Greif, Inc. (GEF) experiences an increase of 2.83% in the premarket after GEF stock released its quarterly report. The stock concluded at $63.7 with a 0.6% increase in the last trading session.
GEF Stock’s Third Quarter 2021 Results
GEF stock, a global leader in industrial packaging products and services, released its third-quarter results for 2021 on 1st September 2021. Net sales of $1,490.8 million set a new high, up to $407.8 million from last year’s $1,083.0 million.
In comparison to the net income of GEF Stock i.e., $20.7 million or $0.35 per diluted Class A share rose to $113.0 million or $1.89 per diluted Class A share. Net income was $115.9 million, or $1.93 per diluted Class A share, excluding the impact of adjustments, compared to net income of $50.1 million, or $0.85 per diluted Class A share, excluding the impact of adjustments.
To $2,267.6 million, total debt was reduced by $370.0 million. Net debt fell by $371.3 million to $2,167.8 million in the second quarter of 2021, and by $35.2 million sequentially. The Company’s leverage ratio dropped from 3.7x to 2.8x.
GEF Stock Announces Increase in Dividends for the third quarter of 2021
Greif’s Board of Directors declared enhanced quarterly cash dividends of $0.46 per share on Class A common stock and $0.69 per share on Class B common stock on August 31, 2021. In comparison to the fiscal second quarter of 2021 and the fiscal third quarter of 2020, this dividend declaration of GEF Stock reflects a 4.5 percent per share increase.
$70 Per Ton Price Increase by GEF Stock
On 11th August 2021, Greif announced that it will increase the price of all grades of uncoated recycled paperboard (URB) by $70 per ton, as well as all tube and core and protective packaging goods by 8.5 percent.
The price rise for uncoated recycled paperboard goes into effect today, with new orders and shipments beginning on September 13, 2021. This is on top of the $50 per ton pricing hike that took effect on July 26, 2021. The increase in tube and core, as well as protective packaging, is effective for shipments on or after September 24, 2021. This is on top of the 6% price increase that took effect on August 6, 2021.
Conclusion
GEF’s stock future is bright, with earnings anticipated to more than quadruple in the next few years. Higher cash flow appears to be on the way for the company, which should lead to a higher share price.
