- Greif (GEF +1%) reported Q3 net sales growth of 5% Y/Y to $1.01B. Segment sales: Rigid industrial packaging & services $687.6M (+1.9% Y/Y), Paper packaging & services $236M (+14.4% Y/Y); Flexible products & services $82.6M (+11.8% Y/Y) and Land management $5.9M (-18% Y/Y).
- Sales by geography: United States $506M (+9.1% Y/Y), EMEA $372.6M (+3.7% Y/Y) and Asia Pacific & other Americas $133.5M (-3.75% Y/Y).
- Q3 Gross margin improved by 200 bps to 21.5%; operating margin improved by 185 bps to 11.3% and Adj. EBITDA margin improved by 186 bps to 14.5%.
- Adj. EBITDA by segments: Rigid industrial packaging & services $82.8M (-3.5% Y/Y), Paper packaging & services $53.1M (+93.1% Y/Y); Flexible products & services $7.8M (+77.3% Y/Y) and Land management $2.6M (-23.5% Y/Y).
- Q3 Net cash provided by operating activities $51.3M and Adjusted $116.5M compared to $89.6M a year ago.
- Free cash flow of $15.6M and Adjusted of $80.4M, compared to $64.2M a year ago.
- FY18 Outlook: EPS $3.53-3.69 from $3.45-3.70 earlier; Capex $120-140M; FCF $200-220M; SG&A expenses $395-415M; Interest expense $50-55M; other expenses $15-20M and tax rate 28-32%.
- Previously: Greif beats by $0.12, misses on revenue (Aug. 29)