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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.
Revenue by Segment
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.
Revenue & Expenses
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