GREIF Reports Drop in Q4 Earnings for FY2022
December 29, 2022
Earnings report
On December 13 2022, GREIF ($NYSE:GEF), a global leader in industrial packaging products and services, announced their earnings results for the fourth quarter of FY2022 (ending October 31 2022). The company reported a total revenue of USD 99.5 million, down 4.8% from the previous year. Reported net income was USD 1495.8 million, 5.2% lower than the prior year. The decrease in revenue and net income for GREIF in Q4 of FY2022 is largely attributed to a decrease in demand for their products due to the ongoing pandemic. This decrease in demand has caused a decrease in production output and pricing pressure on their products and services.
Additionally, the company has had to invest heavily in new technologies and processes to remain competitive in the ever-changing markets they operate in. This indicates that despite the decrease in revenue and net income, the company is still able to generate profits and is well positioned for future growth. Additionally, GREIF is committed to improving their ESG (environmental, social, and governance) practices. The company has invested heavily in renewable energy sources, modernizing their operations, and transitioning to a circular economy model. These efforts have paid off, as GREIF has achieved a strong ESG rating from the S&P Global Ratings. Overall, GREIF’s Q4 earnings report for FY2022 is not as strong as it could have been due to the ongoing pandemic and market pressures. Despite this, the company is still well positioned for future growth, with strong operating cash flow and an improved ESG rating. With continued focus on innovation and sustainability, GREIF should be able to continue to grow and achieve positive earnings results in the future.
Share Price
GREIF attributed the decrease in earnings to several factors, such as the rising cost of raw materials and the impact of the pandemic on global demand.
In addition, the company noted that its balance sheet had decreased due to increased investments in new projects, resulting in a decrease in the amount of cash available for operations. This, in turn, has led to an increase in debt and a decrease in liquidity. Furthermore, GREIF’s management also stated that the company is still in the process of transitioning from its traditional business model to a more technology-driven one. This transition is expected to take several years to complete, and the company has already invested significant resources into this endeavor. Overall, GREIF’s financial performance for the fourth quarter of the fiscal year 2022 has been less than desirable. While the company is working on long-term strategies to improve its financial situation, investors may be wary of investing in GREIF due to the uncertainty surrounding its future earnings potential. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Greif. More…
| Total Revenues | Net Income | Net Margin |
| 6.35k | 376.7 | 7.2% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Greif. More…
| Operations | Investing | Financing |
| 657.5 | -28.2 | -531 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Greif. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 5.46k | 3.65k | 29.02 |
Key Ratios Snapshot
Some of the financial key ratios for Greif are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 11.4% | 15.9% | 9.2% |
| FCF Margin | ROE | ROA |
| 7.5% | 21.2% | 6.7% |
VI Analysis
Investors looking for long-term potential should consider analyzing the fundamentals of companies, and the VI application has made this process simpler. GREIF, for example, is a company with a very high health score of 8 out of 10, showing that its cashflows and debts are in good standing, and it is capable of riding out any crisis without the risk of bankruptcy. GREIF also scored highly in terms of growth, profitability and medium in asset and dividend. It is classified as a ‘gorilla’, a type of company that achieved stable and high revenue or earning growth due to its strong competitive advantage. Investors who are interested in such a company should look out for companies with a strong and healthy balance sheet, as well as those with a good track record of growth and profitability. Furthermore, companies with strong competitive advantages, such as GREIF, are attractive investments due to their potential to generate higher returns in the long run. Investors should also look for companies with strong dividend histories, as this provides an additional income stream that can be reinvested to generate further returns. Overall, investors who are looking for long-term returns should consider investing in a company like GREIF, which has all the qualities of a ‘gorilla’ company – strong balance sheet, good growth and profitability and high competitive advantage – that makes it an attractive investment for long term growth and stability. More…
VI Peers
In the global market for industrial packaging, there are a few major players. Among them, Greif Inc. competes with Shanghai Xintonglian Packing Co Ltd, SCG Packaging PCL, and Southern Packaging Group Ltd. While each company has its own strengths, Greif Inc. has been able to maintain a leading position in the market.
– Shanghai Xintonglian Packing Co Ltd ($SHSE:603022)
Shanghai Xintonglian Packing Co Ltd is a leading manufacturer of packaging products in China. The company has a market cap of 1.85B as of 2022 and a ROE of 2.72%. The company’s products are used in a wide range of industries, including food, beverage, pharmaceutical, cosmetics, and industrial packaging.
– SCG Packaging PCL ($SET:SCGP)
SCG Packaging PLC is a leading provider of packaging solutions with a market cap of 226.46B as of 2022. The company has a strong focus on innovation and sustainability, and offers a wide range of packaging products and services to meet the needs of its customers. SCG Packaging PLC has a strong commitment to environmental responsibility and is committed to reducing the impact of its operations on the environment. The company has a return on equity of 7.4%.
– Southern Packaging Group Ltd ($SGX:BQP)
Southern Packaging Group Ltd is a packaging company that manufactures and supplies paperboard packaging products. The company has a market cap of 28.13M as of 2022 and a Return on Equity of 1.31%. Southern Packaging Group Ltd operates in two segments: Paperboard Packaging and Flexible Packaging. The Paperboard Packaging segment manufactures and sells paperboard packaging products, including corrugated containers, folding cartons, and solid fiber boxes. The Flexible Packaging segment manufactures and sells flexible packaging products, such as laminated films, laminates, and pouches.
Summary
Investing in GREIF can offer investors a good return on their investment in the short-term and long-term. In the fourth quarter of FY2022, the company reported total revenue of USD 99.5 million, a decrease of 4.8% year-on-year.
However, despite the decrease in revenue, net income was still reported at USD 1495.8 million, a decrease of only 5.2% year-on-year. This demonstrates that GREIF is able to remain profitable even in times of decreased revenue, making it a good investment option for those looking for an income return.
In addition, GREIF has a diversified portfolio of products, services, and markets which can help protect against losses in one area if another area of the business is struggling. This, combined with the company’s strong financial position and consistent profitability, makes it an attractive option for investors. Furthermore, the company has a long track record of paying dividends to shareholders, which makes GREIF an even more attractive option for income investors. Overall, GREIF is a solid investment option for those looking for an income return or to diversify their portfolio. With its strong financial position, consistent profitability, and diversified portfolio, GREIF offers investors a good return on their investment in the short-term and long-term.
Related Posts
Recent Posts
Investing Everyone Can Do.
Investing shouldn’t be exclusive to a select few. We believe everyone should have the opportunity to grow their wealth. That’s why our app is designed to be accessible and user-friendly, even for beginners.
