Business
Reynolds Consumer Products Reports Fourth Quarter and Full Year 2024 Financial Results; Provides 2025 Outlook
Net Income Grew 18% on Improved Margins Retail Volumes Accelerated in Q4 Investing Strong Cash Flow in Future Revenue Growth and Additional Margin Expansion
About this update from Reynolds Consumer Products Inc.
[{"type":"text","content":"\nNet Income Grew 18% on Improved Margins\n\n\nRetail Volumes Accelerated in Q4\n\n\nInvesting Strong Cash Flow in Future Revenue Growth and Additional Margin Expansion\n\n\n LAKE FOREST, Ill.--(BUSINESS WIRE)--\nReynolds Consumer Products Inc. (the “Company”) (Nasdaq: REYN) today reported financial results for the fourth quarter and fiscal year ended December 31, 2024.\n\n\nFiscal Year 2024 Highlights\n\n\n\nNet Revenues of $3,695 million vs. $3,756 million in 2023\n\n\nRetail Net Revenues of $3,518 million vs. $3,559 million in 2023\n\n\n\nNon-Retail Net Revenues, which comprises aluminum sales to food service and industrial customers, of $177 million vs. $197 million in 2023\n\n\n\n\n\n\nNet Income and Adjusted Net Income of $352 million vs. $298 million in 2023\n\n\n\nEBITDA and Adjusted EBITDA of $678 million vs. $636 million in 2023\n\n\n\nEarnings Per Share and Adjusted Earnings Per Share of $1.67 vs. $1.42 in 2023\n\n\n\nOperating Cash Flow of $489 million; 72% conversion of Adjusted EBITDA\n\n\n\nRetail volume decreased 1% for the year driven by a one-point headwind from product portfolio optimization.\n\n\nNet Income increased 18% to $352 million. Adjusted EBITDA increased 7% to $678 million driven by lower operational costs, partially offset by the impact of lower Net Revenues. Net Income increased as a result of the same factors as well as lower interest expense.\n\n\nThe Company reduced Net Debt Leverage1 from 2.7x on December 31, 2023 to 2.3x on December 31, 2024, within the stated target leverage range of 2.0 to 2.5x.\n\n\n“Our retail volume accelerated in the fourth quarter, and we have the team, business model and resources to drive strong growth, further margin expansion and consistently attractive shareholder returns,” said Scott Huckins, President and Chief Executive Officer. “Reynolds and Hefty are very strong brands, and we enter 2025 committed to executing new and existing programs to realize even more of RCP’s potential.”\n\n\n\n\n1Net Debt is defined as current portion of long-term debt plus long-term debt less cash and cash equivalents. Net Debt Leverage is defined as Net Debt divided by Trailing Twelve Months Adjusted EBITDA. See “Use of Non-GAAP Financial Measures” for additional information.\n\n\n\n\n\n\n\nFourth Quarter 2024 Highlights\n\n\n\nNet Revenues of $1,021 million vs. $1,007 million in Q4 2...