Earnings call transcript Q3 2023

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Operator

Good day, and thank you for standing by. Welcome to the Greif Third Quarter 2023 Earnings Conference Call [Operator Instructions]. Please be advised that today's conference is being recorded.

And I would now like to hand the conference over to your speaker today, Mr. Matt Leahy. Mr. ahead. go please Leahy,

Matt Leahy

I'm morning, Greif's Conference to Leahy, Call. Corporate Officer; Relations. President good President Rosgaard, Fiscal Chief Financial and Greif's Third Officer. XXXX of Executive And Investor and Earnings This Larry Development by everyone. and Ole Greif's Greif's Hilsheimer, Welcome and Quarter Vice joined Chief Thanks, is Matt

from regarding to We discussing basis. we fair disclosure, regulations In accordance will take with with because information questions nonpublic Please important at ask material the issues questions you end are individual consider prohibited of Slide today's call. an you please on X. turn

a beliefs will make related As those could forward-looking and events. call, future from expectations results Actual plans, during reminder, to differ today's statements we materially involving discussed.

non-GAAP most to and on Difficulty] to certain financial Slide now measures presentation. [Technical over Additionally, measures directly appendix GAAP turn we the of today's I Ole X. the And be reconciliation comparable presentation will the referencing

Ole Rosgaard

good everyone. Matt, Thanks, morning, and

Our strong our global headwinds. Greif team quarter historic despite continuation performance and volume in of third fiscal a executed very well posted

teams doing the serve Build of strategy work in are drive results more and manage and to difficult better not the leaning our environment Our to this prouder I we Last business could on and improve to are be customers.

the building model our and the the manage XX% in is of testament commitment nine margins performance a while conversion resilience first with above our performance XXXX business targeted our future. Our the to and months present flow strong EBITDA of well free cash and to both growing

is accountability production mission Stock appreciation, all to We our A creating and through economic of discount across Plan, means stakeholders. the commitment of culture colleagues colleagues will from organization. Purchase and of acquire launched colleagues our come. a a want Colleague our the on in Build look fellow devoted In at the Greif the inclusion this to corporate our in external that down proud program a our third program to to participate the colleagues drive as the the prices. of Class quarter, to program owners forward we enables to to our to missions for Before share power to a market excellence further cultivating and recognition provide shares communities internal an months and two our I for this believe table and strategy, greater covering to thriving Last update welcome our key ownership to company to benefits results, value I'm in of expanding creation. in years exciting And

On our formally mission we to deliver in of each customers customer on legendary regular index, mechanism satisfaction feedback to value. latest our service customer ability to quality, product quarter, we and with of our deliver the receive terms from a customer overall satisfaction service, present Greif results used

Our XX of XXX. aspirational benchmark success is of out a score of

global our steadfast the customers the that quarter, just consolidated an our score in challenges shy commitment This customers facing markets. was is evident. result given goal of Greif's our are exceptional to and XX.X,

you build bad, day. excellence on and in existing you on in We good support will provide our times service every can deliver you to and and and quality and relationships with us count

as the challenging period relentless is value this a to during customer excellent focus core who and of are and dedication on we Our our score provide. service we organization CSI is an reminder

X, turn focus Slide to shift Now results to back things off. it financial to kick to where like over on Larry I'd I'll

Larry Hilsheimer

and morning, everyone. good Thanks, Ole,

that time, the in results now December and initial stock operating many guidance guidance to EBITDA of relative the our At run see how, back environment performance demand I'll company level to to 'XX view $XXX had of we and free QX softness our take and our million given relative of of XXXX been this in a is we the $XXX earnings financial $XXX Greif's we we year, had frank in call, with on range started where have provided in our cash for be million from step want and our quarter at fiscal to discussed Given to million flow. overall uncertainty, briefly of single wide arrive 'XX $XXX I robust markets to end just in XXXX. scenario to everyone. analysis million

