NASDAQ$REYN
Reynolds Consumer Products Inc · Q2 2023 earnings
Q2 2023 earnings · · Investor relations
Briefing
Reported financial results with leading categories and expanding margins, executing Reynolds Cooking & Baking recovery initiatives, reiterating full year revenue outlook, and updating full year earnings guide.
Reynolds Consumer Products reported a 3% increase in net revenues to $940 million and a 27% increase in net income to $66 million for Q2 2023. Adjusted EBITDA also increased by 27% to $150 million. The company's performance was driven by successful implementation of Reynolds Cooking & Baking recovery initiatives and effective execution across all businesses.
- Net revenues increased by 3% due to higher pricing and stable volume.
- Net income and Adjusted EBITDA increased due to pricing actions and lower operational costs.
- Reynolds Cooking & Baking recovery plan execution led to outstanding results with a 9% increase in net revenues.
- The company is forecasting strong earnings growth for the remainder of the year and has resumed paying down debt.
Headline financials
Revenue & EPS history
Reynolds · Revenue · Quarterly
$940M
Revenue by segment
Reynolds · $940M total across 5 segments · Q2 2023
- Reynolds Cooking & Baking$321M+9.2%34.1%
- Hefty Tableware$251M+4.6%26.7%
- Hefty Waste & Storage$229M-3.8%24.4%
- Presto Products$145M-3.3%15.4%
- Unallocated-$6M-20.0%-0.6%
Forward guidance
The Company expects a 3% to 5% decline in third quarter net revenues consisting of essentially unchanged pricing and 3% to 5% lower volume. The Company expects full-year net revenues to be in line with prior year net revenues, plus or minus 1%, consisting of 2% higher pricing and 2% lower volume at the mid-point of the guide.
Tailwinds
- Reynolds Cooking & Baking is performing well and is on track for earnings consistent with historical levels in the second half of 2023.
- Commodity rates have been consistent with Company expectations since reporting first quarter 2023 results and are expected to remain stable over the balance of the year.
- Consolidated retail volume is estimated to be in line with prior year consolidated retail volume.
- Reynolds Cooking & Baking is performing well and is on track for earnings consistent with historical levels in the second half of 2023.
- Consolidated retail volume is estimated to be in line with prior year consolidated retail volume.
Headwinds
- The Company expects a 3% to 5% decline in third quarter net revenues consisting of essentially unchanged pricing and 3% to 5% lower volume.
- Memorial Day and July Fourth holiday promotions resulted in stronger second quarter shipments and higher household inventories at the start of the third quarter.
- Consolidated non-retail sales are estimated to be down $60 million by comparison to $268 million in the prior year.
- The Company expects a 3% to 5% decline in third quarter net revenues consisting of essentially unchanged pricing and 3% to 5% lower volume.
- Consolidated non-retail sales are estimated to be down $60 million by comparison to $268 million in the prior year.
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 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
| 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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