NASDAQ$REYN
Reynolds Consumer Products Inc · Q3 2023 earnings
Q3 2023 earnings · · Investor relations
Briefing
Reported third quarter financial results with accelerating margins, updated earnings estimates, strong cash flow generation, and improved leverage.
Reynolds Consumer Products reported a 3% decrease in net revenues to $935 million, but net income increased by 63% to $78 million. Adjusted EBITDA rose by 42% to $165 million. The company's performance was driven by pricing actions and lower operational costs.
- Net revenues decreased by 3% to $935 million compared to Q3 2022.
- Net income increased by 63% to $78 million compared to Q3 2022.
- Adjusted EBITDA increased by 42% to $165 million compared to Q3 2022.
- Earnings per share increased by 61% to $0.37 compared to Q3 2022.
Headline financials
Revenue & EPS history
Reynolds · Revenue · Quarterly
$935M
Revenue by segment
Reynolds · $935M total across 5 segments · Q3 2023
- Reynolds Cooking & Baking$312M-4.6%33.4%
- Hefty Waste & Storage$244M+3.0%26.1%
- Hefty Tableware$233M-7.2%24.9%
- Presto Products$152M-1.9%16.3%
- Unallocated-$6M-100.0%-0.6%
Forward guidance
The Company expects fourth quarter net revenues to be approximately 7% to 9% lower than prior year net revenues of $1,089 million, consisting of 2% lower pricing and 5% to 7% lower volume. The Company expects full-year net revenues to be approximately 2% lower than prior year net revenues of $3,817 million, consisting of 2% higher pricing and 4% lower volume.
Tailwinds
- Consolidated retail volume is estimated to be down 2% to 4%, consisting of stable to growing volume in the Company’s three largest categories (aluminum foil, waste bags and food bags) and lower disposable tableware volume driven by category elasticity.
- Hefty is holding share in relevant disposable tableware segments and is stimulating consumer demand through a series of measures including increases in planned advertising, adjustments to planned promotions and smaller pack sizes.
- Reynolds Cooking & Baking recovery and lower operational costs
- Hefty gained additional share of waste bags in the quarter driven by strong innovation.
- Presto continued to increase share of store brand press-to-close food bags in the quarter.
Headwinds
- Fourth quarter net revenues to be approximately 7% to 9% lower than prior year
- Consolidated retail volume is estimated to be down 2% to 4%
- Consolidated non-retail sales are estimated to be down $40 million by comparison to $75 million in the prior year.
- The Company expects full-year net revenues to be approximately 2% lower than prior year
- Consolidated non-retail sales are estimated to be down $70 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 Q3 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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