Greif Reports Record Net Sales in Third Quarter 2021

"In addition to strong operating results, we achieved record financial performance, reduced our debt and made meaningful progress towards achieving our targeted leverage ratio." – Pete Watson, President and CEO of Greif.

Sept. 1, 2021 - Greif, Inc., a global leader in industrial packaging products and services, today announced third quarter 2021 results.

Third Quarter Financial Highlights include (all results compared to the third quarter of 2020 unless otherwise noted)⁽¹⁾:

• Record net sales of $1,490.8 million, an increase of $407.8 million compared to net sales of $1,083.0 million.
• Net income of $113.0 million or $1.89 per diluted Class A share increased compared to net income of $20.7 million or $0.35 per diluted Class A share. Net income, excluding the impact of adjustments⁽²⁾, of $115.9 million or $1.93 per diluted Class A share increased compared to net income, excluding the impact of adjustments, of $50.1 million or $0.85 per diluted Class A share.
• Record Adjusted EBITDA⁽³⁾ of $237.8 million, an increase of $78.4 million compared to Adjusted EBITDA of $159.4 million.
• Net cash provided by operating activities decreased by $40.1 million to a source of $94.9 million. Adjusted free cash flow⁽⁴⁾ decreased by $42.5 million to a source of $64.1 million.
• Total debt decreased by $370.0 million to $2,267.6 million. Net debt⁽⁵⁾ decreased by $371.3 million to $2,167.8 million and decreased by $35.2 million sequentially from the second quarter of 2021. The Company's leverage ratio(6) decreased to 2.8x compared to 3.7x.

"The Greif team delivered an exceptional third quarter," said Pete Watson, Greif's President and Chief Executive Officer. "In addition to strong operating results, we achieved record financial performance, reduced our debt and made meaningful progress towards achieving our targeted leverage ratio. While we continue to face significant inflationary conditions, COVID-19 related constraints and labor availability challenges, our underlying end markets are strong and we are executing with discipline to offset challenges and deliver on our commitments. Looking ahead, Greif is well positioned for success as we continue to partner closely with our customers and drive enhanced value creation for our shareholders."

Segment Results (compared to the third quarter of 2020)

Global Industrial Packaging

Net sales increased by $290.0 million to $907.8 million. Net sales excluding foreign currency translation increased by $256.3 million primarily due to higher volumes and higher average sale prices.

Gross profit increased by $70.7 million to $199.4 million. The increase in gross profit was primarily due to the same factors that impacted net sales, partially offset by higher raw material costs and transportation expenses.

Operating profit increased by $75.4 million to $122.0 million. Adjusted EBITDA increased by $61.7 million to $146.2 million primarily due to the same factors that impacted gross profit, as well as higher SG&A expense that was mainly attributable to higher incentive accruals, partially offset by a one-time Brazilian tax recovery of approximately $9.2 million related to taxes paid over the past two decades.

Paper Packaging & Services

Net sales increased by $119.5 million to $578.8 million. Net sales excluding foreign currency translation increased by $118.4 million primarily due to higher volumes and higher published containerboard and boxboard prices.

Gross profit increased by $29.1 million to $118.0 million. The increase in gross profit was primarily due to the same factors that impacted net sales, partially offset by higher old corrugated container and other raw material input costs and higher transportation expenses.

Operating profit increased by $34.2 million to $47.5 million. Adjusted EBITDA increased by $17.9 million to $89.9 million primarily due to the same factors that impacted gross profit, as well as higher SG&A expense that was mainly attributable to higher incentive accruals.

Land Management

Net sales decreased by $1.7 million to $4.2 million.

Operating profit increased by $1.6 million to $3.6 million. Adjusted EBITDA decreased by $1.2 million to $1.7 million.

Greif's complete third quarter 2021 report is available on the company's website: www.greif.com.

Greif (NYSE: GEF, GEF.B) is a global leader in industrial packaging products and services. The company produces steel, plastic and fibre drums, intermediate bulk containers, reconditioned containers, flexible products, containerboard, uncoated recycled paperboard, coated recycled paperboard, tubes and cores and a diverse mix of specialty products. To learn more, visit: www.greif.com.

SOURCE: Greif, Inc.