NASDAQ$REYN

Reynolds Consumer Products Inc · Q3 2022 earnings

Q3 2022 earnings · · Investor relations

Briefing

Reynolds Consumer Products reported third quarter results, closing the gap between pricing and cost increases, while also building share and delivering earnings in line with expectations.

Reynolds Consumer Products reported a 7% increase in net revenues to $967 million compared to the prior year. Net income was $48 million, a decrease of 27%. The company is focused on margin expansion in the fourth quarter and recovery of pre-pandemic profitability in 2023.

  • Net revenues increased by 7% year-over-year, driven by pricing actions.
  • Net income decreased by 27% year-over-year.
  • Adjusted EBITDA decreased by 12% year-over-year.
  • The company closed the gap between pricing and cost increases.

Headline financials

Total Revenue

$967M

Previous: $905M+6.9%
EPS (adj)

$0.24

Previous: $0.33-27.3%
Adjusted EBITDA

$116M

Previous: $132M-12.1%
Capital Expenditures

-$86M

Previous: -$101M+14.9%
Free Cash Flow

-$38M

Previous: -$35M-8.6%
Net Income

$48M

Previous: $66M-27.3%
Operating Income

$53M

Previous: $73M-27.4%
Gross Profit

$178M

Previous: $182M-2.2%
Cash & Equivalents

$33M

Previous: $70M-52.9%
Total Assets

$4.91B

Previous: $4.73B+3.8%

Revenue & EPS history

Reynolds · Revenue · Quarterly

$967M

Q3 2022+6.9%vs Q3 2021
Beat estimate in 10 of 15 quarters(67%)
ActualEstimate

Revenue by segment

Reynolds · $967M total across 5 segments · Q3 2022

  • Reynolds Cooking & Baking
    $327M-0.3%
  • Hefty Tableware
    $251M+28.1%
  • Hefty Waste & Storage
    $237M+0.0%
  • Presto Products
    $155M+2.6%
  • Unallocated
    -$3M+57.1%

Forward guidance

The Company now expects net revenues to grow approximately 8% for the fiscal year ending December 31, 2022. For the fourth quarter ending December 31, 2022, the Company expects net revenues to grow approximately 9%.

Tailwinds

  • Net revenues to grow approximately 8% for fiscal year 2022.
  • Net Income to be in the range of $264 million to $276 million for fiscal year 2022.
  • Adjusted Net Income to be in the range of $273 million to $285 million for fiscal year 2022.
  • Adjusted EBITDA to be in the range of $560 million to $575 million for fiscal year 2022.
  • Earnings Per Share to be in the range of $1.25 to $1.31 per share for fiscal year 2022.

Headwinds

  • Volume down mid single digits for fiscal year 2022.
  • Net revenues to grow approximately 9% for fourth quarter 2022 driven by price increases and a low to mid single digit volume decline.
  • Net Income to be in the range of $112 million to $124 million for fourth quarter 2022.
  • Adjusted EBITDA to be in the range of $215 million to $230 million for fourth quarter 2022.
  • Earnings Per Share to be in the range of $0.53 to $0.59 per share for fourth quarter 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 Q3 2022

Historical avgQ3 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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