DELAWARE, Ohio, Feb. 27, 2019 /PRNewswire/ — Greif, Inc. (NYSE: GEF, GEF.B), a world leader in industrial packaging products and services, today announced first quarter 2019 results.
First Quarter Highlights include (all results compared to the first quarter of 2018 unless otherwise noted):
- Net sales decreased by $8.7 million to $897.0 million.
- Gross profit increased by $1.1 million to $172.8 million.
- Net income of $29.7 million or $0.51 per diluted Class A share decreased compared to net income of $56.5 million or $0.96 per diluted Class A share. Net income, excluding the impact of adjustments(1), of $38.3 million or $0.65 per diluted Class A share increased compared to net income, excluding the impact of adjustments, of $28.8 million or $0.49 per diluted Class A share. Adjusted EBITDA(2)increased by $14.2 million to $106.3 million.
- Net cash used in operating activities decreased by $44.1 million to $9.6 million. Adjusted Free Cash Flow(3) increased by $45.9 million to a use of $35.6 million.
- On December 20, 2018, announced an agreement to acquire Caraustar Industries, Inc., and completed the transaction on February 11, 2019.
- Announced Investor Day 2019 will be held on June 26, 2019 in New York City.
“Greif delivered solid financial performance in fiscal first quarter 2019, despite being negatively impacted by the continuation of market softness in discrete regions of our global portfolio,” said Pete Watson, Greif’s President and Chief Executive Officer. “First quarter Adjusted EBITDA rose by roughly 15 percent versus the prior year quarter, while Class A earnings per share, excluding the impact of adjustments, increased by more than 33 percent. Performance was particularly strong in our Paper Packaging & Services segment due to a favorable price/cost environment and solid unit demand, and in our Flexible Products & Services segment due to customer service improvements and solid operating performance.
“On February 11, 2019, Greif completed the acquisition of Caraustar Industries for cash consideration of $1.8 billion. Caraustar is a vertically integrated paper packaging company and operates a business with close operational adjacency to Greif’s existing mill operations. The company is a leader in the production of uncoated recycled paperboard and coated recycled paperboard, operates one of the largest recovered fiber businesses in the U.S and is a leading manufacturer of tube and core products for industrial uses. Caraustar shares our vision of providing industry-leading customer service and has a long tenured domestic blue-chip customer base,” Watson continued.
“The acquisition of Caraustar will drive significant value creation for Greif shareholders by enhancing Greif’s margins and EBITDA and by strengthening and balancing our portfolio. Caraustar’s strong free cash flow, combined with Greif’s existing free cash generation, will permit rapid de-leveraging and enhance our longer term financial flexibility. The business is an excellent cultural fit and we welcome our new 4,000 colleagues to the global Greif team.”
Read the full release on the Investor site of Greif.com.