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Dec 31, 2023
Reynolds Q4 2023 Earnings Report
Reynolds' financial performance improved in Q4 2023, with increased net income and adjusted EBITDA.
Key Takeaways
Reynolds Consumer Products reported strong Q4 2023 results, marked by a 28% increase in net income and a 19% increase in Adjusted EBITDA. The company's performance was driven by the successful execution of the Reynolds Cooking & Baking recovery plan, retail product portfolio optimization, and lower operational costs.
Net income increased by 28% and Adjusted EBITDA increased by 19%.
Retail volume decreased 3%, outperforming a weighted average category decline of 4%.
The Reynolds Cooking & Baking recovery plan was successfully executed.
Voluntary principal payments totaling $150 million were made on the term loan facility.
Revenue by Segment
Forward Guidance
The Company forecasts full-year 2024 net revenues to be approximately $3,530 million to $3,640 million versus prior year net revenues of $3,756 million.
Positive Outlook
- Retail volume at or above category forecasts
- Further improvements in product mix
- The Reynolds Cooking & Baking business’ recovery of historical earnings
- Delivery of additional Reyvolution cost savings
- Approximately $20 million expected reduction in interest expense compared to 2023 net interest expense of $119 million
Challenges Ahead
- 1% reduction from pricing
- 3% reduction from lower non-retail volume and further optimization of the retail product portfolio
- 2% reduction to 1% increase from retail volume at or better than category forecasts
- First quarter 2024 net revenues to be approximately $795 million to $820 million versus prior year net revenues of $874 million
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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