Greif reports Q2 2022 financial results

Delware, Ohio-based packaging producer Greif has announced its second-quarter 2022 financial results, reporting a strong performance "driven by disciplined pricing action and cost management despite a challenging inflationary environment."

The company reports a net income of $125.1 million, or $2.09 per diluted Class A share, compared with a net income of $149.8 million, or $2.51 per diluted share, in the second quarter of 2021, noting that last year's results included a one-time $95.7 million gain from the sale of approximately 69,200 acres of timberlands in southwest Alabama. Net income, excluding the impact of adjustments, of $144.9 million increased compared with with $67.3 million in 2021.

"Our second-quarter results are a testament to our team's continued execution and customer service focus in overcoming significant ongoing headwinds related to inflation, supply chain and the pandemic to produce another quarter of record results," Greif President and CEO Ole Rosgaard said during an earnings call. "This level of execution is exemplary of the 'Build to Last' strategy in action."

Greif reports an adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) of $251 million, an increase of $74.4 million compared with an adjusted EBITDA of $176.6 million in the second quarter of 2021, and the company's total debt decreased by $211.8 million to $1,991.2 million.

In its paper packaging and services division, Grief says net sales increased by $152.3 million primarily due to higher volumes and higher published containerboard and boxboard prices, which also impacted a gross profit increase of $56.9 million.

The company also announced several strategic actions including the completion of a divestment of its 50-percent interest in the Flexible Products & Services joint venture and applied net cash proceeds of $131.6 million received during the quarter toward repayment of debt.

In its 13th annual sustainability report released alongside its Q2 2022 earnings report, Greif Executive Chairman Peter Watson says since its acquisition of Caraustar Industries in 2019, the company has further elevated its focus on environmental, social and governance (ESG) factors throughout 2021 to enhance its business performance. A leadership council comprised of Greif leaders from around the world focused on accelerating ESG performance in five areas: diversity, equity and inclusion, waste reduction, energy reduction, environmental compliance and circularity and innovation.

The full report can be accessed here.