Reynolds Q3 2022 Earnings Report
Key Takeaways
Reynolds Consumer Products reported a 7% increase in net revenues to $967 million compared to the prior year. Net income was $48 million, a decrease of 27%. The company is focused on margin expansion in the fourth quarter and recovery of pre-pandemic profitability in 2023.
Net revenues increased by 7% year-over-year, driven by pricing actions.
Net income decreased by 27% year-over-year.
Adjusted EBITDA decreased by 12% year-over-year.
The company closed the gap between pricing and cost increases.
Reynolds
Reynolds
Reynolds Revenue by Segment
Forward Guidance
The Company now expects net revenues to grow approximately 8% for the fiscal year ending December 31, 2022. For the fourth quarter ending December 31, 2022, the Company expects net revenues to grow approximately 9%.
Positive Outlook
- Net revenues to grow approximately 8% for fiscal year 2022.
- Net Income to be in the range of $264 million to $276 million for fiscal year 2022.
- Adjusted Net Income to be in the range of $273 million to $285 million for fiscal year 2022.
- Adjusted EBITDA to be in the range of $560 million to $575 million for fiscal year 2022.
- Earnings Per Share to be in the range of $1.25 to $1.31 per share for fiscal year 2022.
Challenges Ahead
- Volume down mid single digits for fiscal year 2022.
- Net revenues to grow approximately 9% for fourth quarter 2022 driven by price increases and a low to mid single digit volume decline.
- Net Income to be in the range of $112 million to $124 million for fourth quarter 2022.
- Adjusted EBITDA to be in the range of $215 million to $230 million for fourth quarter 2022.
- Earnings Per Share to be in the range of $0.53 to $0.59 per share for fourth quarter 2022.
Revenue & Expenses
Visualization of income flow from segment revenue to net income