Reynolds Consumer Products Reports Third Quarter 2024 Financial Results
Reynolds Consumer Products (REYN) reported Q3 2024 financial results with net revenues of $910 million, down from $935 million in Q3 2023. Despite lower revenues, net income increased 10% to $86 million, and Adjusted EBITDA rose 4% to $171 million. The company's earnings per share improved to $0.41 from $0.37 year-over-year. Operating cash flow reached $307 million in the first nine months of 2024. The company announced planned CEO and CFO transitions, with Lance Mitchell retiring as President and CEO effective January 1, 2025, to be succeeded by Scott E. Huckins. The company updated its full-year 2024 guidance, expecting net revenues between $3,620-$3,660 million.
Reynolds Consumer Products (REYN) ha riportato i risultati finanziari del terzo trimestre 2024 con ricavi netti di 910 milioni di dollari, in calo rispetto ai 935 milioni di dollari del terzo trimestre 2023. Nonostante la diminuzione dei ricavi, l'utile netto è aumentato del 10% a 86 milioni di dollari, e l'EBITDA rettificato è salito del 4% a 171 milioni di dollari. Gli utili per azione della società sono migliorati a 0,41 dollari rispetto a 0,37 dollari dell'anno precedente. Il flusso di cassa operativo ha raggiunto i 307 milioni di dollari nei primi nove mesi del 2024. La società ha annunciato piani per il cambiamento del CEO e del CFO, con Lance Mitchell che si ritirerà da Presidente e CEO a partire dal 1 gennaio 2025, e sarà sostituito da Scott E. Huckins. La società ha aggiornato le previsioni per l'intero anno 2024, aspettandosi ricavi netti tra 3.620 e 3.660 milioni di dollari.
Reynolds Consumer Products (REYN) reportó los resultados financieros del tercer trimestre de 2024 con ingresos netos de 910 millones de dólares, por debajo de los 935 millones de dólares en el tercer trimestre de 2023. A pesar de los menores ingresos, el ingreso neto aumentó un 10% a 86 millones de dólares, y el EBITDA ajustado subió un 4% a 171 millones de dólares. Las ganancias por acción de la empresa mejoraron a 0,41 dólares, frente a 0,37 dólares del año anterior. El flujo de caja operativo alcanzó los 307 millones de dólares en los primeros nueve meses de 2024. La compañía anunció planes para la transición del CEO y CFO, siendo Lance Mitchell quien se retirará como Presidente y CEO a partir del 1 de enero de 2025, siendo sucedido por Scott E. Huckins. La empresa actualizó su guía para todo el año 2024, esperando ingresos netos entre 3,620 y 3,660 millones de dólares.
레놀즈 소비자 제품 (REYN)은 2024년 3분기 재무 결과를 보고하며 순 수익이 9억 1천만 달러로, 2023년 3분기의 9억 3천5백만 달러에서 감소했다고 발표했습니다. 수익이 감소했음에도 불구하고 순이익은 10% 증가하여 8천6백만 달러에 달했고, 조정 EBITDA는 4% 증가하여 1억 7천1백만 달러에 도달했습니다. 회사의 주당 순이익은 작년의 0.37달러에서 0.41달러로 개선되었습니다. 운영 현금 흐름은 2024년 첫 9개월 동안 3억 7백만 달러에 도달했습니다. 회사는 CEO와 CFO의 전환 계획을 발표했으며, 랜스 미첼이 2025년 1월 1일부로 사장 겸 CEO에서 은퇴하고 스캇 E. 허킨스가 후임할 예정입니다. 회사는 2024년 전체 연도 가이드를 업데이트하여 순 수익이 36억 2천만 달러에서 36억 6천만 달러 사이가 될 것으로 예상하고 있습니다.
Reynolds Consumer Products (REYN) a publié les résultats financiers du troisième trimestre 2024, avec des revenus nets de 910 millions de dollars, en baisse par rapport à 935 millions de dollars au troisième trimestre 2023. Malgré la baisse de revenus, le bénéfice net a augmenté de 10 % pour atteindre 86 millions de dollars, et l'EBITDA ajusté a progressé de 4 % à 171 millions de dollars. Le bénéfice par action de l'entreprise s'est amélioré à 0,41 dollar, contre 0,37 dollar l'année précédente. Le flux de trésorerie d'exploitation a atteint 307 millions de dollars au cours des neuf premiers mois de 2024. L'entreprise a annoncé des changements prévus au niveau du PDG et du directeur financier, avec Lance Mitchell prenant sa retraite en tant que Président et PDG, effectif le 1er janvier 2025, pour être succédé par Scott E. Huckins. L'entreprise a mis à jour ses prévisions pour l'année 2024, s'attendant à des revenus nets compris entre 3 620 et 3 660 millions de dollars.
