Greif, Inc.  (NYSE:GEF), a global leader in industrial packaging products and services, stock fell 4.13% (As on December 8, 11:36:49 AM UTC-4, Source: Google Finance) after the company posted lower than expected results for the fourth quarter of FY 22. Adjusted EBITDA of $218.7 million, an increase of $7.4 million compared to Adjusted EBITDA of $211.3 million. Net cash provided by operating activities increased by $149.3 million to $286.6 million. Adjusted free cash flow increased by $139.7 million to a single quarter record of $234.5 million. Total debt decreased by $309.5 million to $1,916.1 million. Net debt decreased by $332.0 million to $1,769.0 million. The Company’s leverage ratio decreased to 1.73x from 1.99x sequentially, which is below the targeted leverage ratio range of 2.0x – 2.5x, and from 2.49x in the prior year quarter

GEF in the fourth quarter of FY 22 has reported the adjusted earnings per share of $1.83, missing the analysts’ estimates for the adjusted earnings per share of $1.96. The company had reported the adjusted revenue growth of 35.9 percent to $1.5 billion in the fourth quarter of FY 22, missing the analysts’ estimates for revenue of $1.59 billion. Net income of $99.5 million or $1.67 per diluted Class A share compared to net income of $104.5 million or $1.74 per diluted Class A share. For Global Industrial Packaging (GIP) segment, there has been sequential demand deceleration throughout FQ4, driven primarily by growing headwinds in EMEA and APAC and emerging weakness in NA; LatAm region remained strong. Rapid steel cost declines pressured GIP margins as PAMs reset, which is expected to continue into F1H ’23. For Paper Packaging & Services (PPS) segment, there has been sequentially slowing domestic demand which resulted in 26k tons downtime, tubes/core and sheet demand down high single digits. Film and paper core end markets slowest during quarter, partially offset by stronger than expected construction core demand

Additionally, the company has announced acquisition of Lee Container Corporation, Inc. a leader in the North American blow molded jerrycan industry in an all-cash transaction for $300.0 million, subject to customary closing conditions including regulatory clearances and before taking into consideration tax benefits with an estimated net present value of approximately $30.0 million.

In addition, the company has repurchased approximately $11.0 million of Class B shares under the existing open market share repurchase program during the quarter