US-based industrial packaging products and services provider Greif has reported net sales of $1.308bn in the second quarter (Q2) of fiscal year 2023 (FY23).

This reflects a decrease from the net sales of $1.67bn registered during the same period in FY22.

For the reported quarter, which ended on 30 April 2023, the net sales for Greif’s ‘Global Industrial Packaging’ and ‘Paper Packaging & Services’ segments also decreased to $748.2m and $554.8m, respectively.

The company has attributed this decline in net sales to the lower volume of its primary products sold, lower average selling prices and the mix of products in the market.

The change in foreign currencies against the US dollar has also affected the sales.

Grief’s net income totalled $111.2m or $1.90 per diluted Class A share while the same was $125.1m or $2.09 per diluted Class A share in the Q2 of FY22.

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The company’s adjusted earnings before interest, taxes, depreciation, and amortisation (EBITDA) in Q2 FY23 dropped to $228.6m from $251m in Q2 FY22.

Greif CEO and president Ole Rosgaard said: “The past three months have truly showcased the remarkable effectiveness of our ‘Build to Last’ strategy.

“Despite operating in an environment of ongoing demand uncertainties, our teams have remained agile and resolutely focused on delivering exceptional value to our shareholders.

“They have successfully implemented cost rationalisation measures within our system, driving robust cash flow generation and achieving the highest-ever second-quarter free cash flow in our company’s history.

“Additionally, we have achieved the second-highest second-quarter EBITDA, surpassing all quarters except the historic Q2 2022 comparative against which this quarter’s performance is measured.”

The company recorded an increase in the net cash provided by operating activities to $210.8m.

The adjusted free cash flow for Q2 FY23 was also up by $70.7m to a source of $185.5m.

Greif reported a decline in the net sales for the first six months or first half (H1) of FY23 to $2.57bn, which was at $3.23bn in H1 FY22.