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GEF NYSE· Greif Inc
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GEF NYSE· Greif Inc
Earnings report Q4 2023

Greif, Inc. Reports Decrease in Net Sales for Latest Quarter

Segments of revenue

Greif, Inc. reported net sales of $5.22 billion for the latest fiscal year, which represents a decrease compared to the previous year's net sales of $6.35 billion. The company's revenue is derived from various segments, including the sale of products such as industrial packaging, containerboard, and timberland.

Strengths

Despite the decrease in net sales, Greif, Inc. managed to maintain a gross profit margin of 22.0% for the latest fiscal year, which is an improvement compared to the previous year's gross profit margin of 20.2%. This increase in gross profit margin can be attributed to factors such as cost management and lower raw material, transportation, and manufacturing costs. Additionally, the company's operating profit for the latest fiscal year was $605.5 million, indicating a relatively stable financial performance.

Challenges

Greif, Inc. faced challenges in the form of higher selling, general, and administrative (SG&A) expenses, which amounted to $549.1 million for the latest fiscal year, compared to $581.0 million in the previous year. This increase in SG&A expenses can be attributed to incentive compensation expense reduction. Furthermore, the company experienced a decrease in net income, which amounted to $379.1 million for the latest fiscal year, compared to $394.0 million in the previous year.

Noteworthy

It is worth mentioning that Greif, Inc. announced its planned acquisition of Ipackchem Group SAS, a global market leader in the production of high-performance plastic packaging. This acquisition could potentially contribute to the company's future revenue growth and expansion into new markets.

Summary

Greif, Inc. reported a decrease in net sales for the latest fiscal year, primarily due to various factors impacting the company's revenue. However, the company managed to maintain a healthy gross profit margin and stable operating profit. Greif, Inc. faced challenges in the form of higher SG&A expenses and a decrease in net income. The planned acquisition of Ipackchem Group SAS presents an opportunity for future growth and market expansion. Overall, Greif, Inc. demonstrated resilience in its financial performance, but certain challenges need to be addressed to improve profitability.

Source documents

Form 10-K  filed on Dec 18, 2023
124 pages scanned

Reference data

Company financials Q4 revenue 1.31B
Analyst estimates Q4 EPS beat by 19.77%
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