GEF - Earnings call transcript Q3 2024

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Operator

Good day. Thank you for standing by. Welcome to the Greif Third Quarter 2024 Earnings Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded.

I would now like to hand the conference over to your speaker today, Bill D'Onofrio, Vice President of Investor Relations and Corporate Development.

Bill D’Onofrio

day, good and you, everyone. Thank Fiscal Welcome Call. XXXX Conference Quarter to Greif's Earnings Third

During Officer, of as Chief provide our be XX. ongoing the today, call which change, Executive Investor latest on update will Day current operating December model the focal you on Ole upcoming business as trends point well a updates our our an will Rosgaard, on

guidance. Larry our our Financial Officer, Hilsheimer, year third fiscal financial Chief an of will Our overview and quarter results full provide

In Disclosure, we topics prohibited information accordance Fair Slide you consider individual from nonpublic X. regarding with ask questions to an Regulation please material Please on important are with turn basis. because you discussing

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

referencing over Ole Additionally, can metrics GAAP non-GAAP today's presentation. turn we directly and I'll the of financial X. that most the reconciliation appendix to be now certain on presentation will Slide to comparable be in found measures the

Ole Rosgaard

Thank for you, joining us. thank Hello, Bill. you and

colleagues our quarter, XXX I've than visiting on of to of many had a week, time privilege made the more priority spend with past world. the it around our I the plants the X:XX Each teams Over in every hours the our often truly ground, them day. joining meeting. for a.m. the These and me demonstrate early and of that commitment dedication daily remind safety energizing are moments the incredible

a source our executive embodied values, but across and a our also also our privilege. talented thank of such you I just in delivering a and is for outstanding than this that out people of group live I'm have alongside quarter. are leaders legendary a clear me people work pride It's heartfelt teams and their driving quality, location. just want extend during They leadership not tremendously every service. these operational worse. the day proud how of and committed and day principles customer purpose safety, Working team to do excellence to importantly, for our in more

today, that we your to results together, rode our soles Whatever values. juice of packaging together, lie opportunities are adhesive manufacture headed work listening we to this vitamin look are review in you room, the you shared in took for the used this, achievements life's solutions people it's lubricants your perform essentials. breakfast, purpose, where we car the the you today, morning that ahead. and seat shoes, holds the a cushion, our about around At the remember the the the excited by we're to sharing and important desk creating supplements purpose aligned As that Greif, all for and I'm in the results of foam located focused the the pulling chemicals have thousands is to orange are your work. on the smartphone, you the

of these products, and Greif of in All were contain and time products. packaging shipped one which all materials, them at are stored everyday essential

globally is and advantages is a which service, our of our of customer that. most the Greif products as Those have in entrenched no industrial in are capabilities by of legendary statements. outlined vision evolution. the competitive significant we business, our critical Price in the developed in middle positions all because know leading We result nearly Greif packaging accidents. deeply was positions leading maintains It the

System. making our principles, is are on this all by Greif of Business through financial missions of a to create our following strategic success the progress and We excellent engineered flywheel

are I today's prepared of provide information nearing on. last will the more you end with we on remarks, announced some the and operating change Towards model December completion

fiscal to QX. near-term gears shift Slide X. to performance let's now, in turn Please For

globally variable and market experienced solid basis. to net choppiness successfully All regions in I'm quarter end growth manage we where for operating Greif, another a report the individual continue quarter through on pleased environment. despite to an uncertain

of Although a There's are East still to evidenced that significant exited encouraged have runway basis, but a reaching also optimistic Lat cautiously West the quarters. has demand applies level have recent of over now America trends trend North normalized talked year-on-year trough we on we as past the about small the to This region. us Am volumes, to on volumes. improvements we our -- have

also expected, improvement, was APAC while encouraging.

is As data those QX now In in by both recovery. to notable markets. a third our mark. source are This around coatings chemicals, fluctuating market, lubes, calendar XX strength. continued sequential from end destocking negative QX is a of important be approximately QX This at path short performance significant the PMI markets to the straight Year, New a we equally Chinese QX companies but was the and into EMEA, volume as largest on leading sales, calendar of serving as QX, negatively quarter impacted GIP mentioned, of as particularly of improvements. saw outpaced the paints XX% macroeconomic the is GIP our many but and with quarter underlying

paired Business our This System customer action. Greif legendary service with outperformance the in demonstrates

walk are customers results. change We with decisive our Slide when and maintaining close occurs. then action third on over turn With quarter X Larry will that, our relationships to through reacting things Larry? to I with

