Business
Reynolds Consumer Products Reports First Quarter 2023 Financial Results
First Quarter In-line with Expectations Reynolds Cooking & Baking Recovery on Track Marketplace Leadership Continues Full Year Guide Reaffirmed LAKE FOREST,
About this update from Reynolds Consumer Products Inc.
[{"type":"text","content":"\nFirst Quarter In-line with Expectations\n\n\nReynolds Cooking & Baking Recovery on Track\n\n\nMarketplace Leadership Continues\n\n\nFull Year Guide Reaffirmed\n\n\n LAKE FOREST, Ill.--(BUSINESS WIRE)--\nReynolds Consumer Products Inc. (“RCP” or “the Company”) (Nasdaq: REYN) today reported financial results for the first quarter ended March 31, 2023.\n\n\nFirst Quarter 2023 Highlights\n\n\n\nNet Revenues of $874 million, up 3% over Q1 prior year net revenues\n\n\n\nNet Income of $17 million vs. $52 million in Q1 2022\n\n\n\nAdjusted EBITDA of $82 million vs. $112 million in Q1 2022\n\n\n\nEarnings Per Share of $0.08 vs. $0.25 in Q1 2022; Adjusted Earnings Per Share of $0.08 vs. $0.26 in Q1 2022\n\n\n\nOperating Cash Flow of $88 million vs. $19 million in Q1 2022\n\n\n\nNet revenues increased 3% as the effect of price increases implemented last year more than offset a 2% volume decline. Net income and Adjusted EBITDA declined as anticipated increases in material and manufacturing costs in the Reynolds Cooking & Baking business, as well as higher personnel costs, professional fees and advertising costs, were partially offset by increased profitability in the rest of our businesses. In addition, net income was negatively impacted by higher interest costs due to increased interest rates.\n\n\n“Our results for the first quarter were in-line with our expectations and we believe we are well positioned for substantial earnings growth in 2023,” said Lance Mitchell, President and Chief Executive Officer. “The Reynolds Cooking & Baking recovery is off to a strong start, and our other three segments are also performing well, reflecting our category leadership and the advantage of our integrated brand and store brand model. I am extremely proud of the RCP team and look forward to building on our marketplace momentum, in addition to reporting strong financial results for the year.”\n\n\nReynolds Cooking & Baking\n\n\n\nNet revenues increased $15 million, or 6%\n\n\n\nAdjusted EBITDA decreased $24 million, or 86%\n\n\n\nNet revenues increased 6%, driven by higher pricing and volume. Adjusted EBITDA decreased 86% driven by increased material and manufacturing costs, slightly offset by increased pricing and volume.\n\n\nActions to stabilize operations and improve operational efficiencies performed well against internal targets, consistent with ...