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Sep 30, 2024

Reynolds Q3 2024 Earnings Report

Reported strong financial results with net revenues and retail volume in line with expectations.

Key Takeaways

Reynolds Consumer Products reported third-quarter results, with net revenues of $910 million. Net income increased to $86 million and adjusted EBITDA increased to $171 million. The company updated its full-year guidance for net revenue, net income, and adjusted EBITDA.

Net Revenues reached $910 million, compared to $935 million in Q3 2023.

Net Income and Adjusted Net Income increased to $86 million, up from $78 million in Q3 2023.

Adjusted EBITDA increased to $171 million, compared to $165 million in Q3 2023.

Earnings Per Share and Adjusted Earnings Per Share increased to $0.41, up from $0.37 in Q3 2023.

Total Revenue
$910M
Previous year: $935M
-2.7%
EPS
$0.41
Previous year: $0.37
+10.8%
Gross Profit
$239M
Previous year: $249M
-4.0%
Cash and Equivalents
$96M
Previous year: $124M
-22.6%
Free Cash Flow
$93M
Previous year: $190M
-51.1%
Total Assets
$4.84B
Previous year: $4.84B
+0.1%

Reynolds

Reynolds

Reynolds Revenue by Segment

Forward Guidance

The Company guides full-year 2024 Net Revenues to be approximately $3,620 million to $3,660 million versus prior year Net Revenues of $3,756 million.

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

Challenges Ahead

  • 1% reduction from pricing
  • 0.5% reduction to 0.5% increase from retail volume
  • 2% reduction from lower non-retail volume
  • Optimization of the retail product portfolio
  • Fourth quarter 2024 Net Revenues to be approximately $945 million to $985 million versus prior year fourth quarter Net Revenues of $1,007 million

Revenue & Expenses

Visualization of income flow from segment revenue to net income