Lawrence Hilsheimer

call. thank all for and our Ole, you, Thank you joining

in Ipackchem additional our our the the mentioned, X of business in Delta which is synergy In the made additionally circumstances. portfolio debt completion. expectations. down integration long-term to range our progress steps with we provided divestiture capture Company and are and towards continue of results under we well quarter financial line leverage our case strategy solid towards the model pay meantime, produce simplifying nearing X.Xx. to and ratio Ole We change continues As our operating on execute debt made Petroleum through

X.XX, proceeds X.XXx. forma note of impact sale X. on Delta our this Please Delta including leverage proceeds would been have at does adjusted August include while The not is that the current received the pro leverage,

of earnings line per This quarter adjusted remarks and was $X.XX. cash results, of by and the our performance financial of driven expectations. that Ole with was finished his outlined share we performance adjusted million in in free for $XX EBITDA As flow at volume million $XXX the EBITDA,

cash expectations free capital as results. recovery. with aligned was working ramped volume turn as use Slide flow X the Our the to we for nascent to QX we walk GIP Please business had modest up our performance through to also

QX, in In a all on improvement year-over-year demand totaling saw GIP basis. nearly X% regions, global

XXXX you XXX expected sequential into to products. On related EBITDA to mix a is to higher-margin this on in significant. encouraging, current shift basis, acquisitions, basis, I our GIP global on X While to change margins are continued benefits shortfalls cost inflation, PPS remained remind operating down a and results. recur. model polymer-based which volume were turn strong by Slide the levels onetime our margins 'XX, supported points did a year-over-year due EBITDA Please primarily not in investments basis, ongoing for basis that several

the same business paper experience QX. to continued in dynamics conflicting Our as

volume based Continued product, inflation improving We our well demand increases. coupled on are significant demand. firmly paper these our input improvement in and cost unrealized warranted for believe with partially price as as

solutions URB. to with is As to lag a result, our successful as PPS increase continuing including controllable margins customers non-index manage implementation prior team in year. The based price well, continued paper

have be discuss still the view offset. not work XXXX impact we to and price continue However, Please market X outsized turn real dynamic, the to of aggressively trends, sync will which with in Slide headwind to to index-driven is to cost fiscal we a guidance.

cost In volumes prior our price from When in we guidance although all cost consistent slightly QX our favorable variety prior guidance. regions will We benefited ultimately headwind is due were paper and anticipating and a more to in value-based relative determined we was of that QX anticipated our in QX, small range to year-over-year, the that improvement guidance, than pace guidance guidance. GIP. appropriate. in our better pricing slight tailwinds considering SG&A update, are with relative pricing maintaining less Relative call to a QX present our positive of to

However, the Delta some of as such by QX. contribution was lack items in that slight from of from offset headwind a other

horizon. significance tailwinds What this guidance remember is the to considering important is certain on when of the QX

we increase, return to focus maximize to diligently customer down on the of approximately than of to paper $XXX when we the with increase, close million. would earnest. million near over million term, and and while EBITDA a volume-related stack. which, discuss of relationships are allocation. capital turn impact price our to actually midpoint million volumes still 'XX of recently the $XXX Slide continue ensure recognized XXXX Adding Please return will along improving, Our lower capture X-year volume begins in EBITDA value $XXX lean 'XX excellence on In volumes, on $XXX to significantly in X were guidance fact, the EBITDA. of fiscal to we recovery A be incremental operational

deployment disciplined to our capital that quarter demonstrate actions. to committed our through remain We to this and capital allocation, continued approach

maintenance our have strategy. focus. ensures which two generation next week, dividend. uses stated our our objectives of priority remains aligned our is CapEx, continued increase our increasing this and After deployment another cash, business in our cash we long our Earlier and continually We that announced dividend. quarterly core those funding Earnings modest funding are safety to priority growing growth

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our provide turn of things upcoming I'll a that, to for with Slide XX -- to Day. you on Ole preview With back our Investor

Ole Rosgaard

And one December up coming Greif's will discussion item on you important ongoing would review like December our Larry. to York. XX with in be you, I you model is Thank our or operating New Day change. today Midtown Investor today, which for to in

functions in currently the We as by opposed are of solution organizing geography. commercial operations our material and process to

