Q3 2024 Greif Inc Earnings Call Transcript
Key Points
- Greif Inc (GEF) reported net growth in all regions globally for fiscal Q3, despite choppy individual end markets.
- The company experienced sequential improvements in EMEA, its largest GIP market, for the third straight quarter.
- APAC region showed signs of recovery after significant destocking post-Chinese New Year.
- Greif Inc (GEF) successfully divested Delta Petroleum Company, aiding in debt reduction.
- The company is making excellent progress on its strategic missions and operating model changes, which are expected to drive future growth.
- Current leverage remains high at 3.66x, even though it would be 3.59x pro forma adjusted for the Delta sale proceeds.
- GIP EBITDA margins were down 200 basis points year-over-year due to cost inflation and non-recurring benefits from the previous year.
- PPS margins continued to lag due to partially unrealized paper price increases and significant input cost inflation.
- Volumes, while improving, are still significantly down compared to 2022 levels, indicating a slow recovery.
- The company faces competitive pressures with some market participants pricing at loss-making levels to maintain volume.
Good day. Thank you for standing by. Welcome to the Greif third-quarter 2024 earnings conference call. (Operator Instructions)
Once again, please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Bill Donofrio, Vice President of Investor Relations and Corporate Development.
Thank you and good day, everyone, and welcome to Greif fiscal third-quarter 2024 earnings conference call. During the call today are Chief Executive Officer Ole Rosgaard, who will provide you an update on current business trends as well as the latest updates on our ongoing operating model change, which will be a focal point of our upcoming Investor Day on December 11, our Chief Financial Officer, Larry Hilsheimer, will provide an overview of our third quarter financial results and our fiscal full year guidance.
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