XXth in not indicative of year-to-date economic we an the a into an broad extended for If imply PPS our considered across we row, are PMIs another would we tracking to a not year-to-date. down month XX doing remained and manufacturing what high the wrong. recession, time mid that's be assumption not we sure heavily is. below were that the volumes felt both I'm GIP Clearly, in in recession. While teens cycle, not headed was recession, industrial did that then and December global initial weight slow industrial at of while so may we possibility demand as that And

June to Day is cash of showing Another the our $XXX million and in EBITDA of $XXX outlined slide $XXX we million relevant comparison flow. downside to million recessionary risk to year in last at free scenario Investor $XXX million

actual volumes our Ole, downside from actual recession versus M&A. flow current are Number quadruple scenario. teams pricing try home I free executing. I down versus steel lift prices well midpoint that partial heartfelt X% recession above guidance down XX%; this for a points assumed to our illustrate one, of XX% million but mind few down to summarize, share to actual XX% yet, And with thanks scenario, to take about comparing and hammer scenario level X% down XX% assumed volumes how tracking and the really containerboard steel are July; downside also are scenario their over and year. that over all down over keep are we an these of doing, investors our time only they A the and the down in consider detailed drum provided $XXX And that current for I'd points about contemplates assumed in actual nearly Greif QX; recession down match EBITDA is performance cash me commitment versus against declines QX well our assumed is boast thanks our team's double our like a overall commendable recession want the to down my our mill of scenario recession as how drum results. to colleagues volumes dedication we index letting for To versus our X%. the downside through environment: XX% mill [steel] prices current QX down the volumes

Ole Rosgaard

and said. Thanks, well Larry

As $XX million, Larry million very quarter adjusted shy short only we of EBITDA comparative less than again just XXXX strong strong mentioned, period. previous the of and million reported of our $XXX.X $X

Our very free XX% the cash or which strong volumes, was on equal generation lower. less to of reported XXXX, also were but extraordinary $XXX.X million, QX at nearly more

a of is XX%. my ahead mentioned XX%, As opening long well of in target which figure term of our remarks, conversion that flow rate than cash over represents free more

performance and and drive commercial we to Our truly all working disciplined approach excellence spanning the business. managing sourcing our operational are piano, with to supply initiatives playing and capital as chain are improvements across driving to automation from entire and costs efforts, this

now step-up deliver B shareholders. balance strength Class and our shares, free to A another allocation our annual announced generation at flow excited our available $X.XX has $X.XX widened our sheet of cash continue and with quarterly growing reoccurring we to and also We The respectively. dividend are in for total cash dividends capital and our opportunities, to

another announce to excited Greif addition I'm Lastly, portfolio. to the

which ColePak, slides. supplier this business truly number ownership bulk As week, more of in like Slide two past the America. discuss ColePak specialty an agreement signed we partitions in and on I'd please. is acquire a as to North to X, paper converting the XX% special following

high content a and two For those in partitions separating partition stable to and and located expected the contribute a site a million per business $XX bottles. year. predominantly such wine Valley. growing business beverage containerboard corrugated of both of manufactures have global of as ColePak food million boxes to included and and wide serve margin markets. portfolio is the in EBITDA the divider Avon in Avon, a is $XX the Fairfield, This as Ohio to immediately to and is range is bottling glass synergies facilities California, They commonly before accretive from URB serves method strategically unfamiliar, Greif fragile end which a in

converting network consumes but team fit XX,XXX to into integration management paper our not is of financials, the relative business. inorganic While this the and several incremental ColePak's opportunities PPS adding business ColePak's grow downstream per small least, niche cultural is top Greif. scale tons and excellent to global stand-alone quickly Last organic of our network. an certainly portfolio, year approximately On favorable to remain further growth

set have business how the years share We and of known on and done family colleagues to care and of take Cole values serve with for customers. a

