NASDAQ$REYN

Reynolds Consumer Products Inc · Q1 2023 earnings

Q1 2023 earnings · · Investor relations

Briefing

Reported financial results for the first quarter, with results in-line with expectations and reaffirming the full year guide.

Reynolds Consumer Products reported a 3% increase in net revenues to $874 million in Q1 2023. Net income decreased to $17 million, and adjusted EBITDA decreased to $82 million. The company reiterates its outlook for the full year and introduces its second quarter 2023 outlook.

  • Net revenues increased by 3% to $874 million compared to the prior year.
  • Net income was $17 million, down from $52 million in Q1 2022.
  • Adjusted EBITDA was $82 million, compared to $112 million in Q1 2022.
  • The company reaffirms its full-year guidance.

Headline financials

Total Revenue

$874M

Previous: $845M+3.4%
EPS (adj)

$0.08

Previous: $0.26-69.2%
Adjusted EBITDA

$82M

No prior period
Capital Expenditures

-$22M

Previous: -$28M+21.4%
Free Cash Flow

-$5M

Previous: $24M-120.8%
Net Income

$17M

Previous: $52M-67.3%
Operating Income

$22M

Previous: $52M-57.7%
Gross Profit

$155M

Previous: $168M-7.7%
Cash & Equivalents

$50M

Previous: $101M-50.5%
Total Assets

$4.87B

Previous: $4.81B+1.1%
Stock-Based Comp

$3M

Previous: $2M+50.0%

Revenue & EPS history

Reynolds · Revenue · Quarterly

$874M

Q1 2023+3.4%vs Q1 2022
Beat estimate in 10 of 15 quarters(67%)
ActualEstimate

Revenue by segment

Reynolds · $874M total across 5 segments · Q1 2023

  • Reynolds Cooking & Baking
    $283M+5.6%
  • Hefty Waste & Storage
    $233M+2.2%
  • Hefty Tableware
    $224M+6.7%
  • Presto Products
    $144M+2.1%
  • Unallocated
    -$10M-400.0%

Forward guidance

The Company reiterates its outlook for the full year and introduces its second quarter 2023 outlook as follows:

Tailwinds

  • We expect to further recover pre-pandemic profitability in 2023 driven by improving performance for Reynolds Cooking & Baking
  • We expect continued solid performance for Hefty Waste & Storage, Hefty Tableware and Presto.
  • Commodity rates are assumed to be relatively stable versus end of April levels.
  • We expect flat to 2% top-line growth and margin expansion in the second quarter, driven partly by improving Reynolds Cooking & Baking margins
  • We expect to increase advertising and trade investment in 2023 while also paying down debt, driven by earnings growth, increased balance sheet efficiency and continued capital spending discipline.

Headwinds

  • The carryover of higher cost aluminum
  • The impact of operational inefficiencies in Reynolds Cooking & Baking are expected to impact second quarter results, though to a lesser extent than in the first quarter.
  • Net revenues Flat +/- 1% growth
  • Net income $274 to $296 million
  • Earnings per share $1.30 to $1.41

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 2023

Historical avgQ1 2023

-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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