Reynolds Consumer Products (REYN) hat die Finanzergebnisse für das dritte Quartal 2024 veröffentlicht, mit Nettoumsätzen von 910 Millionen Dollar, was einem Rückgang von 935 Millionen Dollar im dritten Quartal 2023 entspricht. Trotz der niedrigeren Umsätze stieg der Nettogewinn um 10% auf 86 Millionen Dollar, und das bereinigte EBITDA nahm um 4% auf 171 Millionen Dollar zu. Der Gewinn pro Aktie verbesserte sich auf 0,41 Dollar, gegenüber 0,37 Dollar im Vorjahr. Der operative Cashflow erreichte in den ersten neun Monaten des Jahres 2024 307 Millionen Dollar. Das Unternehmen kündigte geplante Übergänge des CEO und CFO an, wobei Lance Mitchell am 1. Januar 2025 als Präsident und CEO zurücktritt und von Scott E. Huckins abgelöst wird. Das Unternehmen hat seine Prognose für das Gesamtjahr 2024 aktualisiert und erwartet Nettoumsätze zwischen 3.620 und 3.660 Millionen Dollar.
- Net income increased 10% to $86 million in Q3 2024
- Adjusted EBITDA rose 4% to $171 million
- EPS improved to $0.41 from $0.37 year-over-year
- Strong operating cash flow of $307 million in first nine months
- Reduced Net Debt Leverage from 2.7x to 2.3x
- Made $50M debt prepayment after quarter end
- Net revenues declined to $910 million from $935 million in Q3 2023
- Retail net revenues decreased 3% to $856 million
- Hefty Tableware Adjusted EBITDA decreased $15 million to $26 million
- Full-year revenue guidance indicates continued decline from prior year
Insights
Reynolds Consumer Products delivered a mixed Q3 2024 performance with some notable metrics:
Key positives include strong free cash flow generation (
The announced CEO transition adds some uncertainty, but the internal promotion of CFO Scott Huckins to CEO suggests continuity in strategy execution.
The company's segment performance reveals interesting market dynamics. Hefty Waste & Storage achieved record Q3 revenues, with Hefty Fabuloso® reaching
The strategic focus on sustainable products (Reynolds® Wrap Recycled Foil, PFAS-free bags) aligns with market trends. Product innovations in plant-based and bio-based materials show adaptability to changing consumer preferences. The maintaining of market share in key categories despite volume pressures suggests effective competitive positioning.
Third Quarter Net Revenues, Retail Volume In Line with Expectations
Third Quarter Net Income and Adjusted EBITDA Increased
Strong Free Cash Flow Delivery Continued;
Full Year Net Revenue, Net Income and Adjusted EBITDA Guide Updated
Planned CEO and CFO Transition Announced
Third Quarter 2024 Highlights
-
Net Revenues of
vs.$910 million in Q3 2023$935 million -
Retail Net Revenues decreased
3% to , in line with Company expectations$856 million -
Non-retail Net Revenues increased
to$3 million , exceeding Company expectations$54 million
-
Retail Net Revenues decreased
-
Net Income and Adjusted Net Income of
vs.$86 million in Q3 2023$78 million -
Adjusted EBITDA of
vs.$171 million in Q3 2023$165 million -
Earnings Per Share and Adjusted Earnings Per Share of
vs.$0.41 in Q3 2023$0.37 -
Operating Cash Flow of
in first nine months of 2024$307 million
Retail volume was unchanged and in line with improved category performance after adjusting for a 2-point headwind from product portfolio optimization and shipment timing.
Net Income increased
The Company further reduced Net Debt Leverage1 from 2.7x on December 31, 2023 to 2.3x on September 30, 2024.
“We are building on our leadership across household products and delivered another quarter of strong financial performance as a result,” said Lance Mitchell, President and Chief Executive Officer of Reynolds Consumer Products. “RCP’s business model is a competitive advantage and the trajectory of our commercial and financial trends is strong, making now the right time to implement our planned leadership transition.”
