NASDAQ$REYN

Reynolds Consumer Products Inc · Q1 2022 earnings

Q1 2022 earnings · · Investor relations

Briefing

Reported solid first quarter results driven by price increases, while managing cost pressures and maintaining strong market share.

Reynolds Consumer Products reported a 12% increase in net revenues to $845 million, driven by price increases. Net income decreased by 30% to $52 million, and Adjusted EBITDA decreased by 20% to $112 million due to higher costs and lower volume, which were significantly offset by price increases.

  • Net revenues increased 12% year-over-year to $845 million.
  • Net income was $52 million, a decrease of 30% compared to the previous year.
  • Adjusted EBITDA was $112 million, a decrease of 20% compared to the previous year.
  • The company is prioritizing Reyvolution cost savings initiatives.

Headline financials

Total Revenue

$845M

Previous: $757M+11.6%
EPS (adj)

$0.26

Previous: $0.36-27.8%
Capital Expenditures

-$28M

Previous: -$23M-21.7%
Free Cash Flow

$24M

Previous: $51M-52.9%
Net Income

$52M

Previous: $74M-29.7%
Operating Income

$52M

Previous: $85M-38.8%
Gross Profit

$168M

Previous: $192M-12.5%
Cash & Equivalents

$101M

Previous: $144M-29.9%
Total Assets

$4.81B

Previous: $4.64B+3.7%
Stock-Based Comp

$2M

Previous: $2M+0.0%

Revenue & EPS history

Reynolds · Revenue · Quarterly

$845M

Q1 2022+11.6%vs Q1 2021
Beat estimate in 9 of 13 quarters(69%)
ActualEstimate

Revenue by segment

Reynolds · $845M total across 5 segments · Q1 2022

  • Reynolds Cooking & Baking
    $268M-1.5%
  • Hefty Waste & Storage
    $228M+17.5%
  • Hefty Tableware
    $210M+23.5%
  • Presto Products
    $141M+11.9%
  • Unallocated
    -$2M+60.0%

Forward guidance

The Company is updating expected performance within previously stated ranges. Net revenues to be at the high end of the range of 9% to 12% growth. Net Income to be near the low end of the range of $319 million to $349 million. Adjusted EBITDA to be near the low end of the range of $615 million to $655 million. Earnings Per Share to be near the low end of the range of $1.52 to $1.66 per share.

Tailwinds

  • Net revenues to be at the high end of the range of 9% to 12% growth on $3,556 million in the prior year driven by price increases
  • Net Income to be in the range of $47 million to $55 million for Q2 2022
  • Adjusted Net Income to be in the range of $49 million to $57 million for Q2 2022
  • Adjusted EBITDA to be in the range of $110 million to $120 million for Q2 2022
  • Earnings Per Share to be in the range of $0.22 to $0.26 per share for Q2 2022

Headwinds

  • Net Income to be near the low end of the range of $319 million to $349 million
  • Adjusted Net Income to be near the low end of the range of $327 million to $357 million
  • Adjusted EBITDA to be near the low end of the range of $615 million to $655 million
  • Earnings Per Share to be near the low end of the range of $1.52 to $1.66 per share
  • The Company estimates 2022 cost pressures of approximately $450 million (previously $400 million).

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 2022

Historical avgQ1 2022

-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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