with in pro leverage shape great we impact our to ColePak this after excited grow remains below saying in venture and of the We midpoint our sheet the are new conclude the I'll even this business ratio of together. forma acquisition, that balance by partner and sit range. target

accretive Our M&A the pipeline remains future. continue targets deploying intend towards more in capital to robust value and we

to results. like into gears and deeper shift Now a segment our take I'd dive

to turn X. Slide please So

in markets, benefits the lift value again, XX% with earlier business APAC. result actions XX% GIP despite in an the nearly gross this of lower led nearly EBITDA our million $XX adjusted in philosophy flat profit the the year-over-year and lower taken revenues. to excellent year-over-year of volume adherence headwinds year and Our to volume strict nearly costs produced input over cost-out year-over-year Once our despite an and substantially of Americas EMEA

third demand not to Through APAC On our second products, I have a as and focus the GIP slightly quarter tons Packaging's North compared million Paper both our in Please their X. across commend GIP the team based across August, the of OCC team over sight geographies due environment, in a upward and our operations. a have mid-double of into third with day sales to third mills. in We quarter, prior compression playbook turn business nearly we compared margin declines line products our EBITDA and this quarter with manage weakness and for customer a primarily any the Sequentially, LatAm reference XX% basis. and took approximately and quarter. down we quarter economic elimination, for all with year. inflections and utilized on in year converting mirrored day X.X% down value year the continued led we'll as our side, businesses volume and digits notable Slide softness The across and dollars our our quarter global declined demand mill to volume year-over-year, in prior GIP resin converting quarter rising per volume low demand in closely the XXXX. and global and system EMEA cost America. to per to still primary our to margin downtime flat faced steel third performance cost with exemplary we showed resulting $XXX costs same GIP EBITDA combined business the through as on the PPS to in said, during both continue EBITDA healthy That volume do XX,XXX service. throughout

these Our business proud is against X. dedication the results turn I'm during of multiple times. headwinds, Slide managing over now I challenging to on Larry team will presentation and PPS and well very the continued their

Larry Hilsheimer

Ole. you, Thank

environment. in our lower points lower heartfelt in delivering Sales basis cash our adjusted a over out impressive, free year-over-year, department within conversion. prepared due team this, decreased and to well dollars thanks volumes higher of expansion. our to than primarily significantly declined is substantially were the Despite $XXX of shareholders less executing each Ole million, flow year-over-year Cash the an million Most QX Back margin goes year. to results, $XX on financials. It earlier performance. $X and approximately EBITDA steel enterprise-wide million and however, impact was leading these only for costs. to flow customers flow and cash I free XXX down As demand my remarks, mentioned historically effort to this for challenging our deliver Greif is

missed Just to another million rates and it of last year To higher history cash remind everyone, only was down M&A activity, of by $XX higher interest sales. the it the QX related and quarter that's $XXX we way, year-over-year, highest this million higher $X our with CapEx nearly quarter flow in of recent truly third to is Volume lower costs million in our our outstanding. average put company month annual on free years. XXXX a more cash generated and is recognized On still cash that at our trailing once double was XX free the flow market. basis, $XXX of XXXX we fact miles of do than between believe cash any measure, million tracking it the flow output where is adjusted and the fully company is not this that, fiscal ahead by XX%

We up have flow to value dynamic creation through and a shareholders. on has possibilities and of the the lot elevated bar M&A raised cash performance cash returning further for opened

