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Mar 31, 2023
Reynolds Q1 2023 Earnings Report
Reported financial results for the first quarter, with results in-line with expectations and reaffirming the full year guide.
Key Takeaways
Reynolds Consumer Products reported a 3% increase in net revenues to $874 million in Q1 2023. Net income decreased to $17 million, and adjusted EBITDA decreased to $82 million. The company reiterates its outlook for the full year and introduces its second quarter 2023 outlook.
Net revenues increased by 3% to $874 million compared to the prior year.
Net income was $17 million, down from $52 million in Q1 2022.
Adjusted EBITDA was $82 million, compared to $112 million in Q1 2022.
The company reaffirms its full-year guidance.
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 reiterates its outlook for the full year and introduces its second quarter 2023 outlook as follows:
Positive Outlook
- We expect to further recover pre-pandemic profitability in 2023 driven by improving performance for Reynolds Cooking & Baking
- We expect continued solid performance for Hefty Waste & Storage, Hefty Tableware and Presto.
- Commodity rates are assumed to be relatively stable versus end of April levels.
- We expect flat to 2% top-line growth and margin expansion in the second quarter, driven partly by improving Reynolds Cooking & Baking margins
- We expect to increase advertising and trade investment in 2023 while also paying down debt, driven by earnings growth, increased balance sheet efficiency and continued capital spending discipline.
Challenges Ahead
- The carryover of higher cost aluminum
- The impact of operational inefficiencies in Reynolds Cooking & Baking are expected to impact second quarter results, though to a lesser extent than in the first quarter.
- Net revenues Flat +/- 1% growth
- Net income $274 to $296 million
- Earnings per share $1.30 to $1.41
Revenue & Expenses
Visualization of income flow from segment revenue to net income