1Net Debt is defined as current portion of long-term debt plus long-term debt less cash and cash equivalents. Net Debt Leverage is defined as Net Debt divided by Trailing Twelve Months Adjusted EBITDA. See “Use of Non-GAAP Financial Measures” for additional information. |
Reynolds Cooking & Baking
-
Net Revenues decreased
to$7 million reflecting a modest decrease in retail Net Revenues, partially offset by a$305 million increase in Non-retail Net Revenues$3 million -
Adjusted EBITDA was unchanged at
$51 million
Adjusted EBITDA was unchanged reflecting decreased operational costs which were fully offset by lower revenue.
Retail volume decreased
The Company advanced its shift to more sustainable offerings with the national launch of Reynolds® Wrap Recycled Foil in new, more sustainable packaging.
The Company once again partnered with Feeding America for Hunger Action Month in September to raise awareness of hunger across the nation. Since the partnership’s inception, Reynolds® has donated approximately 10 million meals through Feeding America.
Hefty Waste & Storage
-
Net Revenues increased
to$4 million , resulting in record third quarter Net Revenues$248 million -
Adjusted EBITDA was unchanged at
$71 million
Adjusted EBITDA was unchanged as the benefit of higher revenue was fully offset by increased advertising investment.
Volume increased
Hefty Fabuloso® delivered another quarter of strong double-digit growth, achieving
The Company expanded its portfolio of Hefty and store brand waste bags with post-consumer recycled materials and began shipping slider bags manufactured without PFAS. Hefty® ReNew™ continued its national expansion, launching in
Hefty Tableware
-
Net Revenues decreased
to$16 million $217 million -
Adjusted EBITDA decreased
to$15 million $26 million
The Adjusted EBITDA decrease was driven by lower volume and pricing, which was primarily related to timing of promotional activities, and increased operational costs.
Tableware volume decreased
With the start of football season, the Company introduced Hefty® Kickoff Cups, a limited-edition giveaway that comes with 32 Hefty Kickoff Cups designed to spark new connections at tail-gate parties and other social gatherings.
Presto Products
-
Net Revenues decreased
to$3 million $149 million -
Adjusted EBITDA increased
to$2 million $33 million
The Adjusted EBITDA increase was driven by product portfolio optimization.
Volume decreased
Product innovations including
Year to Date 2024 Highlights
-
Net Revenues of
vs.$2,675 million in the comparable prior year period$2,750 million -
Retail Net Revenues decreased
2% -
Non-retail Net Revenues decreased to
$131 million
-
Retail Net Revenues decreased
-
Net Income and Adjusted Net Income of
vs.$231 million in the comparable prior year period$161 million -
Adjusted EBITDA of
vs.$465 million in the comparable prior year period$398 million -
Earnings Per Share and Adjusted Earnings Per Share of
vs.$1.10 in the comparable prior year period$0.77
Retail volume outperformed Company expectations, decreasing
Net Income and Adjusted EBITDA increased
Balance Sheet and Cash Flow Highlights
Cash and cash equivalents were
The Company further reduced Net Debt to Trailing Twelve Months Adjusted EBITDA1 from 2.7x on December 31, 2023 to 2.3x on September 30, 2024.
Operating cash flow of
Subsequent to quarter end, the Company made a voluntary principal payment of
Fiscal Year and Fourth Quarter Outlook
The Company updates its earnings outlook for the full year as follows:
|
Prior Full Year 2024 Outlook |
Current Full Year 2024 Outlook |
Net Revenues |
|
|
Net Income and Adj Net Income |
|
|
Adjusted EBITDA |
|
|
Earnings Per Share and Adj Earnings Per Share |
|
|
Net Debt at December 31, 2024 |
|
~ |
The Company guides full-year 2024 Net Revenues to be approximately
The following table sets forth the estimated impact of these factors on our prior 2024 revenue outlook and our current 2024 revenue outlook, as well as the difference in estimated impact between those outlooks.
