NASDAQ$REYN

Reynolds Consumer Products Inc · Q2 2024 earnings

Q2 2024 earnings · · Investor relations

Briefing

Reported strong financial results for Q2 2024, with retail revenue growth ahead of expectations and increased net income and Adjusted EBITDA.

Reynolds Consumer Products reported Q2 2024 net revenues of $930 million. Retail Net Revenues increased 1% to $892 million. Net Income increased to $97 million, and Adjusted EBITDA increased to $172 million. The company raised its full-year net revenue, Adjusted EBITDA, and net income guidance and reduced net debt leverage to 2.4x at quarter end.

  • Net Revenues reached $930 million, with Retail Net Revenues up 1% to $892 million.
  • Net Income and Adjusted Net Income increased to $97 million compared to $66 million in Q2 2023.
  • Adjusted EBITDA rose to $172 million, up from $150 million in Q2 2023.
  • Earnings Per Share and Adjusted Earnings Per Share both increased to $0.46, compared to $0.32 in Q2 2023.

Headline financials

Total Revenue

$930M

Previous: $940M-1.1%
EPS (adj)

$0.46

Previous: $0.32+43.8%
Capital Expenditures

-$48M

Previous: -$51M+5.9%
Free Cash Flow

$49M

Previous: $15M+226.7%
Net Income

$97M

Previous: $66M+47.0%
Operating Income

$108M

Previous: $90M+20.0%
Gross Profit

$256M

Previous: $228M+12.3%
Cash & Equivalents

$101M

Previous: $83M+21.7%
Total Assets

$4.87B

Previous: $4.88B-0.3%
Stock-Based Comp

$5M

Previous: $3M+66.7%

Revenue & EPS history

Reynolds · Revenue · Quarterly

$930M

Q2 2024-1.1%vs Q2 2023
Beat estimate in 10 of 15 quarters(67%)
ActualEstimate

Revenue by segment

Reynolds · $935M total across 5 segments · Q3 2023

  • Reynolds Cooking & Baking
    $312M-4.6%
  • Hefty Waste & Storage
    $244M+3.0%
  • Hefty Tableware
    $233M-7.2%
  • Presto Products
    $152M-1.9%
  • Unallocated
    -$6M-100.0%

Forward guidance

The Company updates its earnings outlook for the full year as follows: Net Revenues $3,590 to $3,670 million, Net Income and Adj Net Income $346 to $358 million, Adjusted EBITDA $670 to $685 million, Earnings Per Share and Adj Earnings Per Share $1.65 to $1.71 and Net Debt at December 31, 2024 $1.5 to $1.6 billion. The Company introduces its third quarter 2024 outlook as follows: Net Revenues $885 to $915 million, Net Income and Adj Net Income $82 to $90 million, Adjusted EBITDA $165 to $175 million and Earnings Per Share and Adjusted Earnings Per Share $0.39 to $0.43

Tailwinds

  • Retail volume at or above category forecasts
  • Improvements in product mix
  • Reynolds Cooking & Baking business’s recovery of historical earnings
  • Delivery of additional Reyvolution cost savings
  • Approximately $20 million expected reduction in interest expense compared to 2023 net interest expense of $119 million

Headwinds

  • 1% reduction from pricing
  • 2.5% reduction to 0.5% increase from retail volume, including the reversal of a benefit from estimated retailer order timing moving from the third quarter into the second quarter
  • 2% reduction from lower non-retail volume and optimization of the retail product portfolio
  • Commodity rates are expected to remain more stable than in recent years.
  • Operating with discipline in a dynamic consumer environment and plan to continue driving our categories while expanding margins, driving cash flow and increasing financial flexibility.

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 2024

Historical avgQ2 2024

-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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