NASDAQ$REYN

Reynolds Consumer Products Inc · Q4 2022 earnings

Q4 2022 earnings · · Investor relations

Briefing

Reynolds reported a 7% increase in net revenues and a 2% increase in net income compared to the same quarter last year. Adjusted EBITDA increased by 10%, driven by pricing actions, offsetting lower volume and higher costs.

Reynolds Consumer Products reported a 7% increase in net revenues for Q4 2022, reaching $1,089 million. Net income increased by 2% to $107 million, while Adjusted EBITDA increased by 10% to $200 million. The company launched a comprehensive recovery plan for its Reynolds Cooking & Baking segment, anticipating a return to pre-pandemic profitability in 2023.

  • Net revenues increased by 7% compared to Q4 prior year.
  • Net income increased by 2% versus the same prior year period.
  • Adjusted EBITDA increased by 10%, driven by pricing actions.
  • Comprehensive recovery plan launched for Reynolds Cooking & Baking segment.

Headline financials

Total Revenue

$1.09B

Previous: $1.02B+6.7%
EPS (adj)

$0.53

Previous: $0.51+3.9%
Adjusted EBITDA

$200M

Previous: $181M+10.5%
Capital Expenditures

$42M

Previous: $40M+5.0%
Free Cash Flow

$59M

Previous: $148M-60.1%
Net Income

$107M

Previous: $105M+1.9%
Operating Income

$165M

Previous: $151M+9.3%
Gross Profit

$246M

Previous: $228M+7.9%
Cash & Equivalents

$38M

Previous: $164M-76.8%
Total Assets

$4.93B

Previous: $4.81B+2.4%
Stock-Based Comp

$1M

Previous: -$1M+200.0%

Revenue & EPS history

Reynolds · Revenue · Quarterly

$1.09B

Q4 2022+6.7%vs Q4 2021
Beat estimate in 10 of 15 quarters(67%)
ActualEstimate

Revenue by segment

Reynolds · $1.09B total across 5 segments · Q4 2022

  • Reynolds Cooking & Baking
    $398M-3.4%
  • Hefty Tableware
    $297M+28.0%
  • Hefty Waste & Storage
    $242M+3.9%
  • Presto Products
    $156M+8.3%
  • Unallocated
    -$4M

Forward guidance

The Company announced its fiscal year and first quarter outlook for 2023. They expect to further recover pre-pandemic profitability in 2023 driven by continued solid performance for Hefty Waste & Storage, Hefty Tableware and Presto and improving performance for Reynolds Cooking & Baking over the course of the year.

Tailwinds

  • Continued solid performance for Hefty Waste & Storage
  • Continued solid performance for Hefty Tableware
  • Continued solid performance for Presto
  • Improving performance for Reynolds Cooking & Baking over the course of the year
  • Continued price discipline and additional Reyvolution cost savings to contribute to further margin expansion in 2023

Headwinds

  • Carryover of higher cost aluminum into 2023
  • Impact of operational inefficiencies in Reynolds Cooking & Baking into 2023
  • Volume comparisons are expected to be a significant drag on our first quarter results
  • Decline in projected consolidated profitability compared to the prior year period
  • Commodity rates are assumed to be relatively stable versus end of January levels

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 2022

Historical avgQ4 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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