Through will organizational upcoming metals, all at better we ongoing distinct organizing which we and portfolio. lightly verticals, capture that land structure, material still solution our While will by plan detail products discuss integrated in our to which X benefits, on material paper, polymers, clarity of now Day. Investor have we the solutions, encompass

comprehensive and solutions on First, subject to by optimizing accelerate and capitalize us by us enable to to growth will market commercial higher matter margins. pricing concentrating through alliance That suite better value-driven packaging and drive of functions enable will our planning expertise. operations account it

will functions, all cost realigning that align organization. functions. and of the by functions to at effectiveness all levels margins. better the driven approach by enabling also individual The we results efficiencies our drive enhance of will It will business Secondly, maximize accountability

community expand also predictable deals. a and Lastly, provide us cash speeds our effectively us It it to will synergy deploy investor integrate help growth It to our transparency on future more level and to and will capture to and faster. returns. will execution, us prioritization acquisitions our capital provide allocation to for enhance streamline allowing allow of deeper ability

in Additionally, externally whether segments. reported change we upcoming change a to result assessing this are will currently

talking profile margin We investor basis businesses. sufficiently and a to external segmentation is is we of have current ongoing, show That leading end plan community result Investor are but provide frequently our we end starting Slide that these our confident investors of our heard our Please still business, the assessment and on that some for. feedback the to product added. regional the clearly not XX. from primarily to shift material are our detailed growth looking by with color markets cadence the transparency about solution will And turn at Day,

mix the operating behind our our relates driving model as our in of products specifically of portfolio, force Part of sales. the of polymers a percentage change to growth shifting

polymer-based was in in and We past focus more approximately In debt have priorities XX we growth solutions. months. accurately, in XXXX, solutions, packaging our have very mix the that or clear decisively focus XX% resin our been acted over our that polymer-based packaging business lie

for As XXXX, in We X we to mix our previous products. short has continue now in as XX%. have years, Day polymer-based now just of that is And further in our that XX%. to anticipate that runway shift approximately mix growth significant shifted Investor

quarter, the that Delta further accelerated of sale This shift. portfolio

it and Delta competitive for more not Greif's we core cyclical a much growth to is great it, end as priorities solid While served business core received and markets. it's value advantages

For by to sheet those add ways, parted reasons, proceeds. balance turn have in Slide we paying the a doing XX. Please so, down flexibility and with debt

to to extends world you best please And I'll XX. investorday@greif.com, make you and come hope our us request repeat vision have reaffirm to company to investors, to be a today, also that our hope the reminder, and in out you to the a customer Investor that, our visit registration. any to service investorday@greif.com, reach our our enjoyed performing presentation questions to financial I Day on we at as I sincerely with December the or To time customers. like would

results We to are deeply committed to in are financial validating evolving through us our and investment proactively warrant solid and your increased modernizing and continued investments. business continued

Greif. of myriad sufficient communicate value the hour X are time at earnings creating at to is ways probably we not

confident strategy. Greif so And success And the please long and proven the primed that for will will in for near that in both Last through to once term I'm our you depart Q&A. our strong is Thank together December, after the breakout open you with on you half day Build operator, execution lines more. confirmation

Operator

Matt [Operator Instructions] be coming And Roberts will our of Raymond from first question James.

Matthew Roberts

and I in Ole, Investor prelude XX XX Day appreciate Slides to here. the

polymer-based understand average? without December, is you've either too from you Or or products feeling that margin mix me you within business longer-term how that contribution help GIP? the a or compared as So a benefit much received is there the to maybe thunder maybe result the can margins think on incremental achievable, total portfolio in poly-based margin shift and of target GIP

Ole Rosgaard

M&A selection certainly Maybe just can. to I our you of criteria. first, remind

to that margin that we And at at margin cash or companies, companies will companies review we free margins. premium looking above a are the of with with is you those end our And having flow make find only accretive XX%. And when EBITDA means looking like polymer So in typically a also looking is sure companies the at primarily segments current up that to criteria margins. of to of EBITDA the is we're the And segments resin-based that the XX%. like one at we're excess market. target mid-XX in

Obviously, have business. we current a

reaching in once margin. a acquisitions term, the make So changing long for towards we even will enterprise. whole the XX% accretive, with it's see margins not the the trend you now they're But the

