Reynolds Q4 2023 Earnings Report
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.
Reynolds
Reynolds
Reynolds 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
- 4.5% to 1.5% reduction from retail volume at or better than category forecasts
Revenue & Expenses
Visualization of income flow from segment revenue to net income