And cap Slide to downstream in our guidance. now the touch of resin system acquisition allocation acquisition another on paper his I'd same remarks. be at taking to recent pursuing GIP. Ole capital based We're discussed on to on we're Investor our other ColePak like discussing commitment our before our pleased time, X priorities step grow Day integration and in the

our pipeline over last M&A robust. nine We our million is and not work but months, have over done remains spent the $XXX on

balance various actionable and still strong to We a fund opportunities sufficient continue to maintain expect sheet. cash generating

to our dividend, year again ago. to a we inorganic over pursuing to excited growth, we raising commitment investors addition In I'm fulfilling made are announce a

longer yield coming one long leading, our industry. our most dividend the X%, to By of for are reaffirming by our While overdue the our year cash deliver dividend compelling we may commitment back industry be thanks in no raising directly in is it shareholders. our to still stock some price, to offerings dividend our appreciation

commensurate business to fairly we at us. rate we we an grow are recall, authorization buyback any may dividend a completed their expect last you the executing finally, ensure in for quarter, execute as As are grows, shareholders million further repurchase our compensated program. open on And our our to for commitment current retain X.X $XXX million coming we and share programs, repurchases opportunistically shares years. while And not to

revised discussing Slide XX. that, on With I'd our close by to like guidance

see, As free unchanged. guidance can our remains cash the flow you midpoint for of EBITDA and

side we and $XXX now $XX Given are full by of million expect million sight and and EBITDA year million full $XXX between the range year million cash the each to full land million. results, year line flow $XXX between closer to free tightening on $XXX and

quarter Our financial expectations. our overall third met results largely

Volumes plan reasons defer. better drivers but the were in individual margins previously the were all mentioned. However, below substrates, nearly for

of quarters, end assumes prior volumes through our improvement the current the with on no As guidance year. forward

views Additionally, on early our we our will plan to in fiscal in QX 'XX December. share call

macroeconomic to Greif's We challenges the our XXX everyone surpassed the guidance that another we financial finish with year expect the to of quarter best a face. I'd despite like year of implies the second strong performance in only history remind persistent record midpoint XXXX. performance range by year in

confident expect on back continue are that results and Slide set we've these make a Build deliver journey. for We we to bar Ole, our close hand will Last to on progress we to to performance I'll it future that exceptional new XX. as you

Ole Rosgaard

Larry. Thanks,

improve position extremely in As their of the Larry that the considering history, just often and guidance mentioned, are in of we the and that and of our how passion to companies facing. colleagues daily grits Built year perseverance year the expectation times best excellence. is great we level headwinds see second Greif's at and our we in work are making reflects every Great decision demonstrate to XXX have in business. be proud dedication our it difficulty on that I and perseverance, of through

your on our Operator, strategy. well making this the we long whenever excited that demand are business to line in please questions. in for meantime, open are progress rebound building interest positioned you We We comes. for the and thank Greif. to a continue And term

Operator

And Stifel. question from will Hoffman Instructions] [Operator come Michael first our of

Michael Hoffman

second XQ into track a notes, in I'm I going I'm the had to in the seeing was was that to around accept XQ, in you have and wrong. million wrong, on finished we of I to of Paris forward then When modestly in in EBITDA sort notes, my week look midpoint. London. couple cadence I my if I hit hundred XQ half the and improve the next

the around that XXX cost, originally. implied XXX, outlook You interpretation my like the -- repeated is was fourth that your something again, pretty million of exceptional $XXX what versus down being for performance healthy. low EBITDA quarter How has the beat XQ, my given

Larry Hilsheimer

correct. volume normally though, expected side, we ag the ended than you're Michael, the was more and perform better don't mean see Yes, less up. And picking favorable we up on margin degradation that seen do. we've volume being I we QX than

shifted So with bit. that trend, it a things just

as is anticipated we it well, had quarter, had the will third also bit refund came occur fourth might have we Latin August But -- quarter would noncash actually surprised Obviously, that a seen We and that have we up in those a some in items. cash yet. a really tax America $X volumes not is in which really little is that flow but later, item item into We anticipated like us bit. hope two impacted pick it's that the million. a

Michael Hoffman

before end And paints sort that and GIPs, about then point, to coatings sort major we've of talked markets and and of lubricants. chemical

message it's worse? just some we are better, So those it's a not of not any has or hearing got worse that

