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Sep 30, 2020

Reynolds Q3 2020 Earnings Report

Reported net revenues increase of 11% over prior year and increased 2020 full year outlook.

Key Takeaways

Reynolds Consumer Products reported a strong third quarter in 2020, with net revenues increasing by 11% to $823 million compared to the prior year period. This growth was driven by strong demand across all business segments. Net income increased by $50 million to $113 million, and adjusted EBITDA was $192 million, reflecting increased revenue and lower material and manufacturing costs.

Net Revenues of $823 million.

Earnings Per Share of $0.54; Adjusted Earnings Per Share of $0.561.

Net Income of $113 million; Adjusted Net Income of $117 million.

Adjusted EBITDA of $192 million.

Total Revenue
$823M
Previous year: $741M
+11.1%
EPS
$0.56
Previous year: $0.41
+36.6%
Gross Profit
$265M
Previous year: $217M
+22.1%
Cash and Equivalents
$351M
Free Cash Flow
$111M
Previous year: $35M
+217.1%
Total Assets
$4.72B

Reynolds

Reynolds

Reynolds Revenue by Segment

Forward Guidance

The Company expects revenue growth to be mid-single digits on revenue of $835 million in the fourth quarter of 2019. Net Income to be in the range of $111 million to $114 million. Adjusted EBITDA to be in the range of $195 million to $200 million. Revenue to be in the range of $3,240 million to $3,260 million. Net Income to be in the range of $362 million to $365 million. Earnings Per Share to be in the range of $1.77 to $1.78 per share. Adjusted EBITDA to be in the range of $715 million to $720 million. Adjusted Net Income to be in the range of $410 million to $413 million. Adjusted Earnings Per Share to be in the range of $1.95 to $1.97 per share. Net Debt to be approximately $1.9 billion at December 31, 2020

Revenue & Expenses

Visualization of income flow from segment revenue to net income