Greif, Inc. reported significant financial results for the third quarter and nine months ended July 31, 2024, reflecting both growth in net sales and challenges in profitability. For the three months ended July 31, 2024, net sales reached $1,454.2 million, a 9.3% increase from $1,330.3 million in the same period of 2023. For the nine months, net sales totaled $4,031.0 million, up from $3,910.2 million year-over-year.

Despite the increase in sales, gross profit for the third quarter declined to $290.4 million from $307.0 million in the prior year, resulting in a gross profit margin of 20.0%, down from 23.1%. For the nine-month period, gross profit also decreased to $782.1 million from $870.4 million, reflecting a margin drop from 22.3% to 19.4%. This decline in gross profit was attributed to rising raw material, transportation, and manufacturing costs.

Operating profit for the third quarter improved to $171.0 million, compared to $155.6 million in the same quarter of 2023, while for the nine months, it fell to $338.0 million from $493.1 million. The Global Industrial Packaging segment contributed significantly to this performance, with operating profit increasing to $131.8 million in Q3 2024 from $102.0 million in Q3 2023.

Net income for the third quarter was $93.6 million, slightly down from $96.7 million in the previous year, while for the nine months, net income decreased to $219.9 million from $305.8 million. Basic earnings per share for the third quarter were $1.51, down from $1.57, and for the nine months, it was $3.45 compared to $5.03.

Strategically, Greif completed the acquisition of Ipackchem Group SAS on March 26, 2024, for $582.1 million, enhancing its Global Industrial Packaging segment. Ipackchem generated net sales of $58.3 million in the third quarter. Additionally, the company acquired a 51% interest in ColePak, LLC for $74.6 million in August 2023, and increased its stake in Centurion Container LLC to 80% in March 2023.

The company also faced increased selling, general, and administrative (SG&A) expenses, which rose to $164.0 million in Q3 2024 from $135.7 million in Q3 2023, primarily due to higher compensation and strategic investments.

As of July 31, 2024, Greif's total assets increased to $6,834.9 million from $5,960.8 million as of October 31, 2023, driven by acquisitions and growth in trade accounts receivable and inventory. Long-term debt rose significantly to $2,793.4 million from $2,121.4 million, reflecting the financing of acquisitions and operational needs.

Overall, while Greif, Inc. demonstrated growth in sales and strategic expansion through acquisitions, profitability faced pressures from rising costs and increased operational expenses.