Ole Rosgaard

it's us Our next telling that but customers improvements worse, they getting quarters. that not us two any also the over expect are don't they're telling

what be remote quarter an any of we we in they will see hear, XXXX the even from So second before improvements. chance of

hear So customers. that's we what our from

Michael Hoffman

I cover that says And improving see that they're my then starting things on and into to recycle this demand. coverage OCC that all PPS,

the So clearing to inventory is a tunnel this and -- and finished there light all improve? starts of the demand at end the goods of

Ole Rosgaard

then in orders couple saw that last the they off. for fell of where part times mill the word, just things waste what's a of we mills. saw next some recycled demand in a for really week, spike think is new capacity we or month -- created but week, opening over little side on I the back OCC Outside of companies Mike, a bit the a of to related so

would of hearing any and seen that point. indicate our gives that real in inflection customers any So anything sustained we're lift, anything we indications haven't them paper from the a not solid business

Michael Hoffman

like sounds hit you feel have it you like But a bottom.

hit you're If you'll bottom. momentary spikes, a probably getting

Ole Rosgaard

Yes, good, second and I fiscal think we the I hope this missed call. but half so. of that, mean, be we thought year would that we

really So I'm crystalball. not good with my

Michael Hoffman

last not I Cole? is of for and both. one And you XXX% me Yes, own then one

Ole Rosgaard

Matt of development let business this… a of deal I'll Cole maybe help with relationship with a that, on because is the us leads about that they bit them, because to This long growth But dealt opportunities. because little our talk approached family Matt efforts and our

Matt Leahy

reason is make that Part sense XXX% that substantial see have aligned is the have ahead, sure the we is not own to in mill incentives to the that Michael, and of to partnership, business opportunity as the we do the So it. to to grow growth Cole's it grow we believe opportunities real there and want they market but to capacity makes need because together. reason they substantially, the they try

We're about end growth the of creation sense rationale. partnership an that, strategic into going the of forward that and adding for that I value from to that's ownership market us perspective, makes So XX% a and stake the excited margin both maximize from but perspective, over think time. portfolio also business

Ole Rosgaard

they're good they're in to respected word they growth. of participate their is in thing, industry people, they're the Ohio people, And of kind the because and their of sort highly bond want

Operator

question from the next will Our come Ghansham line of Panjabi of Instructions] Baird. [Operator

Ghansham Panjabi

prices destocking, end just wondering we raw weakness GIP, to incremental But how as did destocking in versus would to some accelerate decline of at that And where because phase. your know separate the customers, of they are it's I'm to just volume started kind material you any market level? for the I decline in that and asking difficult start on customer very disaggregate.

Ole Rosgaard

an just the destocking that but really there's if what we end, of it's see low believe come difficult that's a really markets, we But is to think an to end. helpful. has extremely don't whether in now to see We manifestation come it's demand

Ghansham Panjabi

headwinds volume that GIP, should eventually cost you've think And we in are which there And in context then very keep asking reversal scenario? cited. should How as declines about just volumes recover? incrementals in because terms notable we in of of obviously any big the improvement the been in the I'm margin mind has

Ole Rosgaard

taken cost Well, obviously, lot of side, a on that we've out.

done Some We've it is consolidations. of structural. rooftop

also business demand to We that goes to are able really, in down. rapidly flex as really

any room demand you returns, demand we goes say, can have to X% we have would without X% So our obviously to up -- let's if if shifts. increases. that, cost to add capacity, further But increase than

see line a available up but will increased in taken you goes with lot costs we've So structural. demand, is of out cost the

Ghansham Panjabi

And then just one final one ColePak. on

that number, very obviously, in et could can Anything sales outcomes obviously, in fiscal early finalize the so as You I us our cost out year the we of I any big there, that. known as also just 'XX? estimates contribution price cetera. year it variances repeat to broke of please the some if then relates 'XX, mind through range you paper? the And give you flow fiscal complexity, mean, But for should have that, EBITDA missed If you from based declines there. on keep macro savings, modeling we from share ColePak, could you

