NASDAQ$REYN

Reynolds Consumer Products Inc · Q1 2021 earnings

Q1 2021 earnings · · Investor relations

Briefing

Reynolds reported Q1 2021 financial results with net revenues up 4% and increasing forecast for topline growth.

Reynolds Consumer Products reported a strong first quarter with net revenues of $757 million, a 4% increase over the prior year. The company's performance was driven by price increases and lower trade promotion, although February storms impacted the Hefty Waste & Storage and Presto Products segments. The company is increasing its full year revenue outlook, expecting high single digit revenue growth.

  • Net revenues increased by 4% to $757 million compared to Q1 prior year.
  • Net income was reported at $74 million, with an adjusted net income of $76 million.
  • Earnings per share (EPS) reached $0.35, with an adjusted EPS of $0.36.
  • Adjusted EBITDA increased by 4% to $140 million compared to Q1 prior year.

Headline financials

Total Revenue

$757M

Previous: $730M+3.7%
EPS (adj)

$0.36

Previous: $0.30+20.0%
Adjusted EBITDA

$140M

Previous: $135M+3.7%
Capital Expenditures

-$23M

Previous: -$23M+0.0%
Free Cash Flow

$51M

Previous: $3M+1600.0%
Net Income

$74M

Previous: $26M+184.6%
Operating Income

$85M

Previous: $68M+25.0%
Gross Profit

$192M

Previous: $189M+1.6%
Cash & Equivalents

$144M

Previous: $200M-28.0%
Total Assets

$4.64B

Previous: $4.59B+1.1%
Stock-Based Comp

$2M

Previous: $1M+100.0%

Revenue & EPS history

Reynolds · Revenue · Quarterly

$757M

Q1 2021+3.7%vs Q1 2020
Beat estimate in 8 of 12 quarters(67%)
ActualEstimate

Revenue by segment

Reynolds · $757M total across 5 segments · Q1 2021

  • Reynolds Cooking & Baking
    $272M+11.9%
  • Hefty Waste & Storage
    $194M+1.0%
  • Hefty Tableware
    $170M-4.5%
  • Presto Products
    $126M-0.8%
  • Unallocated
    -$5M+50.0%

Forward guidance

The Company is increasing its full year revenue outlook, expecting high single digit revenue growth underpinned by anticipated continued elevated consumption, innovation, retail replenishment, and pricing. With additional price increases going into effect during the second quarter, the Company is expecting high single digit revenue growth in its second quarter.

Tailwinds

  • Anticipated continued elevated consumption.
  • Innovation.
  • Retail replenishment.
  • Pricing actions.
  • Second round of price increases underway.

Headwinds

  • Estimated in-year cost pressures exceeding $300 million from increases in commodity and logistics rates.
  • Global supply chain challenges.
  • Short-term implications of pricing in an environment when costs are still increasing.
  • Considerable margin pressure expected in the second quarter.
  • Continuing impacts from February’s storms.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2021

Historical avgQ1 2021

-0.7%

Avg return

Earnings day

-0.5%

Avg return

5 days after

-1.1%

Avg return

30 days after

41%

12 / 29 earnings

Positive

+9.6%

Q4 2025

Best reaction

-9.0%

Q2 2019

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-1.8%+1.5%+5.4%
Q4 2025+9.6%+4.5%+4.1%
Q3 2025+5.1%+3.5%+5.4%
Q1 2025-3.0%-1.7%-6.8%
Q4 2024-4.2%-11.5%-12.1%
Q3 2024-8.7%-8.7%-6.2%
Q2 2024+5.2%+4.8%+13.4%
Q1 2024+3.0%+2.1%-1.6%
Q4 2023+2.5%+2.5%+4.1%
Q3 2023+5.3%+3.7%+2.1%
Q2 2023+1.5%+1.8%-5.6%
Q1 2023+6.2%+3.3%+1.4%
Q4 2022-3.4%-2.6%-8.4%
Q3 2022-7.6%-3.1%+0.5%
Q2 2022-3.6%-3.0%-5.5%
Q1 2022-2.8%-0.5%-9.2%
Q4 2021+2.0%+3.6%+0.9%
Q3 2021+2.8%+3.1%+4.6%
Q2 2021-2.1%-2.5%-1.3%
Q1 2021+0.1%+3.1%-0.7%
Q4 2018-0.3%+0.1%+2.8%
Q4 2020-3.0%-2.8%-1.9%
Q3 2019-2.3%-1.6%-1.4%
Q3 2020+0.3%+3.0%+3.2%
Q2 2020-9.0%-4.4%-8.3%
Q2 2019-9.0%-4.4%-8.3%
Q1 2019-1.1%+1.4%-2.9%
Q1 2020-1.1%+1.4%-2.9%
Q4 2019-2.0%-11.3%+3.2%

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