Company: GEF
Filing Date: 2025-06-05
Form Type: 10-Q
Source: 0000043920-25-000025
Chunk: 109

Company: GREIF, INC
Filing Date: 2025-06-05
Form: 10-Q
Item: Part I, Item 8
Chunk 109
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 due to a significant one-time discrete tax benefit in 2024 from recognizing deferred tax assets related to the onshoring of certain intangible property.

LIQUIDITY AND CAPITAL RESOURCES

Our primary sources of liquidity are operating cash flows and borrowings under our senior secured credit facilities and proceeds from our trade accounts receivable credit facilities. We use these sources to fund our working capital needs, capital expenditures, cash dividends, debt repayment, and acquisitions. We anticipate continuing to fund these items in a like manner. We currently expect that operating cash flows, borrowings under our senior secured credit facilities, and proceeds from our trade accounts receivable credit facilities will be sufficient to fund our anticipated working capital, capital expenditures, cash dividends, debt repayment, potential acquisitions of businesses, and other liquidity needs for at least 12 months.

Cash Flow

Six Months Ended April 30, (in millions)20252024Net cash provided by operating activities$105.6 $92.0 Net cash used in investing activities(31.7)(662.6)Net cash (used in) provided by financing activities(53.7)584.9 Effects of exchange rates on cash34.8 0.8 Net increase in cash and cash equivalents55.0 15.1 Cash and cash equivalents at beginning of year197.7 180.9 Cash and cash equivalents at end of period$252.7 $196.0 

Operating Activities

During the first six months of 2025 and 2024, cash used in change in accounts receivable was $(42.7) million and $(65.9) million, respectively. The favorable change in accounts receivable levels was primarily due to increased collection contributed from an increase in net sales.

During the first six months of 2025 and 2024, cash used in change in inventories was $(23.6) million and $(37.5) million, respectively. The favorable change in inventories was primarily due to decrease in raw material prices.

During the first six months of 2025 and 2024, cash provided by change in accounts payable was $3.3 million and $49.1 million, respectively. The unfavorable change in accounts payable levels was primarily due to increase in purchases primarily related to acquisitions and timing of payments.

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Investing Activities

During the first six months of 2025 and 2024, we invested $65.7 million and $96.6 million, respectively, of cash in