Company: GEF
Filing Date: 2025-02-27
Form Type: 10-Q
Source: 0000043920-25-000009
Chunk: 82

Company: GREIF, INC
Filing Date: 2025-02-27
Form: 10-Q
Item: Part I, Item 8
Chunk 82
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13.5 $137.0 *includes fiscal year-end change costs and share-based compensation impact of disposals of businesses

Net Sales

Net sales were $1,265.8 million for the first quarter of 2025 compared with $1,205.8 million for the first quarter of 2024. The $60.0 million increase was primarily due to $58.5 million contributions from recent acquisitions. See the “Segment Review” below for additional information on net sales by segment.

Gross Profit

Gross profit was $245.5 million for the first quarter of 2025 compared with $221.6 million for the first quarter of 2024. The $23.9 million increase was primarily due to the same factors that impacted net sales, partially offset by higher raw material, transportation and manufacturing costs. See the “Segment Review” below for additional information on gross profit by segment. Gross profit margin was 19.4 percent and 18.4 percent for the first quarter of 2025 and 2024, respectively.

Selling, General and Administrative Expenses

Selling, general and administrative (“SG&A”) expenses were $167.7 million for the first quarter of 2025 compared with $145.8 million for the first quarter of 2024. The $21.9 million increase was primarily related to recent acquisitions. SG&A expenses were 13.2 percent and 12.1 percent of net sales for the first quarter of 2025 and 2024, respectively.

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Financial Measures

Operating profit was $59.9 million for the first quarter of 2025 compared with $68.9 million for the first quarter of 2024. Net income was $14.4 million for the first quarter of 2025 compared with $74.3 million for the first quarter of 2024. Adjusted EBITDA was $145.1 million for the first quarter of 2025 compared with $137.0 million for the first quarter of 2024. The reasons for the changes in operating profit, net income, and Adjusted EBITDA for each segment are described below in the “Segment Review.”

Trends

Despite slightly improved year-over-year volumes that vary across geographies and product groups, we have not identified and do not anticipate seeing any compelling customer demand inflection on the horizon. We expect prices for steel and resin to increase moderately through the remainder of the year, apart from any potential tariff impact.