Reynolds Q2 2024 Earnings Report
Key Takeaways
Reynolds Consumer Products reported Q2 2024 net revenues of $930 million. Retail Net Revenues increased 1% to $892 million. Net Income increased to $97 million, and Adjusted EBITDA increased to $172 million. The company raised its full-year net revenue, Adjusted EBITDA, and net income guidance and reduced net debt leverage to 2.4x at quarter end.
Net Revenues reached $930 million, with Retail Net Revenues up 1% to $892 million.
Net Income and Adjusted Net Income increased to $97 million compared to $66 million in Q2 2023.
Adjusted EBITDA rose to $172 million, up from $150 million in Q2 2023.
Earnings Per Share and Adjusted Earnings Per Share both increased to $0.46, compared to $0.32 in Q2 2023.
Reynolds
Reynolds
Reynolds Revenue by Segment
Forward Guidance
The Company updates its earnings outlook for the full year as follows: Net Revenues $3,590 to $3,670 million, Net Income and Adj Net Income $346 to $358 million, Adjusted EBITDA $670 to $685 million, Earnings Per Share and Adj Earnings Per Share $1.65 to $1.71 and Net Debt at December 31, 2024 $1.5 to $1.6 billion. The Company introduces its third quarter 2024 outlook as follows: Net Revenues $885 to $915 million, Net Income and Adj Net Income $82 to $90 million, Adjusted EBITDA $165 to $175 million and Earnings Per Share and Adjusted Earnings Per Share $0.39 to $0.43
Positive Outlook
- Retail volume at or above category forecasts
- Improvements in product mix
- Reynolds Cooking & Baking business’s recovery of historical earnings
- Delivery of additional Reyvolution cost savings
- Approximately $20 million expected reduction in interest expense compared to 2023 net interest expense of $119 million
Challenges Ahead
- 1% reduction from pricing
- 2.5% reduction to 0.5% increase from retail volume, including the reversal of a benefit from estimated retailer order timing moving from the third quarter into the second quarter
- 2% reduction from lower non-retail volume and optimization of the retail product portfolio
- Commodity rates are expected to remain more stable than in recent years.
- Operating with discipline in a dynamic consumer environment and plan to continue driving our categories while expanding margins, driving cash flow and increasing financial flexibility.
Revenue & Expenses
Visualization of income flow from segment revenue to net income