Matt Leahy

basis. number, revenue run then million. not a give $XX didn't that that revenue for $XX right to you year more not on margins but we give mills million, full the us can benefits around going the incremental ColePak, year. from EBITDA of We're about build include the tons. rate And should about to that absorbing now is think next instructive does run as kind you a but EBITDA rate model And go be On that --

if we of I thinking from M&A cost I the don't have the components, in Lee, terms portion a then an from contribution really can that. and months don't add other of next this of year asking elements, you other Centurion were about the And next obviously, know, On think you couple then year. about a a portion know when you for from basis.

Larry Hilsheimer

for the between year. million and that Tama M&A the lease each look we're of incremental probably have full provided $XX for $XX you a $XX things Centurion million I ColePak on that million Yes, $XX million. this revenue would Lee, those, and million at year on just side, maybe net Centurion, take ColePak two if on up on of We you had the numbers say basis. we out on $XX And

maybe $XX structural the consolidation significant next over number. out we There's time, cost rooftop some taken have piece. takeout million number a you'd this year, roughly million takeouts, of a lift of And then year, on the haven't permanent million obviously we've $XX On quantified overtime. So kind cost it, $XX call there. of

of Some shift running related. the there's we somewhere that's in permanent But we're million million volume to in of how change think structural $XX $XX business.

Operator

[Operator Instructions] Our next question will come America. from George Staphos of Bank of

George Staphos

seeing why -- Congratulations of it? cover I so sort you on why downstream? talking one matter they're already in wanted to saying I have light in we're the Ole, so they what things common heart not really, questions are hard of performance. many to know of many at that's good your really, customers. the demand gotten and lift was things. lifting a about of for quantify really what When denominator seeing that terms you the you're customers Again, two of the really isn't is lot markets they performance and or there believe to demand But a again,

Ole Rosgaard

don't big out lot and to box when shifted saw things first back I couple what previously that of down, has the spending how discussed our not to closest I lot them, buying they've have I money instead. downtime. people can that's get. retailers on global really that It's all, difficult. they're from particular as of rates, put have they from services But taken economic they really, thing. going consumers So paint means the recently in are articles their a customers, houses, economy the of the buy a of of to suffering plants interest finger they've moving big been of that speak taken out don't a of we they and really on And it's one just my when sort goods terms to in they terms necessarily item, then move

George Staphos

from take said bit than And maybe anything would on away trending side, positive is like, you normally the a to less that? ag you ag little

Ole Rosgaard

What It’s I’ve do use times also and that and their to of of farmers part fertilizer ag less the on managing in what been thing. of told business. is to [indiscernible] sort hardship tend individual is that less just

George Staphos

talk the And what Can expecting have in from question. you about to and you the third might might then benefit Ghansham’s be fiscal back price what steel in fiscal you gotten cost earlier fourth?

So there’s maybe pick back on should an that as ultimately up, into things will of $XX that annualized cost come the take we million away hopefully business basis?

Ole Rosgaard

there a was situation. curve. year-over-year steel on George, better year it on cost rapidly slightly last had because a steel We had basis we decreasing a

So in the for not higher material walk through was we but it had inventory quarter.

$XX and would on million, comes mentioned, As footprint, cost only to differential because will that. that that time aren’t the over fixed new come out that be back number sales get I but back it yes, we with leveraging that building factories to

cost they anything in. on adding back, that depreciation go labor adding other won’t and be will it be So

So lift. margin nice still

George Staphos

volume, stack, in just getting terms a have is on… we to small and I’m ‘XX after that, of of that do what negative make we so we get slice for I sure the margin when after incremental our need kind at

Matt Leahy

the rate same sales to don’t at back important those do. it’s costs come George, mention,

right kind slowly. more They So system But existing Demand in. improve, a so sales now relationship. there’s a lot back come of in right dollars one-to-one back improves, we our shifts. it’s and costs have not capacity lot come of just

not as approval… sales be to but inflection away. the management handle demand but good in But solve in that’d back, incremental can problem we needs more costs come overtime an layering So right