Net Revenue Full-Year 2024 Guide |
|||||||||||
|
Prior 2024 Outlook |
|
Current 2024 Outlook |
|
Difference between Prior
|
||||||
|
Low |
Mid |
High |
|
Low |
Mid |
High |
|
Low |
Mid |
High |
Pricing |
(1.0)% |
(1.0)% |
(1.0)% |
|
(1.0)% |
(1.0)% |
(1.0)% |
|
—% |
—% |
—% |
Retail Volume |
(1.0)% |
—% |
|
|
(0.5)% |
—% |
|
|
|
—% |
(0.5)% |
Non-Retail Volume & Product Portfolio Optimization |
(2.5)% |
(2.5)% |
(2.5)% |
|
(2.0)% |
(2.0)% |
(2.0)% |
|
|
|
|
The Company forecasts Adjusted EBITDA growth driven by retail volume at or above category forecasts, improvements in product mix, the Reynolds Cooking & Baking business’s recovery of historical earnings and delivery of additional Reyvolution cost savings.
The Company continues to expect the relative contribution of each quarter’s Adjusted EBITDA to the full year’s Adjusted EBITDA returning to historical averages.
Net income growth is forecasted to be driven by the same factors driving Adjusted EBITDA as well as an approximately
The Company introduces its fourth quarter 2024 outlook as follows:
|
Q4 2024 Outlook |
Net Revenues |
|
Net Income and Adj Net Income |
|
Adjusted EBITDA |
|
Earnings Per Share and Adjusted Earnings Per Share |
|
The Company guides fourth quarter 2024 Net Revenues to be approximately
Senior Leadership Changes
Lance Mitchell has elected to retire as President and Chief Executive Officer of the Company and as a member of the Company’s Board of Directors (“Board”), effective January 1, 2025.
The Company’s Board has appointed Scott E. Huckins as the Company’s President and Chief Executive Officer and elected Mr. Huckins a member of the Board to fill the vacancies resulting from Mr. Mitchell’s departure from such positions, effective January 1, 2025.
The Company’s Board has appointed Nathan D. Lowe as Vice President, Chief Financial Officer and Treasurer, to fill the vacancy resulting from Mr. Huckins’ appointment as President and Chief Executive Officer, effective January 1, 2025. Mr. Lowe currently serves as the Company’s Senior Vice President of Financial Planning & Analysis and has led the FP&A group since January 1, 2019.
Mr. Mitchell will remain with the Company as an employee in an advisory role after January 1, 2025, until his retirement on July 31, 2025.
“RCP continues to deliver strong results against the commercial and financial objectives established at the start of the year, and our capital allocation priorities are unchanged,” said Scott Huckins, Chief Financial Officer. “We are investing in innovation, new business and Reyvolution cost savings to drive long-term value and I am humbled to follow Lance as the next President and Chief Executive Officer of Reynolds Consumer Products.”
Quarterly Dividend
The Company’s Board of Directors has approved a quarterly dividend of
Earnings Webcast
The Company will host a live webcast this morning at 7:00 a.m. CT (8:00 a.m. ET). A link to the webcast and all related earnings materials will be available on the Company’s Investor Relations website at https://investors.reynoldsconsumerproducts.com.
About Reynolds Consumer Products Inc.
Reynolds Consumer Products is a leading provider of household products that simplify daily life so consumers can enjoy what matters most. With a presence in
Forward Looking Statements
This press release contains statements reflecting our views about our future performance that constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, including our fourth quarter and fiscal year 2024 guidance. In some cases, you can identify these statements by forward-looking words such as “may,” “might,” “will,” “should,” “expects,” “intends,” “outlook,” “forecast”, “position”, “committed,” “plans,” “anticipates,” “believes,” “estimates,” “predicts,” “model”, “assumes,” “confident,” “look forward,” “potential” “on track”, or “continue,” the negative of these terms and other comparable terminology. These forward-looking statements, which are subject to risks, uncertainties and assumptions about us, may include projections of our future financial performance, our anticipated growth and recovery of profitability, management of costs and other disruptions and other strategies, and anticipated trends in our business, including expected levels of commodity costs and volume. These statements are only predictions based on our current expectations and projections about future events. There are important factors that could cause our actual results, level of activity, performance or achievements to differ materially from the results, level of activity, performance or achievements expressed or implied by the forward-looking statements, including but not limited to the risk factors set forth in our most recent Annual Report on Form 10-K and in our Quarterly Reports on Form 10-Q.
For additional information on these and other factors that could cause our actual results to materially differ from those set forth herein, please see our filings with the Securities and Exchange Commission, including our most recent Annual Report on Form 10-K and subsequent filings. Investors are cautioned not to place undue reliance on any such forward-looking statements, which speak only as of the date they are made. The Company undertakes no obligation to update any forward-looking statement, whether as a result of new information, future events or otherwise.