Matthew Roberts

URB Larry, did a mention. since ] hours OCC continued XX cost down on As And sequentially the presentation, you noted improving. last come and quarter, headwinds price we've that follow-up, in seen albeit slightly go you [ through

your to So to in price/cost a at the that a need is in relative any at impact? in gave is there where midpoint certain guide? Or containerboard there? you range current your see tracking of on prices, changes hear And maybe expectations the be the URB you or more price last would to either be XXXX quarter

Lawrence Hilsheimer

quarter, recognition outstanding for only assumed for up June to containerboard resin, price partial that -- the had anticipated increases In But better the the we they then benefiting XX for at in thanks. than increases typically Matt, August actually we the recognition a time. through XX and due Yes. ended we little price from recognize on volatile URB. in of

bit for guidance. of of tailwind year our impact revised those net the So full provided a little a

And GIP. benefits we -- had had also better expected than we value-based pricing in

anything there more better The Our inflationary teams and just anticipate believe certainly, something in trends, paper that industry our benefits don't the should be containerboard. in particularly but 'XX, did guidance, still remainder entire were optimistic a great job on of focusing on improving recognized the in In given come. should raw of we're to a I fiscal value demand over in slightly be well. year, of combined upside cost to we as were pricing material relation volume. and an bit the expected, than costs those little

QX improving had demand, hopeful on that relative we're seen were We we what slightly all led while we bit change it. we little was better, of downside other more And than fourth that, things. the Delta together, you it bit continue had guidance improvements last from there's was. we're a EBITDA It When us hand, basis. we where to cost the reason, allover where focused guidance by the on our below didn't miscellaneous to But also our and to that little takeout had we as in offset not mixed improve. that just talked quarter had a have expected. of for -- of bucket we put sold a actually And that range would we lift some expected. some Volumes, had quarter sort in would on the that's

things the we be As get see beyond across changing for not what us rapidly mean far We'll big things from September, before, I 'XX, could yet. I a as in which environment. platform. there in think impetus are the our so Fed we're

do So through in for had 'XX Also benefit what startup we that bottom Dallas obviously, guidance, we've we our sheetfeeder us go as net about have we'll as but had at very our excited we're start-up costs, to line of we be the will talking though, no but -- that well. call. be next about our yet contributing

Operator

Our next question coming of be will from Baird. Ghansham Panjabi

Ghansham Panjabi

going Can direct the your and just near guess sentiment back that longer, over sort us and volume that relates in seeing so just of industry that X, environment we are color talking to outlook bit seen to as in I Maybe the a to of basically. you're usual customer on your lower where then it have time? starting Slide anything conversations within volumes context GIP the give plateau And a forth. the you competitive Are and with competition about at activity. in than touch so terms customers different more you of dynamic today? on for you've the term

Ole Rosgaard

Thanks, pricing really Ghansham. volume market all, participants -- levels to their lost first market of tenders competition despite maintain of you what see Yes, or are market positive has remains be making And high. at to number we we believe some participants very trends, see eased mean, I some RFQs or [ volume. not ]

service And philosophy. continue customer operational and matched. to in the view, seen pricing, It's GIP be to continued return competitive our our quality we volume unable customers our our despite legendary our strict competitive part our low we maintaining the trusted over customers past, to simply large chasing is after and have really, us strengths of with in these We the past pressures. In and adherence quarters superior a focus and margin teams of approach. our commitment to excellence value-over-volume relationships our on our

we term. back then customers and So over in those the time, win come long

investing In coming a own sort as may terms have seem being stagnating earlier less in the color, that bit in end likewise you and than markets, year. was have QX, customers still of occurred calls, paint are and markets. coatings. and in strongest from these but the volume after the destock lubes, mixed, is before our earnings be more we But on to And of those bullish agchem chemicals solid, bulk in the end in noticed, been food bar they

to the farmers The about lose crop, serve, Wall recent so shifting tabs year, have demand read patterns our going compare shows And markets keep the in keeping in bumper where have a will time, very ag an and our we the And but on, article and may they're You focus you are on this due Journal America, North as lubes, up. article, sector our that the means overall, demand Street in money. reaction but to signals we article it in a to our what may some still. on a performance. and quick players have our in bulk terms even investing end teams have feel to close really I goes And to We're resting that laurels. and engaging the outperformed if going with like mixed into them volumes done fertilizer on exceptional job significant that of in that chemicals of customers of volume be our machinery. But and so overall,

will to chain than So partner, industry drive and critical volume remain that we customers connected a expect better continue performance. our supply as just deeply with

