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Jun 30, 2024
Reynolds Q2 2024 Earnings Report
Reported strong financial results for Q2 2024, with retail revenue growth ahead of expectations and increased net income and Adjusted EBITDA.
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
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 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