NASDAQ$REYN

Reynolds Consumer Products Inc · Q2 2022 earnings

Q2 2022 earnings · · Investor relations

Briefing

Reported financial results for the second quarter of 2022.

Reynolds Consumer Products reported a 5% increase in net revenues compared to the second quarter of the prior year, driven by price increases that were partially offset by a decline in volume. Net income decreased by 35% year-over-year to $52 million, while Adjusted EBITDA decreased by 20% to $118 million due to lower volume and higher costs, which were significantly offset by price increases.

  • Net Revenues increased by 5% compared to Q2 prior year.
  • Net Income was $52 million, while Adjusted Net Income was $54 million.
  • Adjusted EBITDA was $118 million.
  • Earnings Per Share was $0.25, with Adjusted Earnings Per Share at $0.26.

Headline financials

Total Revenue

$917M

Previous: $873M+5.0%
EPS (adj)

$0.26

Previous: $0.39-33.3%
Capital Expenditures

-$56M

Previous: -$73M+23.3%
Free Cash Flow

-$4M

Previous: $7M-157.1%
Net Income

$52M

Previous: $80M-35.0%
Operating Income

$57M

Previous: $90M-36.7%
Gross Profit

$184M

Previous: $208M-11.5%
Cash & Equivalents

$101M

Previous: $49M+106.1%
Total Assets

$4.86B

Previous: $4.7B+3.4%
Stock-Based Comp

$2M

Previous: $1M+100.0%

Revenue & EPS history

Reynolds · Revenue · Quarterly

$917M

Q2 2022+5%vs Q2 2021
Beat estimate in 10 of 15 quarters(67%)
ActualEstimate

Revenue by segment

Reynolds · $917M total across 5 segments · Q2 2022

  • Reynolds Cooking & Baking
    $294M-3.0%
  • Hefty Tableware
    $240M+10.6%
  • Hefty Waste & Storage
    $238M+8.2%
  • Presto Products
    $150M+5.6%
  • Unallocated
    -$5M+44.4%

Forward guidance

The Company now expects net revenues to be in the range of 8% to 11% growth. Net Income to be in the range of $269 million to $292 million; Adjusted Net Income to be in the range of $278 million to $301 million. Adjusted EBITDA to be in the range of $560 million to $590 million. Earnings Per Share to be in the range of $1.28 to $1.39 per share; Adjusted Earnings Per Share to be in the range of $1.32 to $1.43 per share.

Tailwinds

  • Net revenues to grow 8% to 12% in Q3 2022.
  • Net revenues to grow 9% to 17% in Q4 2022.
  • Net Income to be in the range of $43 million to $51 million in Q3 2022.
  • Net Income to be in the range of $122 million to $137 million in Q4 2022.
  • Adjusted EBITDA to be in the range of $110 million to $120 million in Q3 2022.

Headwinds

  • Volume down mid single digits for full year 2022
  • Estimated low to mid single digit volume decline in Q3 2022
  • Flat to slightly down volume in Q4 2022
  • Company estimates 2022 cost pressures of approximately $525 million
  • Assumes additional elasticity to its expectations from May 2022

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 2022

Historical avgQ2 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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