REYN-F
Reynolds Consumer Products Inc. |
|||||||||||
Consolidated Statements of Income |
|||||||||||
(amounts in millions, except for per share data) |
|||||||||||
|
For the Three Months Ended |
|
For the Nine Months Ended |
||||||||
|
September 30, |
|
September 30, |
||||||||
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
Net revenues |
$ |
892 |
|
$ |
914 |
|
$ |
2,618 |
|
$ |
2,689 |
Related party net revenues |
|
18 |
|
|
21 |
|
|
57 |
|
|
61 |
Total net revenues |
|
910 |
|
|
935 |
|
|
2,675 |
|
|
2,750 |
Cost of sales |
|
(671) |
|
|
(686) |
|
|
(1,977) |
|
|
(2,117) |
Gross profit |
|
239 |
|
|
249 |
|
|
698 |
|
|
633 |
Selling, general and administrative expenses |
|
(101) |
|
|
(115) |
|
|
(329) |
|
|
(327) |
Other income (expense), net |
|
— |
|
|
— |
|
|
— |
|
|
— |
Income from operations |
|
138 |
|
|
134 |
|
|
369 |
|
|
306 |
Interest expense, net |
|
(25) |
|
|
(31) |
|
|
(76) |
|
|
(91) |
Income before income taxes |
|
113 |
|
|
103 |
|
|
293 |
|
|
215 |
Income tax expense |
|
(27) |
|
|
(25) |
|
|
(62) |
|
|
(54) |
Net income |
$ |
86 |
|
$ |
78 |
|
$ |
231 |
|
$ |
161 |
|
|
|
|
|
|
|
|
||||
Earnings per share: |
|
|
|
|
|
|
|
||||
Basic |
$ |
0.41 |
|
$ |
0.37 |
|
$ |
1.10 |
|
$ |
0.77 |
Diluted |
$ |
0.41 |
|
$ |
0.37 |
|
$ |
1.10 |
|
$ |
0.77 |
|
|
|
|
|
|
|
|
||||
Weighted average shares outstanding: |
|
|
|
|
|
|
|
||||
Basic |
|
210.1 |
|
|
210.0 |
|
|
210.1 |
|
|
210.0 |
Diluted |
|
210.3 |
|
|
210.0 |
|
|
210.2 |
|
|
210.0 |
Reynolds Consumer Products Inc. |
|||||
Consolidated Balance Sheets |
|||||
(amounts in millions, except for per share data) |
|||||
|
(Unaudited) |
|
|
||
|
As of September 30,
|
|
As of December 31,
|
||
Assets |
|
|
|
||
Cash and cash equivalents |
$ |
96 |
|
$ |
115 |
Accounts receivable (net of allowance for doubtful accounts of |
|
339 |
|
|
347 |
Other receivables |
|
3 |
|
|
7 |
Related party receivables |
|
6 |
|
|
7 |
Inventories |
|
624 |
|
|
524 |
Other current assets |
|
37 |
|
|
41 |
Total current assets |
|
1,105 |
|
|
1,041 |
Property, plant and equipment (net of accumulated depreciation of |
|
734 |
|
|
732 |
Operating lease right-of-use assets, net |
|
74 |
|
|
56 |
Goodwill |
|
1,895 |
|
|
1,895 |
Intangible assets, net |
|
980 |
|
|
1,001 |
Other assets |
|
55 |
|
|
55 |
Total assets |
$ |
4,843 |
|
$ |
4,780 |
Liabilities |
|
|
|
||
Accounts payable |
$ |
335 |
|
$ |
219 |
Related party payables |
|
28 |
|
|
34 |
Current operating lease liabilities |
|
19 |
|
|
16 |
Income taxes payable |
|
1 |
|
|
22 |
Accrued and other current liabilities |
|
160 |
|
|
187 |
Total current liabilities |
|
543 |
|
|
478 |
Long-term debt |
|
1,735 |
|
|
1,832 |
Long-term operating lease liabilities |
|
59 |
|
|
42 |
Deferred income taxes |
|
344 |
|
|
357 |
Long-term postretirement benefit obligation |
|
16 |
|
|
16 |
Other liabilities |
|
81 |
|
|
72 |
Total liabilities |
$ |
2,778 |
|
$ |
2,797 |
Stockholders’ equity |
|
|
|
||
Common stock, |
|
— |
|
|
— |
Additional paid-in capital |
|
1,409 |
|
|
1,396 |
Accumulated other comprehensive income |
|
34 |
|
|
50 |
Retained earnings |
|
622 |
|
|
537 |
Total stockholders’ equity |
|
2,065 |
|
|
1,983 |
Total liabilities and stockholders’ equity |
$ |
4,843 |
|
$ |
4,780 |
Reynolds Consumer Products Inc. |
|||||
Consolidated Statements of Cash Flows |
|||||
(amounts in millions) |
|||||
|
Nine Months Ended
|
||||
