Reynolds Q3 2023 Earnings Report
Key Takeaways
Reynolds Consumer Products reported a 3% decrease in net revenues to $935 million, but net income increased by 63% to $78 million. Adjusted EBITDA rose by 42% to $165 million. The company's performance was driven by pricing actions and lower operational costs.
Net revenues decreased by 3% to $935 million compared to Q3 2022.
Net income increased by 63% to $78 million compared to Q3 2022.
Adjusted EBITDA increased by 42% to $165 million compared to Q3 2022.
Earnings per share increased by 61% to $0.37 compared to Q3 2022.
Reynolds
Reynolds
Reynolds Revenue by Segment
Forward Guidance
The Company expects fourth quarter net revenues to be approximately 7% to 9% lower than prior year net revenues of $1,089 million, consisting of 2% lower pricing and 5% to 7% lower volume. The Company expects full-year net revenues to be approximately 2% lower than prior year net revenues of $3,817 million, consisting of 2% higher pricing and 4% lower volume.
Positive Outlook
- Consolidated retail volume is estimated to be down 2% to 4%, consisting of stable to growing volume in the Company’s three largest categories (aluminum foil, waste bags and food bags) and lower disposable tableware volume driven by category elasticity.
- Hefty is holding share in relevant disposable tableware segments and is stimulating consumer demand through a series of measures including increases in planned advertising, adjustments to planned promotions and smaller pack sizes.
- Reynolds Cooking & Baking recovery and lower operational costs
- Hefty gained additional share of waste bags in the quarter driven by strong innovation.
- Presto continued to increase share of store brand press-to-close food bags in the quarter.
Challenges Ahead
- Fourth quarter net revenues to be approximately 7% to 9% lower than prior year
- Consolidated retail volume is estimated to be down 2% to 4%
- Consolidated non-retail sales are estimated to be down $40 million by comparison to $75 million in the prior year.
- The Company expects full-year net revenues to be approximately 2% lower than prior year
- Consolidated non-retail sales are estimated to be down $70 million by comparison to $268 million in the prior year.
Revenue & Expenses
Visualization of income flow from segment revenue to net income