Ghansham Panjabi

the cross-border what geography, it just at of sales something to goes this substrate versus that multinationals GIP and customers pushing based Okay. acquisitions supplier? natural separately, the is themselves want company done Very all for? that on of the Or on a evolution a the then this reorganization your in comprehensive. the And is have just by percentage been point? And base scale you've

Ole Rosgaard

we our one, all, the Well, anticipating first are customers to Number serve better. it's really yes, of make. changes to

drums if so types steel, whether you have GIP, we're and PPS, think making, polymer-based, all So that GIP on. of it's in materials fiber we of

solution. in way, a focus of one drive kind our better to material So even do teams want are on is our to what we jack-of-all-trades. to in And be really

jerrycans obviously from at blow-molding steel is a different making drum. So

jerrycans, for in out be to So even separating organization in And about then will help with our management customers all same SBU world of we're a out that like the SBU each under of a so and -- we've that at need doing that separate the all solutions. better means making commercial they separate to our those. material extracted and best is think quality. And jerrycans in the the

Chief function, So that our an organization And commercial will so cross-sales. up drive a becomes under Commercial enabling Officer. to and sales speak,

the customers then from it will this just able effective way, customer in morning salesperson past, visited in to more will the the in we sell integrating our And combining better. And more another a product we by Greif another and when will structure. comes much in companies and even an in would M&A, As we and salesperson margins we serve be be be sales a that, also do effective have drive these lastly, will to our into afternoon.

So growth. overall, being the designed been is structure has or designed for

Operator

Mike Roxland will next from coming Our be of Truist question Securities.

Michael Roxland

to your wanted on last to got up quickly question. follow one the Just response and

On count any that additional the given the require transformation, split? force portfolio does sales head

Ole Rosgaard

You the evolution to mean in organization? our modernize

Michael Roxland

Exactly, yes.

Ole Rosgaard

to reduce been... head designed not That has count. never It's

Lawrence Hilsheimer

[indiscernible] increases it. as it

Ole Rosgaard

be not had operate do do head questions be head will where taking we will growing increase our out we increase but it count volume volume, And able some And adding as We count, it's will designed count. organization. will it. adding to further are won't that No, we believe take effectively. much our we head without to it. We've more we to the or able to be

So be in But more certainly we will we effectively. adding. operating much won't effect, be

Michael Roxland

now going Got you. a Because wondering, force your become targeted as force, sales to sounds product. I it in just was specialists is sales your like

I'm go -- ahead. sorry, So

Ole Rosgaard

The a they our hunters. by will managers, very material from farmers management management solution strong than that will sales function customers. And have sales dedicated more have to the but our function created then a we acting serving will more be or to generalists, teams, force more teams a and sales sales product turn be we product product also Yes. of rather central support as will

Michael Roxland

Got very it. clear. That's

Global of your market do you to? you media remain Packaging, terms sequential in Obviously, to improvement showed attribute depressed. what In despite the PMIs Industrial outperformance relative

I'm type Like you still market some So you're that despite able things outperform how somewhat of being wondering there's in doing go-to challenged? are if restocking? to differently the

Ole Rosgaard

and of gave Well, on kudos of long-term I that's teams, really tell probably over driving -- and customers. lot store Imagine a same to or service. And experience with of for probably the go you've But the our pay people back somewhere got a that tell you with customer where that's with you're well, that I there you or bad and prefer home, vendor even as of our to and to our you conversely, really a a that goes that a vendor mean, you to prepared them. you this and -- exceptional your customer then dealing service, also then never try thing and word level spreads. provided And service. And service more focus bit one a going go shop everybody that you I'm that. it's you'll deal that had again family,

have would perfection never that legendary better and get customer time service. current was very going environment. I better. add in we we really in And knowing but And on on that we're just providing that will in the results top we mean, that, respect, have you providing a as is products, chasing expect. So and And we catch focused to top can why it, long of quality best-in-class. process, better for deliver this become we I solid

Michael Roxland

one it. turning final over. before question Got just And it

how with implementing you is are customers? Just And business of in announced and terms of price non-index increases the your customers, PPS fully much non-indexed? those non-index

Lawrence Hilsheimer

Yes.

that, at look can't space. it's that tell that And you URB XX% close. we it's really about our XX%, so it's -- we've but the I just pretty great in XXX% had success. driving, customers when of So of yes, --

Operator

coming And Hajde our of will Gabe next Wells question be from Fargo.

