NASDAQ$REYN
Reynolds Consumer Products Inc · Q2 2021 earnings
Q2 2021 earnings · · Investor relations
Briefing
Second quarter 2021 financial results reported, showing revenue increase but earnings decline due to cost pressures.
Reynolds Consumer Products reported a 6% increase in net revenues to $873 million for Q2 2021. However, net income decreased by 29% to $80 million, and Adjusted EBITDA decreased by 23% to $148 million due to material cost increases outpacing price increases.
- Net revenues increased by 6% to $873 million compared to Q2 prior year.
- Net income decreased by 29% to $80 million.
- Adjusted EBITDA decreased by 23% to $148 million.
- Earnings Per Share was $0.38, and Adjusted Earnings Per Share was $0.39.
Headline financials
Revenue & EPS history
Reynolds · Revenue · Quarterly
$873M
Revenue by segment
Reynolds · $873M total across 5 segments · Q2 2021
- Reynolds Cooking & Baking$303M+2.7%34.7%
- Hefty Waste & Storage$220M+8.4%25.2%
- Hefty Tableware$217M+16.7%24.9%
- Presto Products$142M+2.9%16.3%
- Unallocated-$9M—-1.0%
Forward guidance
The Company continues to expect high single-digit revenue growth for fiscal 2021, underpinned by pricing, at-home consumption, improvements in our Tableware segment as a result of increases in social gatherings, innovation, and retail replenishment.
Tailwinds
- Two rounds of price increases have been successfully implemented across the Company, and a third round has been announced, to be effective during the third quarter.
- The Company is expecting high single-digit revenue growth in its third quarter, reflecting recently implemented price increases and volume anticipated to be similar to Q3 2020 levels.
- Premium innovations are driving improved mix
- Expanded Reyvolution cost savings to further offset cost pressures
- Expects a substantial sequential improvement in profitability in the fourth quarter on the basis of announced pricing and an anticipated easing of commodity rates.
Headwinds
- The Company is facing estimated 2021 cost pressures in excess of $400 million, driven primarily by increases in resin and aluminum.
- The Company expects short-term earnings pressure in the third quarter, primarily driven by increases in resin and aluminum costs in excess of price increases going into effect during the third quarter.
- Lowering expected 2021 earnings to reflect the timing of pricing by comparison to cost increases.
- Volume decline was primarily due to lapping of last year’s elevated consumption for Reynolds Cooking & Baking
- Volume decline was primarily due to the lapping of pantry loading at the onset of COVID-19 for Presto Products
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 Q2 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
| Quarter | Report date | Reaction (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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