Business
Reynolds Consumer Products Reports Second Quarter 2021 Financial Results
Strong Demand Continues Pricing to Offset Unprecedented Cost Increases Timing of Margin Recovery Driving Lower Earnings Outlook LAKE FOREST, Ill.--(BUSINESS
About this update from Reynolds Consumer Products Inc.
[{"type":"text","content":"\nStrong Demand Continues\n\nPricing to Offset Unprecedented Cost Increases\n\nTiming of Margin Recovery Driving Lower Earnings Outlook\n\n LAKE FOREST, Ill.--(BUSINESS WIRE)--\nReynolds Consumer Products Inc. (“Reynolds,” “RCP” or the “Company”) (Nasdaq: REYN) today reported results for the second quarter 2021 ended June 30, 2021.\n\nSecond Quarter 2021 Highlights\n\n\nNet Revenues of $873 million, up 6% over Q2 prior year net revenues\n\n\nNet Income of $80 million; Adjusted Net Income of $83 million\n\n\nAdjusted EBITDA of $148 million\n\n\nEarnings Per Share of $0.38; Adjusted Earnings Per Share of $0.39\n\n\nRevenues increased 6% on top of record second quarter revenues in 2020 and in spite of an estimated two percentage point impact due to shipment delays from import and other third-party suppliers. Price and volume contributed to our revenue increase, reflecting pricing to offset commodity cost increases and a pick-up in growth for Hefty Waste & Storage and Hefty Tableware as everyday usage occasions remained strong and social gatherings increased. Net income was $80 million, down 29% versus last year’s net income, and Adjusted EBITDA was $148 million, down 23% versus last year’s Adjusted EBITDA as material cost increases outpaced our price increases.\n\n“Household demand for our products remains strong, social gatherings are increasing, and we delivered solid margins in a period of unprecedented cost pressure” said Lance Mitchell, President and Chief Executive Officer. “We are responding to these pressures with pricing and other cost reduction measures and expect a pronounced improvement in profitability after our third round of pricing goes into effect during the third quarter. We have a history of profit recovery and have been strengthening our manufacturing and supply chain capabilities, positioning us for continued market share strength and ongoing growth.”\n\nSegment Results\n\nReynolds Cooking & Baking\n\n\nNet revenues increased $8 million, or 3%\n\n\nAdjusted EBITDA decreased $7 million, or -11%\n\n\nNet revenues increased 3%, driven by price increases, partially offset by a volume decline. Adjusted EBITDA decreased 11%, driven by lower volume as the pricing actions fully offset increases in material and other costs.\n\nThe volume decline was primarily due to lapping of last year’s elevated consumption.\n\nHefty ...