Greif, Inc. (NYSE:GEF), a global leader in industrial packaging products and services, stock rose 2.10% (As on Dec 9, 11:34:03 AM UTC-4, Source: Google Finance) after the company posted better than expected results for the fourth quarter of FY 21. Global Industrial Packaging’s net sales increased by $299.3 million to $951.6 million primarily due to higher volumes and higher average sale prices. Gross profit of the segment increased by $53.5 million to $184.3 million primarily due to the same factors that impacted net sales, partially offset by higher raw material, manufacturing and transportation costs. Paper Packaging & Services’ net sales increased by $119.4 million to $621.7 million primarily due to higher volumes and higher published containerboard and boxboard prices. Land Management’s net sales decreased by $1.8 million to $4.9 million due primarily to reduced timber available for sale as a result of acreage sold in the second quarter. The company reported net income of $104.5 million in the fourth quarter of FY 21 compared to net income of $44.4 million. Net cash provided by operating activities decreased by $63.1 million to $137.3 million. Adjusted free cash flow decreased by $79.1 million to $94.8 million primarily as a result of inflationary raw material costs. Total debt decreased by $261.4 million to $2,225.6 million. Net debt decreased by $280.1 million to $2,101.0 million and decreased by $66.8 million sequentially from the third quarter of 2021. The Company’s leverage ratio decreased to 2.49x compared to 3.66x, within the targeted leverage ratio range of 2.0x – 2.5x.

GEF in the fourth quarter of FY 21 has reported the adjusted earnings per share of $1.93, beating the analysts’ estimates for the adjusted earnings per share of $1.49. The company had reported the adjusted revenue of $1.58 billion in the fourth quarter of FY 21, beating the analysts’ estimates for revenue of $1.48 billion. Net sales are impacted mainly by the volume of primary products sold, selling prices, product mix and the impact of changes in foreign currencies against the U.S. Dollar.

Additionally, the company has declared quarterly cash dividends of $0.46 per share on its Class A Common Stock, and $0.68 per share on its Class B Common Stock.

For fiscal 2022, the company forecasts adjusted EPS of $5.85 to $6.45 and adjusted free cash flow in the range of $400 million to $460 million. The mean consensus of analysts is for adjusted EPS of $5.87.