Reynolds Q4 2022 Earnings Report
Key Takeaways
Reynolds Consumer Products reported a 7% increase in net revenues for Q4 2022, reaching $1,089 million. Net income increased by 2% to $107 million, while Adjusted EBITDA increased by 10% to $200 million. The company launched a comprehensive recovery plan for its Reynolds Cooking & Baking segment, anticipating a return to pre-pandemic profitability in 2023.
Net revenues increased by 7% compared to Q4 prior year.
Net income increased by 2% versus the same prior year period.
Adjusted EBITDA increased by 10%, driven by pricing actions.
Comprehensive recovery plan launched for Reynolds Cooking & Baking segment.
Reynolds
Reynolds
Reynolds Revenue by Segment
Forward Guidance
The Company announced its fiscal year and first quarter outlook for 2023. They expect to further recover pre-pandemic profitability in 2023 driven by continued solid performance for Hefty Waste & Storage, Hefty Tableware and Presto and improving performance for Reynolds Cooking & Baking over the course of the year.
Positive Outlook
- Continued solid performance for Hefty Waste & Storage
- Continued solid performance for Hefty Tableware
- Continued solid performance for Presto
- Improving performance for Reynolds Cooking & Baking over the course of the year
- Continued price discipline and additional Reyvolution cost savings to contribute to further margin expansion in 2023
Challenges Ahead
- Carryover of higher cost aluminum into 2023
- Impact of operational inefficiencies in Reynolds Cooking & Baking into 2023
- Volume comparisons are expected to be a significant drag on our first quarter results
- Decline in projected consolidated profitability compared to the prior year period
- Commodity rates are assumed to be relatively stable versus end of January levels
Revenue & Expenses
Visualization of income flow from segment revenue to net income