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Jun 30, 2022
Reynolds Q2 2022 Earnings Report
Reported financial results for the second quarter of 2022.
Key Takeaways
Reynolds Consumer Products reported a 5% increase in net revenues compared to the second quarter of the prior year, driven by price increases that were partially offset by a decline in volume. Net income decreased by 35% year-over-year to $52 million, while Adjusted EBITDA decreased by 20% to $118 million due to lower volume and higher costs, which were significantly offset by price increases.
Net Revenues increased by 5% compared to Q2 prior year.
Net Income was $52 million, while Adjusted Net Income was $54 million.
Adjusted EBITDA was $118 million.
Earnings Per Share was $0.25, with Adjusted Earnings Per Share at $0.26.
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 now expects net revenues to be in the range of 8% to 11% growth. Net Income to be in the range of $269 million to $292 million; Adjusted Net Income to be in the range of $278 million to $301 million. Adjusted EBITDA to be in the range of $560 million to $590 million. Earnings Per Share to be in the range of $1.28 to $1.39 per share; Adjusted Earnings Per Share to be in the range of $1.32 to $1.43 per share.
Positive Outlook
- Net revenues to grow 8% to 12% in Q3 2022.
- Net revenues to grow 9% to 17% in Q4 2022.
- Net Income to be in the range of $43 million to $51 million in Q3 2022.
- Net Income to be in the range of $122 million to $137 million in Q4 2022.
- Adjusted EBITDA to be in the range of $110 million to $120 million in Q3 2022.
Challenges Ahead
- Volume down mid single digits for full year 2022
- Estimated low to mid single digit volume decline in Q3 2022
- Flat to slightly down volume in Q4 2022
- Company estimates 2022 cost pressures of approximately $525 million
- Assumes additional elasticity to its expectations from May 2022
Revenue & Expenses
Visualization of income flow from segment revenue to net income