) sold, selling prices, product mix and the impact of changes in foreign currencies against the U.S. Dollar. The table below shows the percentage impact of each of these items on net sales for our primary products for the second quarter of 2023 as compared to the prior year quarter for the business segments with manufacturing operations. Net sales from Lee Container and Centurion’s primary products are not included in the table below, but will be included in the Global Industrial Packaging segment starting in the first quarter and second quarter of fiscal 2024 respectively.

Global Industrial Packaging

Net sales decreased by $223.5 million to $748.2 million primarily due to lower volumes and lower average selling prices. Additionally, there was approximately $59.5 million of prior year net sales attributable to the Flexible Products & Services business, which was sold on March 31, 2022.

Gross profit decreased by $7.4 million to $177.9 million. The decrease in gross profit was primarily due to the same factors that impacted net sales, partially offset by lower raw material, transportation and manufacturing costs.

Operating profit increased by $3.3 million to $111.3 million primarily due to a $9.8 million gain recognized on our previously held interest in Centurion and to gain on disposal of properties, plants and equipment, partially offset by the same factors that impacted gross profit. Additionally, there was a $6.5 million offset due to prior year operating profit attributable to the Flexible Products & Services business. Adjusted EBITDA decreased by $9.7 million to $121.2 million primarily due to the same factors that impacted gross profit.

Paper Packaging & Services

Net sales decreased by $134.5 million to $554.8 million primarily due to lower volumes.

Gross profit decreased by $19.4 million to $131.4 million. The decrease in gross profit was primarily due to the same factors that impacted net sales, partially offset by lower raw material, transportation and manufacturing costs.

Operating profit decreased by $12.5 million to $67.6 million primarily due to the same factors that impacted gross profit, partially offset by lower SG&A expenses. Adjusted EBITDA decreased by $12.5 million to $104.9 million primarily due to the same factors that impacted operating profit.

Tax Summary

During the second quarter, we recorded an income tax rate of 25.3 percent and a tax rate excluding the impact of adjustments of 27.0 percent. Note that the application of FIN 18 frequently causes fluctuations in our quarterly effective tax rates. For fiscal 2023, we expect our tax rate and our tax rate excluding adjustments to be towards the high-end of our 23.0 to 27.0 percent range.

Dividend Summary

On June 5, 2023, the Board of Directors declared quarterly cash dividends of $0.50 per share of Class A Common Stock and $0.75 per share of Class B Common Stock. Dividends are payable on July 1, 2023, to stockholders of record at the close of business on June 19, 2023.

For the full second quarter results, click here.

(1)Adjustments that are excluded from net income before adjustments and from earnings per diluted Class A share before adjustments are restructuring charges, debt extinguishment charges, acquisition and integration related costs, non-cash asset impairment charges, (gain) loss on disposal of properties, plants, equipment and businesses, net.
(2)Adjusted EBITDA is defined as net income, plus interest expense, net, plus debt extinguishment charges, plus income tax expense, plus depreciation, depletion and amortization expense, plus restructuring charges, plus acquisition and integration related costs, plus non-cash asset impairment charges, plus (gain) loss on disposal of properties, plants, equipment and businesses, net.
(3)Adjusted free cash flow is defined as net cash provided by operating activities, less cash paid for purchases of properties, plants and equipment, plus cash paid for acquisition and integration related costs, plus cash paid for integration related Enterprise Resource Planning (ERP) systems and equipment, plus cash paid for debt issuance costs, plus cash paid for taxes related to Tama, Iowa mill divestment.
(4)Net debt is defined as total debt less cash and cash equivalents.
(5)Leverage ratio for the periods indicated is defined as net debt divided by trailing twelve month EBITDA, each as calculated under the terms of the Company’s Second Amended and Restated Credit Agreement dated as of March 1, 2022, filed as Exhibit 10.1 to the Company’s Quarterly Report on Form 10-Q for the fiscal quarter ended January 31, 2022  (the “2022 Credit Agreement”). 
(6)Customer satisfaction index (CSI) tracks a variety of internal metrics designed to enhance the customer experience in dealing with Greif.
(7)Primary products are manufactured steel, plastic and fibre drums; new and reconditioned intermediate bulk containers; linerboard, containerboard, corrugated sheets and corrugated containers; and boxboard and tube and core products.

About Greif

Greif is a global leader in industrial packaging products and services and is pursuing its vision: to be the best performing customer service company in the world. The Company produces steel, plastic and fibre drums, intermediate bulk containers, reconditioned containers, jerrycans and other small plastics, containerboard, uncoated recycled paperboard, coated recycled paperboard, tubes and cores and a diverse mix of specialty products. The Company also manufactures packaging accessories and provides filling, packaging and other services for a wide range of industries. In addition, Greif manages timber properties in the southeastern United States. The Company is strategically positioned in over 35 countries to serve global as well as regional customers. Additional information is on the Company’s website at


Matt Leahy – Vice President, Corporate Development & Investor Relations – – (740) 549-6158

Source: Greif, Inc.