- Solid FY 2024 financial performance despite challenges: Greystone Logistics reported a net income of $5.03 million and EBITDA of $13.1 million on sales of $61.8 million for FY 2024, demonstrating resilience in a tough economic environment.
- Product innovation and sustainability focus: The company continues to innovate with products like the 48×40 warehouse pallet, new extruded hollow lumber pallets, and initiatives like converting pre-consumer plastic waste into pallets, supporting both environmental sustainability and customer needs.
- Strategic growth potential: Despite flat sales volumes, Greystone anticipates strong growth in 2025 with over $50 million in its sales pipeline, the launch of new products, and the operational ramp-up of its Jasper, Indiana facility.
TULSA, Okla. – Greystone Logistics (OTCQB:GLGI), a leading manufacturer of recycled plastic pallets, has announced its year-end earnings for the FY 2024 ending May 31, 2024. The company achieved a net income of $5,027,491, with EBITDA of $13,086,091 on sales of $61,780,715. The company stated that the $.16 per share earnings highlight its resilience and commitment to innovation in a challenging economic climate.
“Cash on hand at year end was $5,798,641 insuring a level of safety and sufficient funds for our previously announced share buyback. We have now received the new tooling for our extruded hollow lumber pallet with product launch in the next 90 days and introduction at Pack Expo in Chicago in November. Our innovative approach to recycling plastic into durable shipping pallets not only supports our clients’ logistics needs but also helps reduce environmental impact. We are committed to providing sustainable solutions that benefit both our customers and the planet.”
“Our sales volumes were flat compared to the previous year,” Warren Kruger, President of Greystone Logistics commented on the earnings call. “We had anticipated higher volumes but faced delays in customer adoption. We are now focusing on filling our capacity with new customer revenue growth.”
Despite ongoing recessionary pressures and a notable hesitancy among buyers to issue purchase orders, the market acceptance of Greystone’s recycled plastic shipping pallets continues to be solid. The company noted that its focus on sustainability and quality has allowed it to maintain a competitive edge, meeting the growing demand for eco-friendly shipping solutions.
FY 2024: Economic uncertainties have delayed adoption and sales growth
“We’ve had a tremendous year, demonstrating our ability to adapt and thrive even in the face of economic uncertainty,” Kruger continued. “Our new 48×40 warehouse pallet is already generating sales at a pace of $5 million per year in revenue and with over $50 million in our sales pipeline, I anticipate a robust 2025.”
Also on the earnings call, Kruger stated that the company is on about a $6 million annual sales pace with the 48×40″ pallet. “I anticipated much more than that with them, but they are holding off a bit.” Kruger is bullish on the product and has a new tool on order to arrive in five months. While the design was made in concert with Walmart, it can be used with other 48×40″ pallet customers. Walmart suggested ergonomic features that have been incorporated, including “handholds in the correct spots and easy to grip.” Greystone also dropped some weight out of the product and made some minor design changes to prevent damage from walkies.
Other initiatives include a 43×43″ pallet for wire and a new keg pallet for Yingling.
Kruger also discussed the acquired Jasper, Indiana, facility that makes extruded plastic pallets. “The Jasper facility has significant capacity and can produce a pallet a minute,” Kruger said. “We are currently at zero production but expect to start sending samples to customers by the end of the month. This facility will help us meet our $100 million revenue target without issues.
“The tooling for the extruded lumber product is back, and we expect to send samples to customers, including Toyota, by the end of the month,” he added. “This product is six months behind schedule, but we are optimistic about its potential.”
Pre-consumer plastic waste into new plastic pallets
Greystone can also help out companies that generate plastic pre-consumer waste by taking it to make plastic pallets. Such is the case with Berry Plastics. “They’re taking their plastic waste and sending it to us, and we are, in turn, creating their pallets for them for their system,” he said.
Greystone remains steadfast in its mission to deliver high-quality, sustainable products while navigating the complexities of the current economic landscape.
For more information about Greystone Logistics and its innovative products, please visit www.greystonepallets.com
About Greystone Logistics
Greystone Logistics reprocesses recycled plastic and designs, manufactures and sells high-quality 100% recycled plastic pallets that provide logistical solutions for a wide range of industries such as the food and beverage, automotive, chemical, pharmaceutical and consumer products. The Company’s technology, including a proprietary blend of recycled plastic resins used in the injection molding equipment and patented pallet designs, allows production of high-quality pallets more rapidly and at a lower cost than many other processes. The recycled plastic for Greystone’s pallets helps control material costs while reducing environmental waste and provides cost advantages over users of virgin resin.
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Rick LeBlanc, EMBA, is the founder and editor of Reusable Packaging News (subscribe to the free newsletter) and editor of Western Pallet Magazine. A supply chain journalist with more than 30 years of experience, he specializes in pallets, reusable packaging, material handling and related operations. Rick is co-author of Pallets: A North American Perspective and Pallets & Progress: A Collected History of Pallets and Palletized Handling 1922–1945. He is also an advisory board member of the Virginia Tech Center for Packaging and Unit Load Design. Read Rick’s full bio.
