Greif Announces Price Increase for Uncoated Recycled Paperboard (URB)

Rhea-AI Summary

Greif (NYSE: GEF) announced a price increase for all grades of uncoated recycled paperboard (URB) by $50 to $70 per short ton. This change will take effect for new orders and shipments starting July 8, 2024. The price adjustment is driven by rising costs in raw materials, energy, labor, and transportation, along with growing demand for URB products.

Positive

• Price increase of $50-$70 per short ton for URB products indicates strong demand.
• Effective date for new pricing is July 8, 2024, providing a timeline for revenue adjustment.
• Higher prices can potentially improve profit margins if demand remains stable.

Negative

• Increased costs for raw materials, energy, labor, and transportation, indicating higher operational expenses.
• Potential risk of reduced sales volume if customers resist the price increase.

DELAWARE, Ohio, June 04, 2024 (GLOBE NEWSWIRE) -- Greif, Inc. (NYSE: GEF, GEF.B), a world leader in industrial packaging products and services, announced today it is implementing a $50 to $70 per short ton increase for all grades of uncoated recycled paperboard (URB) products.

The uncoated recycled paperboard increase is effective with new orders and shipments on and after July 8, 2024.

The URB price increase is in response to increased raw material, energy, labor, and transportation, as well as increasing demand for our uncoated recycled board (URB) products.

About Greif

Greif is a global leader in industrial packaging products and services and is pursuing its vision: be the best performing customer service company in the world. The Company produces steel, plastic and fibre drums, intermediate bulk containers, reconditioned containers, jerrycans and other small plastics, containerboard, corrugated sheets and products, uncoated recycled paperboard, coated recycled paperboard, tubes and cores and a diverse mix of specialty products. The Company also manufactures packaging accessories and provides filling, packaging and other services for a wide range of industries. In addition, Greif manages timber properties in the southeastern United States. The Company has a workforce of more than 14,000 colleagues operating across 248 facilities in 37 countries to serve global as well as regional customers. Additional information is on the Company's website at www.greif.com.

For media inquiries, please contact:

Bill D’Onofrio
VP, Corporate Development & Investor Relations
bill.donofrio@greif.com / +1 740-549-6026

FAQ

What is the price increase for Greif's uncoated recycled paperboard (URB)?

Greif announced a price increase of $50 to $70 per short ton for all grades of URB.

When will the price increase for Greif's URB products take effect?

The price increase will take effect on new orders and shipments starting July 8, 2024.

Why is Greif increasing the price of URB products?

Greif is increasing the price due to higher costs in raw materials, energy, labor, and transportation, as well as increased demand for URB products.

How might Greif's price increase for URB products impact its stock (GEF)?

The price increase could improve profit margins if demand stays strong, positively impacting Greif's stock.