SON - Greif Q2 Earnings Beat Estimates Sales Increase Y/Y | Benzinga
Greif, Inc. (NYSE: GEF) reported adjusted earnings per share of 82 cents in second-quarter fiscal 2024 (ended Apr 30, 2024), which surpassed the Zacks Consensus Estimate of 77 cents. The bottom line fell 54% year over year. Results were impacted by elevated raw material, transportation and manufacturing costs, and higher SG&A expenses, reflecting increased compensation expenses and costs incurred for strategic investments.
Including one-time items, EPS was 77 cents in the quarter compared with $1.90 in the prior-year quarter.
Operational Update
Sales rose 4.1% year over year to $1.37 billion. The top line surpassed the Zacks Consensus Estimate of $1.31 billion.
The cost of sales rose 10.4% year over year to $1.1 billion. Gross profit amounted to $270 million, down 13.4% from the prior-year quarter. The gross margin came in at 19.7% compared with the prior-year quarter's 23.8%.
Selling, general and administrative (SG&A) expenses were $167 million, up 21.9% year over year. Adjusted EBITDA decreased 25.7% year over year to $170 million in the fiscal second quarter.
Greif, Inc. Price, Consensus and EPS Surprise
Greif, Inc. price-consensus-eps-surprise-chart | Greif, Inc. Quote
Segmental Performance
Sales in the Global Industrial Packaging segment rose 7.6% year over year to $805 million. Our model projected revenues of $748 million for the quarter. The segment's adjusted EBITDA amounted to $118 million compared with the year-ago quarter's $121 million.