|
|
2024 |
|
|
2023 |
Cash provided by operating activities |
|
|
|
||
Net income |
$ |
231 |
|
$ |
161 |
Adjustments to reconcile net income to operating cash flows: |
|
|
|
||
Depreciation and amortization |
|
96 |
|
|
92 |
Deferred income taxes |
|
(10) |
|
|
(3) |
Stock compensation expense |
|
14 |
|
|
10 |
Change in assets and liabilities: |
|
|
|
||
Accounts receivable, net |
|
8 |
|
|
3 |
Other receivables |
|
4 |
|
|
11 |
Related party receivables |
|
1 |
|
|
(2) |
Inventories |
|
(100) |
|
|
146 |
Accounts payable |
|
119 |
|
|
(5) |
Related party payables |
|
(6) |
|
|
(16) |
Income taxes payable / receivable |
|
(20) |
|
|
(11) |
Accrued and other current liabilities |
|
(26) |
|
|
39 |
Other assets and liabilities |
|
(4) |
|
|
(2) |
Net cash provided by operating activities |
|
307 |
|
|
423 |
Cash used in investing activities |
|
|
|
||
Acquisition of property, plant and equipment |
|
(79) |
|
|
(77) |
Net cash used in investing activities |
|
(79) |
|
|
(77) |
Cash used in financing activities |
|
|
|
||
Repayment of long-term debt |
|
(100) |
|
|
(113) |
Dividends paid |
|
(144) |
|
|
(144) |
Other financing activities |
|
(3) |
|
|
(3) |
Net cash used in financing activities |
|
(247) |
|
|
(260) |
Net (decrease) increase in cash and cash equivalents |
|
(19) |
|
|
86 |
Cash and cash equivalents at beginning of period |
|
115 |
|
|
38 |
Cash and cash equivalents at end of period |
$ |
96 |
|
$ |
124 |
|
|
|
|
||
Cash paid: |
|
|
|
||
Interest - long-term debt, net of interest rate swaps |
|
76 |
|
|
86 |
Income taxes |
|
91 |
|
|
65 |
Reynolds Consumer Products Inc. |
|||||||||||||||||
Segment Results |
|||||||||||||||||
(amounts in millions) |
|||||||||||||||||
|
Reynolds
|
|
Hefty
|
|
Hefty
|
|
Presto
|
|
Unallocated(1) |
|
Total |
||||||
Revenues |
|
||||||||||||||||
Three Months Ended September 30, 2024 |
$ |
305 |
|
$ |
248 |
|
$ |
217 |
|
$ |
149 |
|
$ |
(9) |
|
$ |
910 |
Three Months Ended September 30, 2023 |
|
312 |
|
|
244 |
|
|
233 |
|
|
152 |
|
|
(6) |
|
|
935 |
Nine Months Ended September 30, 2024 |
|
873 |
|
|
715 |
|
|
667 |
|
|
443 |
|
|
(23) |
|
|
2,675 |
Nine Months Ended September 30, 2023 |
|
916 |
|
|
705 |
|
|
708 |
|
|
441 |
|
|
(20) |
|
|
2,750 |
Adjusted EBITDA |
|
|
|
|
|
|
|
|
|
|
|
||||||
Three Months Ended September 30, 2024 |
$ |
51 |
|
$ |
71 |
|
$ |
26 |
|
$ |
33 |
|
$ |
(10) |
|
$ |
171 |
Three Months Ended September 30, 2023 |
|
51 |
|
|
71 |
|
|
41 |
|
|
31 |
|
|
(29) |
|
|
165 |
Nine Months Ended September 30, 2024 |
|
140 |
|
|
205 |
|
|
95 |
|
|
100 |
|
|
(75) |
|
|
465 |
Nine Months Ended September 30, 2023 |
|
94 |
|
|
188 |
|
|
117 |
|
|
78 |
|
|
(79) |
|
|
398 |
(1) The unallocated net revenues include elimination of inter-segment revenues and other revenue adjustments. The unallocated Adjusted EBITDA represents the combination of corporate expenses which are not allocated to our segments and other unallocated revenue adjustments. |
Components of Change in Net Revenues for the Three Months Ended September 30, 2024 vs. the Three Months Ended September 30, 2023
|
Price |
|
Volume/Mix |
|
Total |
|
||
|
|
|
Retail |
|
Non-Retail |
|
|
|
Reynolds Cooking & Baking |
— |
% |
(3) |
% |
1 |
% |
(2) |
% |
Hefty Waste & Storage |
— |
% |
2 |
% |
— |
% |
2 |
% |
Hefty Tableware |
(3) |
% |
(4) |
% |
— |
% |
(7) |
% |
Presto Products |
— |
% |
(2) |
% |
— |
% |
(2) |
