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Mar 31, 2021
Reynolds Q1 2021 Earnings Report
Reynolds reported Q1 2021 financial results with net revenues up 4% and increasing forecast for topline growth.
Key Takeaways
Reynolds Consumer Products reported a strong first quarter with net revenues of $757 million, a 4% increase over the prior year. The company's performance was driven by price increases and lower trade promotion, although February storms impacted the Hefty Waste & Storage and Presto Products segments. The company is increasing its full year revenue outlook, expecting high single digit revenue growth.
Net revenues increased by 4% to $757 million compared to Q1 prior year.
Net income was reported at $74 million, with an adjusted net income of $76 million.
Earnings per share (EPS) reached $0.35, with an adjusted EPS of $0.36.
Adjusted EBITDA increased by 4% to $140 million compared to Q1 prior year.
Reynolds
Reynolds
Reynolds Revenue by Segment
Revenue by Segment
Reynolds Cooking & Baking Revenue
CapyFin.comHefty Waste & Storage Revenue
CapyFin.comHefty Tableware Revenue
CapyFin.comPresto Products Revenue
CapyFin.comUnallocated Revenue
CapyFin.com Forward Guidance
The Company is increasing its full year revenue outlook, expecting high single digit revenue growth underpinned by anticipated continued elevated consumption, innovation, retail replenishment, and pricing. With additional price increases going into effect during the second quarter, the Company is expecting high single digit revenue growth in its second quarter.
Positive Outlook
- Anticipated continued elevated consumption.
- Innovation.
- Retail replenishment.
- Pricing actions.
- Second round of price increases underway.
Challenges Ahead
- Estimated in-year cost pressures exceeding $300 million from increases in commodity and logistics rates.
- Global supply chain challenges.
- Short-term implications of pricing in an environment when costs are still increasing.
- Considerable margin pressure expected in the second quarter.
- Continuing impacts from February’s storms.
Revenue & Expenses
Visualization of income flow from segment revenue to net income