Larry Hilsheimer

Ole Yes, mentioning. that’s was what

have we X%, up go to at X% you dime. a If don’t

up something… XX% ran to you You a go or yet shift have

Ole Rosgaard

And George, just a final comment [Multiple Speakers].

a final on that. Just comment

of not we business. will over value to back volume, take go strategy Just our on

capacity healthy facilities. won't full but capacity, So all say we at, are running our I utilization in

on, We margins plants margins produce add then and in in not not low low products we another take that with make terms will of that's on strategy. shift to our cost business our

George Staphos

about last goal in and hopefully your Ole. been better in a the flow conversion well a little working okay, sense, And tell discount, the terms do performance side a so me No, things 'XX volumes some Is bit no? turn did same not in other employees terms better because then you you're of with are let's that mountain to to program to that theme that realizing stock quarter. on offering a I'll and you're capital, question, to has other buy little in 'XX. the other My compare have 'XX do below XX% is of to over. maybe on ways it that cash or ownership? going your and the there Free on, at incentivize to you and chance have the makes you excellent add of guide a conversion do back above this year, maybe what last get

Larry Hilsheimer

trying if outsized So performance can on our it's see But demand, would -- in working so that And driver company? in that. love be on our our resin business the for respect execute substantially on those cost strategy obviously, the but business. a would our we're in the plants for really mean, so other went XX% We just like to Could around colleagues, from and application of focus. first to us something like in at does above OCC will as employees. also feedback we colleagues. who our board, terms focus what ColePak this where our the had we had we stock keep businesses M&A places our another look, had we worked capital the nice quarter up we really the as and have level, increase in back, steel still we we this that downstream, the impact of is that. I play would all take-up on of XX% good will of drive or they what's for going the things will within around And as goal. that paper our they With don't on had OCC. to comes of approved that flow But probably Obviously, of I it. cash And the demand that, initial to actually presented build. world steel from the in George. into at big we both opportunities is entertain requests goal example, hey, our quarter well. have had that going this end to cost purchase then free conversion. also the have well colleagues be initiatives And chain from be in said, we the and goal on supply from we believe as above We of that better. had we that's the and our emanated other type to you plan going think this us up requests depend two mean, pace our to number on

from growing look we it to forward here. So

George Staphos

of sort employees your what stock, discount the the discussion any would giving about in like too buy -- to there of right? Others you Was kind market are discount a but… like

Larry Hilsheimer

is Yes, XX% pretty programs. which standard discount in these a it's

Operator

Our next come Instructions] [Operator of Fargo. Wells question will Hadi Gabe from

Gabe Hadi

challenging that we've would question? think you this. competitive markets in America Do more or you it's participate, of that and the we believe my something on has different still But come, of activity of seen a ground and lot pricing or is curious, North from sort which manifest competitive covered again, that and more been higher a about like is standpoint, in I'm Europe. question be capital specifically markets in the in mature cost answer first thinking the landscape to a behavior

Larry Hilsheimer

our our one necessarily levered. Yes, I very in capital, GIP primary don't cost is behavior business, of know highly of their would attribute that to obviously, competitive although, we competitors

them, So puts direction. it does put in it the right think pressure but pressure on

good they were much what place where different I a clearly do PE is than the a our model mean to in or relative M&A put it's the in in I strategic that position market. and trying is more play ago out two in seeing thing. really mean, a activities. position we're that's the very to good very, we're three us years puts So

see cost we there. least that could competitive the not anything seeing to So We're of not Gabe. no, favorability what marketplace responsive your to at exactly I But was, would capital, attribute that the their in discern. that's we question