Gabe Hajde

for -- going the inch, to wanted you an so us mile. I'm Larry, I gave

Delta 'XX sure. the in fiscal out thinking us you some help known can of kind the you on for and about of that If I'm items called Petroleum

lastly, said EBITDA million of quarter. maybe a number price And sold? for annualized the You then that have that of fourth through in $XX should bit flowing headwind some reflected the to in press higher there of we But be the compensation out back Is that other release. the called about? items year normal, a about should I indices? And in kind of a already we guess $XX were any I then getting thinking increases kind a based in good which items the that thinking Is assets that guess, I next kind thing. on think be price million onetime little been gross to is

Lawrence Hilsheimer

On Delta, [ about was high. -- with after X.Xx no, was cost It million number deal Yes. is about strained and that of ] we $XX our that kind stuff.

So more in that. -- on well, you can math do the

during vastly business the that now year. So

higher little actually quarter fourth was that. going be to than the a So

be that full year, on million. But $X in $XX quarter. X.Xx million would approaching it So for

quarter sorry, number? basically $XXX here minute about on increase $XX my on price have what's a And -- the we million URB, And on in here. through I'm I'm -- hit the a what's at only. -- for containerboard had pricing Yes, to $X number on So had URB the relative $XX will increase the that for fourth million in that a that through the you full year obviously on it we flow sorry, about October incremental this $XX containerboard? struggling that ends because will full up element, mostly Matt, year being on that on the basis month the URB. $XXX,XXX notes

Matthew Eichmann

$XXX It's $XX. for

Lawrence Hilsheimer

$XX. Yes, $XXX per

on -- So those how much is it?

Matthew Eichmann

And that recognized was June. in

QX. to will fully be So it beneficial

Lawrence Hilsheimer

address question? the Gabe, does Yes. that Right.

Gabe Hajde

that mentioned I I or mean think was I I slides. does. the other the don't in thinking in It remarks economic the thing about prepared was downtime heard

Just you guys today? curious in system kind the of running are where

Lawrence Hilsheimer

downtime running our economic out Yes. have that containerboard in URB been our you number? full some We've had space, do We've in business.

Matthew Eichmann

It was other... from nothing the significant

Lawrence Hilsheimer

I know minor. it's

So...

Matthew Eichmann

in near optimal any economic in Any paper grade, -- backlog a containerboard. but from perspective levels of

Gabe Hajde

Okay. on been just you Obviously, the guys have there. one, M&A front. And one active last

basis. Are cut? forma Or being there you in there cycle? the might if given called fact, interest of are kind feel like levered kind where You pro of again competitive you do still the in rate a out more opportunities does out X.Xx we get Fed, on

Ole Rosgaard

We lot No. of a have still opportunities, Gabe.

have robust We a very pipeline.

are continue of the which We don't that. to We lot do a and owners, timing. companies engaged with decide always we

we have to is X I timing if that although to debt that. focus tell it. do may to ratio opportunity to ideal, capability will down the now you level. the get continue So the back not our pay X.Xx along, But to right we comes an we And be so leverage have, that

Operator

Our Brian will of next question coming from be Stifel. Butler

Brian Butler

million the those the maybe $XXX Just for environment, of one. of macro mean, has you to I talk or just of first in see recovery kind on kind there to Or what the XXXX get current volume through right happen XXXX? kind through need normalized kind a more do normalized at kind if we the really we of are back sustain to about some now, When of in volumes that to back step-up that? levels?

