Why Greif, Inc.(NYSE:GEF) stock is going gangbusters today

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Greif, Inc.(NYSE: GEF) stock enhanced over 15.2% on December 7th, 2017 (As of  10:33AM EST; Source: Google finance) driven by their better than expected performance. RIPS – the group’s major business segment by revenue and operating profit delivered a decent performance despite facing impact of Hurricane Harvey.

For the full year of 2017, the group’s Net sales rose $314.6 million to $3,638.2 million while Gross profit enhanced $29.8 million to $714.7 million. Operating profit rose $46.8 million to $272.4 million while operating profit before special items enhanced $26.7 million to $335.0 million. The fiscal year 2017 Class A earnings per share before special items enhanced over 21 percent year over year; while the group generated more than $200 million in Free Cash Flow and returned nearly $100 million to shareholders. Their focus on customer service excellence continues to strengthen.

As per their Rigid Industrial Packaging & Services performance, Net sales enhanced $59.6 million to $662.5 million. Divestitures negatively hurt net sales by $2.5 million and foreign currency translation benefited net sales by $9.8 million. Gross profit fell $12.0 million to $118.9 million hurt by material price increases and a $4.4 million impact from adverse weather events. With regards to their Paper Packaging & Services, Net sales enhanced $34.0 million to $223.0 million driven by rise in volumes in their mills and CorrChoice sheet feeder network and increased sales of specialty products. Gross profit enhanced by $10.0 million to $49.0 million.

The group has three strategic priorities which include investing on people and teams to foster a strong culture of employee engagement and accountability, delivering an industry leading customer service to achieve superior customer satisfaction and loyalty as well as Strive for performance excellence, leading to better free cash flow

The group’s consolidated customer satisfaction index (CSI) enhanced over 2% against pcp driven by Flexible Products & Services (FPS) segment, which generated a 17% improvement against the same period last year. The group is aiming that each business segment to deliver CSI at a 95 score or better. Their Paper Packaging & Services (PPS) segment performance has been consistent while their Rigid Industrial Packaging and Services (RIPS) and FPS segments are nearing that threshold.

 

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