% |
Total RCP |
(1) |
% |
(2) |
% |
— |
% |
(3) |
% |
Components of Change in Net Revenues for the Nine Months Ended September 30, 2024 vs. the Nine Months Ended September 30, 2023
|
Price |
|
Volume/Mix |
|
Total |
|
||
|
|
|
Retail |
|
Non-Retail |
|
|
|
Reynolds Cooking & Baking |
— |
% |
(2) |
% |
(3) |
% |
(5) |
% |
Hefty Waste & Storage |
1 |
% |
— |
% |
— |
% |
1 |
% |
Hefty Tableware |
(2) |
% |
(4) |
% |
— |
% |
(6) |
% |
Presto Products |
1 |
% |
(1) |
% |
— |
% |
— |
% |
Total RCP |
— |
% |
(2) |
% |
(1) |
% |
(3) |
% |
Use of Non-GAAP Financial Measures
We use non-GAAP financial measures “Adjusted EBITDA,” “Adjusted Net Income,” “Adjusted Earnings Per Share,” “Net Debt” and “Net Debt to Trailing Twelve Months Adjusted EBITDA,” in evaluating our past results and future prospects. We define Adjusted EBITDA as net income calculated in accordance with GAAP, plus the sum of income tax expense, net interest expense, depreciation and amortization and further adjusted to exclude certain non-recurring items, if applicable. We define Adjusted Net Income and Adjusted Earnings Per Share (“Adjusted EPS”) as Net Income and Earnings Per Share (“EPS”) calculated in accordance with GAAP, plus the sum of certain non-recurring items, if applicable. We define Net Debt as the current portion of long-term debt plus long-term debt less cash and cash equivalents. We define Net Debt to Trailing Twelve Months Adjusted EBITDA as Net Debt (as defined above) as of the end of the period to Adjusted EBITDA (as defined above) for the period.
We present Adjusted EBITDA because it is a key measure used by our management team to evaluate our operating performance, generate future operating plans and make strategic decisions. In addition, our chief operating decision maker uses Adjusted EBITDA of each reportable segment to evaluate the operating performance of such segments. We use Adjusted Net Income and Adjusted Earnings Per Share as supplemental measures to evaluate our business’ performance in a way that also considers our ability to generate profit without the impact of certain items. We use Net Debt as we believe it is a more representative measure of our liquidity. We use Net Debt to Trailing Twelve Months Adjusted EBITDA because it reflects our ability to service our debt obligations. Accordingly, we believe presenting these measures provide useful information to investors and others in understanding and evaluating our operating results in the same manner as our management team and board of directors.
Non-GAAP information should be considered as supplemental in nature and is not meant to be considered in isolation or as a substitute for the related financial information prepared in accordance with GAAP. In addition, our non-GAAP financial measures may not be the same as or comparable to similar non-GAAP financial measures presented by other companies.
Guidance for fiscal year and fourth quarter 2024, where adjusted, is provided on a non-GAAP basis. The Company cannot reconcile its expected Net Debt at December 31, 2024 to expected total debt without reasonable effort because certain items that impact total debt and other reconciling measures are out of the Company’s control and/or cannot be reasonably predicted at this time, to which unavailable information could have a significant impact on the Company’s GAAP financial results.
