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Reynolds
🇺🇸 NASDAQ:REYN
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•
Mar 31, 2022

Reynolds Q1 2022 Earnings Report

Reported solid first quarter results driven by price increases, while managing cost pressures and maintaining strong market share.

Key Takeaways

Reynolds Consumer Products reported a 12% increase in net revenues to $845 million, driven by price increases. Net income decreased by 30% to $52 million, and Adjusted EBITDA decreased by 20% to $112 million due to higher costs and lower volume, which were significantly offset by price increases.

Net revenues increased 12% year-over-year to $845 million.

Net income was $52 million, a decrease of 30% compared to the previous year.

Adjusted EBITDA was $112 million, a decrease of 20% compared to the previous year.

The company is prioritizing Reyvolution cost savings initiatives.

Total Revenue
$845M
Previous year: $757M
+11.6%
EPS
$0.26
Previous year: $0.36
-27.8%
Gross Profit
$168M
Previous year: $192M
-12.5%
Cash and Equivalents
$101M
Previous year: $144M
-29.9%
Free Cash Flow
-$9M
Previous year: -$14M
-35.7%
Total Assets
$4.81B
Previous year: $4.64B
+3.7%

Reynolds

Reynolds

Reynolds Revenue by Segment

Forward Guidance

The Company is updating expected performance within previously stated ranges. Net revenues to be at the high end of the range of 9% to 12% growth. Net Income to be near the low end of the range of $319 million to $349 million. Adjusted EBITDA to be near the low end of the range of $615 million to $655 million. Earnings Per Share to be near the low end of the range of $1.52 to $1.66 per share.

Positive Outlook

  • Net revenues to be at the high end of the range of 9% to 12% growth on $3,556 million in the prior year driven by price increases
  • Net Income to be in the range of $47 million to $55 million for Q2 2022
  • Adjusted Net Income to be in the range of $49 million to $57 million for Q2 2022
  • Adjusted EBITDA to be in the range of $110 million to $120 million for Q2 2022
  • Earnings Per Share to be in the range of $0.22 to $0.26 per share for Q2 2022

Challenges Ahead

  • Net Income to be near the low end of the range of $319 million to $349 million
  • Adjusted Net Income to be near the low end of the range of $327 million to $357 million
  • Adjusted EBITDA to be near the low end of the range of $615 million to $655 million
  • Earnings Per Share to be near the low end of the range of $1.52 to $1.66 per share
  • The Company estimates 2022 cost pressures of approximately $450 million (previously $400 million).

Revenue & Expenses

Visualization of income flow from segment revenue to net income

Company Overview

Full financial data and analysis

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