Company: GEF
Filing Date: 2025-02-27
Form Type: 10-Q
Source: 0000043920-25-000009
Chunk: 83

Company: GREIF, INC
Filing Date: 2025-02-27
Form: 10-Q
Item: Part I, Item 8
Chunk 83
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 We also expect prices for old corrugated containers and other direct materials, as well as prices for transportation, labor and utilities, to remain relatively stable through the remainder of the year.

Segment Review

Key factors influencing profitability for our segments include:

•Selling prices, product mix, customer demand, and sales volumes;

•Raw material costs, primarily steel, resin, containerboard, old corrugated containers and used industrial packaging for reconditioning;

•Energy and transportation costs;

•Benefits from executing the Greif Business System 2.0;

•Restructuring charges;

•Acquisition of businesses and facilities;

•Divestiture of businesses and facilities; and

•Impact of foreign currency translation.

Customized Polymer Solutions

Our Customized Polymer Solutions segment offers a comprehensive line of polymer based packaging products, such as plastic drums, rigid intermediate bulk containers and small plastics.

Net sales were $295.1 million for the first quarter of 2025 compared with $228.0 million for the first quarter of 2024. The $67.1 million increase was primarily due to $58.5 million of contributions from recent acquisitions.

Gross profit was $60.6 million for the first quarter of 2025 compared with $44.2 million for the first quarter of 2024. The $16.4 million increase in gross profit was primarily due to the same factors that impacted net sales, partially offset by higher raw material, transportation and manufacturing costs. Gross profit margin was 20.5 percent and 19.4 percent for the first quarter of 2025 and 2024, respectively.

Operating profit was $13.8 million for the first quarter of 2025 compared with operating profit of $11.7 million for the first quarter of 2024. The $2.1 million increase was primarily due to the same factors that impacted gross profit, partially offset by higher SG&A expenses due to recent acquisitions. Adjusted EBITDA was $39.5 million for the first quarter of 2025 compared with $25.8 million for the first quarter of 2024. The $13.7 million increase in Adjusted EBITDA was primarily due to the same factors that impacted gross profit.

Durable Metal Solutions

Our Durable Metal Solutions segment produces and sells metal-based packaging products, including a wide variety of steel drums.

Net sales were $342.2 million for the first quarter of 2025 compared with $370.5 million for the first quarter of 202