Please see reconciliations of Non-GAAP measures used in this release (with the exception of our December 31, 2024 Net Debt outlook, as described above) to the most directly comparable GAAP measures, beginning on the following page.
Reynolds Consumer Products Inc. |
|||||||||||
Reconciliation of Net Income to Adjusted EBITDA |
|||||||||||
(amounts in millions) |
|||||||||||
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
||||||||
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
(in millions) |
|
(in millions) |
||||||||
Net income – GAAP |
$ |
86 |
|
$ |
78 |
|
$ |
231 |
|
$ |
161 |
Income tax expense |
|
27 |
|
|
25 |
|
|
62 |
|
|
54 |
Interest expense, net |
|
25 |
|
|
31 |
|
|
76 |
|
|
91 |
Depreciation and amortization |
|
33 |
|
|
31 |
|
|
96 |
|
|
92 |
Adjusted EBITDA (Non-GAAP) |
$ |
171 |
|
$ |
165 |
|
$ |
465 |
|
$ |
398 |
Reynolds Consumer Products Inc. |
|||||
Reconciliation of Trailing Twelve Months Net Income to Trailing Twelve Months Adjusted EBITDA |
|||||
(amounts in millions) |
|||||
|
Twelve Months Ended
|
|
Twelve Months Ended
|
||
Net income – GAAP |
$ |
368 |
|
$ |
298 |
Income tax expense |
|
103 |
|
|
95 |
Interest expense, net |
|
104 |
|
|
119 |
Depreciation and amortization |
|
128 |
|
|
124 |
Adjusted EBITDA (Non-GAAP) |
$ |
703 |
|
$ |
636 |
Reynolds Consumer Products Inc. |
||
Reconciliation of Total Debt to Net Debt and Calculation of Net Debt to Trailing Twelve Months Adjusted EBITDA |
||
(amounts in millions, except for Net Debt to Trailing Twelve Months Adjusted EBITDA) |
||
As of September 30, 2024 |
|
|
Current portion of long-term debt |
$ |
— |
Long-term debt |
|
1,735 |
Total debt |
|
1,735 |
Cash and cash equivalents |
|
(96) |
Net debt (Non-GAAP) |
$ |
1,639 |
For the twelve months ended September 30, 2024 |
|
|
Adjusted EBITDA (Non-GAAP) |
$ |
703 |
|
|
|
Net Debt to Trailing Twelve Months Adjusted EBITDA |
2.3x |
As of December 31, 2023 |
|
|
Current portion of long-term debt |
$ |
— |
Long-term debt |
|
1,832 |
Total debt |
|
1,832 |
Cash and cash equivalents |
|
(115) |
Net debt (Non-GAAP) |
$ |
1,717 |
For the twelve months ended December 31, 2023 |
|
|
Adjusted EBITDA (Non-GAAP) |
$ |
636 |
|
|
|
Net Debt to Trailing Twelve Months Adjusted EBITDA |
2.7x |
|
Reynolds Consumer Products Inc. |
|||||||||||
Reconciliation of Q4 2024 and FY2024 Net Income Guidance to Adjusted EBITDA Guidance |
|||||||||||
(amounts in millions) |
|||||||||||
|
Three Months Ended December 31, 2024 |
|
Year Ended December 31, 2024 |
||||||||
|
Low |
|
High |
|
Low |
|
High |
||||
Net income (GAAP) |
$ |
117 |
|
$ |
125 |
|
$ |
348 |
|
$ |
356 |
Income tax expense |
|
38 |
|
|
40 |
|
|
99 |
|
|
101 |
Interest expense, net |
|
22 |
|
|
22 |
|
|
98 |
|
|
98 |
Depreciation and amortization |
|
31 |
|
|
31 |
|
|
128 |
|
|
128 |
Adjusted EBITDA |
$ |
208 |
|
$ |
218 |
|
$ |
673 |
|
$ |
683 |
View source version on businesswire.com: https://www.businesswire.com/news/home/20241030898015/en/
Investor Contact
Mark Swartzberg
Mark.Swartzberg@reynoldsbrands.com
(847) 482-4081
Source: Reynolds Consumer Products Inc.
FAQ
What were Reynolds Consumer Products (REYN) Q3 2024 earnings per share?
Who will be the new CEO of Reynolds Consumer Products (REYN) in 2025?
What is Reynolds Consumer Products (REYN) revenue guidance for 2024?