DELAWARE, Ohio (February 24, 2021) – Greif, Inc. (NYSE: GEF, GEF.B), a global leader in industrial packaging products and services, today announced first quarter 2021 results.
First Quarter Financial Highlights include (all results compared to the first quarter of 2020 unless otherwise noted):
- Net income of $23.4 million or $0.40 per diluted Class A share decreased compared to net income of $32.3 million or $0.55 per diluted Class A share. Net income, excluding the impact of adjustments(1), of $35.9 million or $0.61 per diluted Class A share decreased compared to net income, excluding the impact of adjustments, of $37.9 million or $0.64 per diluted Class A share. Adjusted EBITDA(2) decreased by $8.9 million to $138.5 million.
- Net cash provided by operating activities decreased by $8.0 million to a source of $11.5 million. Adjusted free cash flow(3) increased by $1.8 million to a use of $11.5 million.
- Total debt decreased by $268.7 million to $2,539.4 million. Net debt(4) decreased by $279.3 million to $2,438.0 million.
Strategic Actions and Announcements
- The Company has made changes to the Rigid Industrial Packaging & Services (“RIPS”) and Flexible Products & Services (“FPS”) operational and financial management practices and procedures and combined the two segments under a single global leadership team. These changes were made to enhance cross-selling and service offerings to customers within similar markets and enhance Greif Business System effectiveness. As a result of these changes, during the first quarter of 2021, the RIPS segment and the FPS segment have been combined into a single reportable segment known as Global Industrial Packaging. Prior to close of business on February 24, 2021 the Company filed a Current Report on Form 8-K with the SEC to furnish certain historical GAAP and non-GAAP financial information in a revised presentation aligned with the Company’s new reportable segment structure described above.
- Awarded an A- Leadership ranking for the third consecutive year by CDP as part of their annual climate change assessment and named to CDP’s 2020 Supplier Engagement Leaderboard, placing Greif in the top 7% of suppliers assessed. Also recognized as one of America’s most responsible companies for the second consecutive year by Newsweek.
Pete Watson, Greif’s President and Chief Executive Officer, commented:
“Greif delivered solid first quarter results despite continued challenging circumstances due to the pandemic. Volumes grew across most of our packaging substrates as many of our key end markets improved and were particularly robust in our corrugated business. In response to strong demand for our products and cost inflation experienced in our key raw materials and transportation services, we are actively implementing price increases across our broad global product portfolio.
Looking ahead, Greif is well positioned to benefit as the world recovers from the pandemic. We remain laser focused on managing those areas within our control to drive value creation.”