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Jun 30, 2023
Reynolds Q2 2023 Earnings Report
Reported financial results with leading categories and expanding margins, executing Reynolds Cooking & Baking recovery initiatives, reiterating full year revenue outlook, and updating full year earnings guide.
Key Takeaways
Reynolds Consumer Products reported a 3% increase in net revenues to $940 million and a 27% increase in net income to $66 million for Q2 2023. Adjusted EBITDA also increased by 27% to $150 million. The company's performance was driven by successful implementation of Reynolds Cooking & Baking recovery initiatives and effective execution across all businesses.
Net revenues increased by 3% due to higher pricing and stable volume.
Net income and Adjusted EBITDA increased due to pricing actions and lower operational costs.
Reynolds Cooking & Baking recovery plan execution led to outstanding results with a 9% increase in net revenues.
The company is forecasting strong earnings growth for the remainder of the year and has resumed paying down debt.
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 expects a 3% to 5% decline in third quarter net revenues consisting of essentially unchanged pricing and 3% to 5% lower volume. The Company expects full-year net revenues to be in line with prior year net revenues, plus or minus 1%, consisting of 2% higher pricing and 2% lower volume at the mid-point of the guide.
Positive Outlook
- Reynolds Cooking & Baking is performing well and is on track for earnings consistent with historical levels in the second half of 2023.
- Commodity rates have been consistent with Company expectations since reporting first quarter 2023 results and are expected to remain stable over the balance of the year.
- Consolidated retail volume is estimated to be in line with prior year consolidated retail volume.
- Reynolds Cooking & Baking is performing well and is on track for earnings consistent with historical levels in the second half of 2023.
- Consolidated retail volume is estimated to be in line with prior year consolidated retail volume.
Challenges Ahead
- The Company expects a 3% to 5% decline in third quarter net revenues consisting of essentially unchanged pricing and 3% to 5% lower volume.
- Memorial Day and July Fourth holiday promotions resulted in stronger second quarter shipments and higher household inventories at the start of the third quarter.
- Consolidated non-retail sales are estimated to be down $60 million by comparison to $268 million in the prior year.
- The Company expects a 3% to 5% decline in third quarter net revenues consisting of essentially unchanged pricing and 3% to 5% lower volume.
- Consolidated non-retail sales are estimated to be down $60 million by comparison to $268 million in the prior year.
Revenue & Expenses
Visualization of income flow from segment revenue to net income