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Sep 30, 2021
Reynolds Q3 2021 Earnings Report
Reported third quarter 2021 financial results with strong demand and pricing actions to offset cost increases.
Key Takeaways
Reynolds Consumer Products reported a 10% increase in net revenues to $905 million for the third quarter of 2021, driven by pricing and strong demand; however, net income decreased by 42% to $66 million, and Adjusted EBITDA decreased by 31% to $132 million due to rising material, labor, and logistics costs.
Net revenues increased by 10% compared to the prior year, reaching $905 million.
Net income was $66 million, a 42% decrease compared to the previous year.
Adjusted EBITDA amounted to $132 million, reflecting a 31% decrease year-over-year.
Earnings per share (EPS) stood at $0.31, while adjusted EPS was $0.33.
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 is expecting revenue growth in the mid to high teens for its fourth quarter, driven primarily by recent price increases and anticipated volume above Q4 2020 levels. The Company expects sequential margin improvement in the fourth quarter but continued short-term earnings pressure, primarily driven by increases in material, labor and logistics costs in excess of price increases implemented during the third quarter.
Positive Outlook
- Revenue growth in the mid to high teens for Q4.
- Driven primarily by recent price increases.
- Anticipated volume above Q4 2020 levels.
- Sequential margin improvement in the fourth quarter
- Continued effectiveness mitigating staffing, third-party manufacturing and logistics related disruptions.
Challenges Ahead
- Continued short-term earnings pressure.
- Driven primarily by increases in material.
- Driven primarily by increases labor and logistics costs in excess of price increases implemented during the third quarter.
- Rates for resin have not eased since July as forecasted, and aluminum rates are higher versus July levels.
- Labor and logistics costs have also exceeded forecasts since July.
Revenue & Expenses
Visualization of income flow from segment revenue to net income