In This Article:
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Total Revenue: $910 million in Q3, at the upper end of guidance.
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Adjusted EBITDA: Increased by $6 million to $171 million.
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Earnings Per Share (EPS): $0.41, up 11% from Q3 2023.
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Free Cash Flow: $93 million for the quarter.
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Net Debt Leverage: Reduced to 2.3 times trailing 12 months adjusted EBITDA.
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Tableware Business Revenue: Decline due to lower foam plate volume and increased promotional spending.
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Retail Revenues Year-to-Date: $2,544 million.
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Non-Retail Revenues Year-to-Date: Decreased to $131 million.
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Adjusted EBITDA Year-to-Date: $465 million, up $67 million from the previous year.
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Full Year Revenue Guidance: Increased to $3,620 million to $3,660 million.
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Full Year Adjusted EBITDA Guidance: $673 million to $683 million, a 7% increase over 2023.
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Full Year EPS Guidance: $8.66 to $8.70 per share.
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Q4 Revenue Guidance: $945 million to $985 million.
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Q4 Adjusted EBITDA Guidance: $208 million to $218 million.
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Q4 Net Income Guidance: $117 million to $125 million.
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Q4 EPS Guidance: $0.56 to $0.60 per share.
Release Date: October 30, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Reynolds Consumer Products Inc (NASDAQ:REYN) reported a strong third quarter with revenue and earnings in line with expectations.
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The company is investing in new products and cost-saving opportunities to drive long-term growth.
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Reynolds Wrap gained additional market share, and Reynolds Kitchens Parchment continues to grow due to strong innovation and distribution gains.
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The Hefty Waste & Storage business unit achieved record quarterly revenue, with a majority share position in store-brand food bags.
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The company has successfully reduced net debt leverage to 2.3 times trailing 12 months adjusted EBITDA, enhancing financial flexibility.
Negative Points
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The tableware business experienced a decline in volume and earnings, primarily due to lower foam plate volume and increased promotional spending.
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Legislative changes and consumer shifts towards sustainable offerings have negatively impacted foam plate sales.
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Increased commodity prices, particularly aluminum and key resins, are expected to impact costs.
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The company anticipates continued headwinds from foam plate volumes due to legislative and consumption changes.
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There is uncertainty regarding the impact of potential tariffs on aluminum, which could affect the competitive environment.
Q & A Highlights
Q: How is Reynolds Consumer Products Inc. preparing for the holiday season given the current economic environment? A: Lance Mitchell, President and CEO, stated that the company has increased promotions and new product innovations in place, which positions them well for a strong holiday season. They are confident in their guidance and have received positive feedback from retail partners regarding the holiday outlook.