NASDAQ$REYN

Reynolds Consumer Products Inc · Q4 2021 earnings

Q4 2021 earnings · · Investor relations

Briefing

Reynolds reported fourth quarter and fiscal year 2021 financial results.

Reynolds Consumer Products reported a 15% increase in net revenues for Q4 2021, reaching $1,021 million. Net income was $105 million, a decrease of 6% compared to the previous year, and Adjusted EBITDA was $181 million, down 9% versus last year’s Adjusted EBITDA.

  • Net revenues increased 15% driven by pricing to offset increased material costs, strong demand and continued benefits from innovation.
  • Net income decreased 6% versus last year’s net income.
  • Adjusted EBITDA decreased 9% versus last year’s Adjusted EBITDA as price increases lagged increases in material, labor and logistics costs, partially offset by higher volume and lower SG&A.
  • The company expects 9% to 12% revenue growth for fiscal 2022.

Headline financials

Total Revenue

$1.02B

Previous: $888M+15.0%
EPS (adj)

$0.51

Previous: $0.57-10.5%
Adjusted EBITDA

$181M

Previous: $198M-8.6%
Capital Expenditures

$40M

Previous: $58M-31.0%
Free Cash Flow

$148M

Previous: $114M+29.8%
Net Income

$105M

Previous: $112M-6.3%
Operating Income

$151M

No prior period
Gross Profit

$228M

Previous: $267M-14.6%
Cash & Equivalents

$164M

Previous: $312M-47.4%
Total Assets

$4.81B

Previous: $4.72B+1.9%
Stock-Based Comp

-$1M

Previous: $1M-200.0%

Revenue & EPS history

Reynolds · Revenue · Quarterly

$1.02B

Q4 2021+15%vs Q4 2020
Beat estimate in 8 of 12 quarters(67%)
ActualEstimate

Revenue by segment

Reynolds · $1.02B total across 4 segments · Q4 2021

  • Reynolds Cooking & Baking
    $412M+23.0%
  • Hefty Waste & Storage
    $233M+8.9%
  • Hefty Tableware
    $232M+12.1%
  • Presto Products
    $144M+9.1%

Forward guidance

The Company expects 9% to 12% revenue growth for fiscal 2022, driven primarily by pricing as well as continued strong consumption across our categories, innovation, and retail replenishment.

Tailwinds

  • Revenue growth driven primarily by pricing.
  • Continued strong consumption across categories.
  • Innovation.
  • Retail replenishment.
  • Stable resin and aluminum rates.

Headwinds

  • Cost pressures of nearly $400 million.
  • Elasticity remains lower than pre-pandemic rates.
  • Staffing disruptions.
  • Third-party manufacturing disruptions.
  • Logistics related disruptions.

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 Q4 2021

Historical avgQ4 2021

-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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