Lawrence Hilsheimer

we 'XX. [ step, give a to ], volumes where perspective change you were and is a need We Yes. on QX versus

can following significant to XX.X%. total of from example, 'XX IBCs, let back down down come in GIP, down were over see of number, QX 'XX a we paper, some still in were to stuff XX.X% look X% that, it were to I 'XX our our pretty we regained acquisitions was you 'XX if -- for just I So go total they to give if QX we it's The or to and volumes, another was was sort because of drop-offs were. me where okay? If of X.X%. pretty I because X.X% 'XX X.X%. 'XX, -- you back for but up only just go mill If I down acquisitions, We've go strong. But 'XX. year,

down only up. is to year Next XX.X% and we've recovered X.X%

we So a back at. levels to get the to we still long volume have go way to were that

is marginal is some so Brian, more change. And of macro it than a yes, just it issue,

old been of levels, a the recognized. the if this we volume sort to not got So if pick PPS whole, -- for I just changes price yet as is we to back look This normal us have for including of the year, at up and get value-add is our average million that normalized impact lift in And the in into then back EBITDA you up if go another $XX million. of it's up business, you buying million for ]. you acquisitions And PPS we've $XX picking volumes end a them, get business. And that GIP $XX another our to made. [

a it's piece the So big macro entire environment. against

Ole Rosgaard

Brian, if to color of bit the add just million little a as I well. $XXX can

that as not you volume by alluded factor of is So one much factors. have driven dynamics to that's to, as macroeconomic like Larry consider current single

we can that volume, is So one improved we demand. is to macro the in current that rebounding outpace the primary the it And while factor on interest bottleneck still truly equation QX have rate in and production, new pent-up And sales. demand, to for been be instances, volume drive costs housing shown existing builds rate situation. In that would specifically interest previous major driver for both housing us. a major

own you walls better. house the the or house, you a more in just it move for buy your you paint sell buy when house, know, you new As house to do than

drive may and hundreds all as I would new are happens. and earlier, it component, some appliances they And production our experiencing we and be another an the talked demand You buy ag. for about items industrial softness. other just short-term of example, those for things, of products. And that then when carpets,

play you to it too. of base, end is will Some that action see segment that the as again, improve. interest rate And in softened

of So there's in returning a factors million. to the $XXX lot involved

Brian Butler

the implement? on time What's costs slower kind as you that Okay. either a That's in helpful. sales process pushed you're line evolution that during there is a the that for. And gets model higher the or takes second short-term -- time, there impact that how the And think through? when operating of of is long to of kind on question,

Ole Rosgaard

-- obviously, no. some On year, that, that sales, are On doing there fiscal And not with material. involved conjunction we're but costs it's you in know. as costs this our in changing

Lawrence Hilsheimer

going We through disclosed, to change. million to about but related were this Brian, million going Yes. up cost $X of we incurring had just to end the $X

Brian Butler

that of does 'XX change kind completed is here? into fiscal as And 'XX that well? in really roll Or

Lawrence Hilsheimer

November we're -- we and this evolving model into will beginning operating will out but details in rolling be roll be this, X. we We'll in December, the

Brian Butler

for one growth how of the Okay. more do shift in does that look segments? versus growth polymers you're into the the that one. the kind other versus On moving that And towards your market kind specialty What other then organic last organic piece segments, of of view you maybe polymers kind like?

Ole Rosgaard

we are products and Well, this? those first of lower. the higher Well, is because the doing margin we why just all, polymer-based products of are much growing in cyclicality much is profile much, much,

company, lot be a less want we cyclical. a to So that's higher-margin

mean, is to plant, to new a I which side, organic Malaysia traveling IBC I'm week, the next open polymer. On

earlier adding lines IBC We we year, world We Turkey. this in the opened another plant all are opened the all time. over

growing So yes, are also we right, organically.

Operator

of [Operator our America Securities. next Bank coming be Instructions] will Staphos And of from question George

George Staphos

ways you this regarding do think So on in able of couple the touched customer you as outperform Europe a call couple different think where it, Ole, spite there won't your is of a legendary about to the service, in model But the you where of quarters. spite of horizon Europe. on we've be next

Europe be this in able in spite what's should been For to outperform of reason, conditions. sluggish you

put somewhat some you question. on -- quantification could some of qualitative that If sort maybe

Secondly, can there. the exit follow-up. you're quarter. in terms you I'm trends into the might interested trends what I'll about of fourth talk one CorrChoice in in big by it leave there. particularly what I have seeing And were marginal business your