Gabe Hadi

a Well, be how coming and a competitors being down would maybe to would maybe bit out aggressive you demand better. think In little bit just little ask answer a seeing you share. again, about pick for more Are price and the Or environment no intuitively kind your like the the keep you're fact value? business on is up that? results, it based and -- seems able that of question to

Ole Rosgaard

you give can I Gabe, that. a crystal yes clear to

Gabe Hadi

some is not compelling deploying there becomes then you're be The guess M&A to out at standpoint? math repurchase more like a going one Is statement point is which full. maybe on pipeline guess, doing decision strong sounds just I you like I made from mathematical capital still And the or behind pretty it, last that one. side it Appreciating M&A. binary some a, pretty that there's a a share but that return than

Larry Hilsheimer

Yes, it guess, because compelling along shares deploy that start we phenomenally I to would undervalued. continue binary. found in if become it's shares buying capital more our objectives we to attractive think then are could don't not we M&A back believe I our strategic

I the think the deals got go then opportunities, we've synergies talked path. continue we the we'll returns those this. of had we ColePak to I the our to type times -- at deals forecast that And multiples are are after are doing, stupid about mean that low. M&A price X we remember extent will But quite said, from that that X. Matt down and I get don't I is integration that compelling. mean

flow for next that conversion high do lot that will well. these the are stuff mutually those cash said, do long a be we the that, we high doing not repurchase. before we we and at other doing of are can if repurchase then Like we'll a exclusive. margin, some way, opportunistically So multiples, stock kind we'll I as capital of deals stock year But on over like time be go can't if

Gabe Hadi

Last one me. a that past elevated has two the George working little bit. was years. CapEx for over been I pushing know capital

that, so Riverville some Virginia. At the the investments think a is mill -- or that the read give on past over from you some can guys I in CapEx year? Larry, down that $XXX from next have in you you maybe something be XXX seeing year, in range that enough were opportunities the might this I are are of made we least expecting organically side, or articles that ballpark you it's to at where where pipeline week CapEx us million a $XXX of to you planned million or budgeting standpoint like

Larry Hilsheimer

last think the years the I would continue running been I something, we've couple model in. levels to of or

we I going be to substantive digitizing returns digitization. friendly. much there's our whole think us and we've more that customer effort opportunities, becoming mean, got more I around believe from including

So in for we've will believe got us. capital that the opportunity we to deploy well areas return

I is purposes. So good modeling that think level for your

Operator

Hoffman follow-up question [Operator Instructions] of is a Our Michael E. from next Stifel.

Michael Hoffman

yes, acting The just want or are to I customers the answer. being badly? disciplined yes, being the or one make yes, understood unequivocal the sure I competitors -- they're the is they're

Larry Hilsheimer

it I call they and -- don't badly, you is think being I the whether question but the yes. is, they answer know are acting super competitive, are

Michael Hoffman

But not irrational. If they -- otherwise…

Larry Hilsheimer

not being got number the answer because no, chase going our totally as the volume. broad They're to somebody value the in customers, as treating the customer But well customers some you've customer responsive of doing getting irrational going do is some many prices the got wolf it they're in a world, we and on lone always not the there where when mean the for value. irrational. Like our We've service across world acting base, and always irrational. not said, to to is something there's cases as be I best somewhere being Michael. focus do we're and paid that out in as we've going really at and we're delivering plants

chase we said earlier, don't I volume. to As need

Michael Hoffman

you results to the that, moment improve, volume read there's price But other producing. the industries. No, seen starts so back I do off through this action. to it when the of that, right of snap get applaud you're as I've is other you they across a around And the kind potential.

Larry Hilsheimer

to We would that. see love

Operator

Matt I'm closing remarks. questions back seeing would turn the the further no And like now to to I conference in for queue. Leahy

Matt Leahy

you, a for today. Thank have you wonderful hope day. everyone, joining I

Operator

today's conference concludes all you for call. Thank This participating.

a have You day. disconnect, now may pleasant and

Greif (GEF) 31 Aug 232023 Q3 Earnings call transcript