NASDAQ$REYN

Reynolds Consumer Products Inc · Q4 2023 earnings

Q4 2023 earnings · · Investor relations

Briefing

Reynolds' financial performance improved in Q4 2023, with increased net income and adjusted EBITDA.

Reynolds Consumer Products reported strong Q4 2023 results, marked by a 28% increase in net income and a 19% increase in Adjusted EBITDA. The company's performance was driven by the successful execution of the Reynolds Cooking & Baking recovery plan, retail product portfolio optimization, and lower operational costs.

  • Net income increased by 28% and Adjusted EBITDA increased by 19%.
  • Retail volume decreased 3%, outperforming a weighted average category decline of 4%.
  • The Reynolds Cooking & Baking recovery plan was successfully executed.
  • Voluntary principal payments totaling $150 million were made on the term loan facility.

Headline financials

Total Revenue

$1.01B

Previous: $1.09B-7.5%
EPS (adj)

$0.65

Previous: $0.53+22.6%
Capital Expenditures

-$27M

Previous: $42M-164.3%
Free Cash Flow

$194M

Previous: $59M+228.8%
Net Income

$137M

Previous: $107M+28.0%
Operating Income

$206M

Previous: $165M+24.8%
Gross Profit

$309M

Previous: $246M+25.6%
Stock-Based Comp

$4M

Previous: $1M+300.0%

Revenue & EPS history

Reynolds · Revenue · Quarterly

$1.01B

Q4 2023-7.5%vs Q4 2022
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 forecasts full-year 2024 net revenues to be approximately $3,530 million to $3,640 million versus prior year net revenues of $3,756 million.

Tailwinds

  • Retail volume at or above category forecasts
  • Further improvements in product mix
  • The Reynolds Cooking & Baking business’ 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
  • 3% reduction from lower non-retail volume and further optimization of the retail product portfolio
  • 2% reduction to 1% increase from retail volume at or better than category forecasts
  • First quarter 2024 net revenues to be approximately $795 million to $820 million versus prior year net revenues of $874 million
  • 4.5% to 1.5% reduction from retail volume at or better than category forecasts

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 2023

Historical avgQ4 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

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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