Ole Rosgaard

over a see value I believe after that of do Thanks business all, And us. to first I now back, we lot certain we I the past. philosophy we still to a to why is period, business quite Well, outperform. the have trickling if George. lot, question back our volume, can said is believe look that in Europe, And of On and answer yes, can have the we to to that? back no of go a

continue one that's to reason outperform. for we will why So

Another one less it's higher, really is more we the and well. much into are segments is cyclical And historically have margins we have strong. sticky, are And food hard segments those really been very teams where we as getting growth focused on because pharma. on much one working in not and it's

the performance So CorrChoice. added on that will capacity with have way, up... we believe organically. come And continue I Europe. by Sequentially see we that, was combinations, CorrChoice well, out to of as more those solid

George Staphos

[indiscernible] businesses, that. about sorry CorrChoice, with the yes, but are What

Ole Rosgaard

was answering second I just your question.

and which So also as in would gives our the are XX% a we view a of is up a demand to in I QX to -- we advantage And cycles improve, competition, of was sequentially, slightly this America, as remind nearly demand guidance. containerboard was our market, well have as CorrChoice expected positioned this role recovery. Champion to the of the full for competitive of visibility better you champion independents investments us which we containerboard than our earlier North independent continued in our us.

and combination we're at lighter complexity. produce speed and fluke, board run any any can any profitability. skilled So We handling size with

those So of the for growth that we some like sort in reasons of we are -- containerboard. why see

George Staphos

And the what Ole, were just exit in trends seeing and quarter? that in the were general, other you

Ole Rosgaard

a can't really X, a still is the exiting choppy. very it's sand. like I I about but walking talk It's little would X quarter say quarter choppy. bit

a and step then X backwards. half you steps slide forward You take

But months, month, it's So we trend goes dive again up the next positive all the across a we and the have the see, then then months overall it coming. is we following see segment. again. yes, where And

Lawrence Hilsheimer

August always in month it's tough thing, Europe. the holiday is one because the Yes, probably vacation

the Europe. what But it the in goes they're as substantially it lot gets a so to to July. harvest we and of always And also exiting choppy, south saw seasons in same

George Staphos

your all make, comparisons. What season your the are seeing down And calendar I'll okay, this quarter on the To calendar you share we're Back Last question containerboard in a offer the seeing? markets little corrugated great, adjustment overall. over. wanted easy better? on trend, seeing what it we kind quarter what for the and -- up view you're setting are what bit volumes customers extent your one depending what a in why fourth terms for could you a flat, of you're have holiday customers that that given to you'd but on business second in turn call, CorrChoice recognizing saying markets, conference market bit, you are through that corrugated not following, doing very to were businesses of little up

Lawrence Hilsheimer

it's we're positive. mean Yes. like I and kick mean way. -- he's I George, I just rates and off, we mixed thing hearing out if see I the same that we've mean, Henkel bag it's home there. sales like interest others we talking call, comments think very drop feel Dow CEO's positively very was expressing. same the the you their in read I earnings been if mean

mixed other is hearing bag on same BASF that's paper had The And we're street. in You people business, as not. of what our X week -- It's hot. it's kind It's not. the mixed. as from the why we next it the gets termed week

Ole Rosgaard

this affect And a to average money this they their and at person And they will they industry. Amazon I credit think debt between get down, on the it's bit the drop rate shop and little they more help obviously looks go rates. linked if more hands, and their because payments, card their interest

So we don't have a crystal George. ball,

Operator

of next Our Hajde Fargo. a follow-up Wells Gabe question from is

Gabe Hajde

markets, American remind North directionally talking housing? tied how I to end in you your roughly much different can the Real business, us, about, GIP we're quick. When guess, speaking, is

Ole Rosgaard

take a of chemicals is bulk that. you It's really on one because ones. largest chemical, difficult It our to give you if number is

Some buy. difficult installation, in some you fridge, goes shoes It's and into out. the the sort soles that into of goes some your to just into goes point

Lawrence Hilsheimer

that a have don't [indiscernible] at We negative Gabe. on all,

Operator

Ole now remarks. the would I back to And turn like to for conference closing

Ole Rosgaard

also reporting early first Midtown and QX Thank you December appreciate XXXX our that. you your a we in you. day, everyone. And and Investor questions York. you wonderful seeing to a all, continued on forward to December, really XX And in New thank for our at earnings of subsequently We Day interest look the big all in Have Greif.

Operator

participating. call. conference for today's concludes you Thank this And

now disconnect. may You

Greif (GEF) 29 Aug 242024 Q3 Earnings call transcript