Greif reports strong North American box demand in latest financial results

Several major paper and packaging companies have reported improving box demand in the second half of 2024, and Delaware, Ohio-based Greif Inc. becomes the latest as it released its fourth-quarter and full-year earnings report this week.

While the company’s overall fourth-quarter and full-year net income and adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) were down compared with last year, Greif reports year-over-year improvement in its North American Paper Packaging & Services (PPS) segment driven by strong corrugated demand for bulk box and e-commerce volumes despite mixed uncoated recycled paperboard demand trends.

Fourth-quarter net sales in the PPS segment totaled $624.5 million compared with $581.6 million in the fourth quarter of 2023. Gross profit in the segment essentially is flat year over year, but adjusted EBITDA are down slightly, coming in at $85.3 million in the fourth quarter this year compared with nearly $94 million in the fourth quarter of 2023.

Greif’s fourth-quarter net sales in its Global Industrial Packaging (GIP) segment also increased year over year, coming in at nearly $787 million in the fourth quarter of 2024 compared with $721 million in the same period last year. According to Greif, end markets remained mixed globally but, overall, volumes have been resilient resulting in 3.7 percent volume growth year over year.

Greif’s net income in the fourth quarter decreased 6.5 percent to $63.4 million compared with $67.8 million in the same period last year, and net income for its full fiscal year decreased 27 percent to $262.1 million compared with $359.2 million last year.

The company’s fourth-quarter full-year adjusted EBITDA also decreased year over year. In the fourth quarter, adjusted EBITDA were down 2 percent to $197.6 million compared with $201.6 million last year, and for the full year, they were down nearly 16 percent to $694.2 million.

“I am pleased to report a solid fourth quarter and full year 2024 result, particularly in light of the continuation of this extended period of industrial contraction,” CEO Ole Rosgaard says. “While managing the business for the present, we also made significant strides under our Build to Last strategy towards the future, and our executive team and I look forward to sharing more information at our Investor Day next week. Our investors can expect an interactive and engaging half-day session, and we highly encourage your in-person attendance as we look forward to 2025 and beyond.”

Greif’s Investor Day is Dec. 11, and its full fourth-quarter and fiscal year 2024 earnings report can be found on its website.