Business
Reynolds Consumer Products Reports Second Quarter 2024 Financial Results
Second Quarter Net Revenues of $930M, Retail Revenue Growth of 1% Ahead of Expectations Second Quarter Net Income and Adjusted EBITDA Increased 47% and 15%
About this update from Reynolds Consumer Products Inc.
[{"type":"text","content":"\nSecond Quarter Net Revenues of $930M, Retail Revenue Growth of 1% Ahead of Expectations\n\n\nSecond Quarter Net Income and Adjusted EBITDA Increased 47% and 15%\n\n\nFull Year Net Revenue, Adjusted EBITDA and Net Income Guide Raised\n\n\nNet Debt Leverage1 Reduced to 2.4x at Quarter End with Strong Cash Flow; $50M Debt Prepayment Made After Quarter End\n\n\n LAKE FOREST, Ill.--(BUSINESS WIRE)--\nReynolds Consumer Products Inc. (the “Company” or “RCP”) (Nasdaq: REYN) today reported financial results for the second quarter ended June 30, 2024.\n\n\nSecond Quarter 2024 Highlights\n\n\n\nNet Revenues of $930 million vs. $940 million in Q2 2023\n\n\nRetail Net Revenues increased 1% to $892 million, exceeding Company expectations\n\n\n\nNon-retail Net Revenues, which consist of sales to food service customers, classified as related party net revenues, and industrial customers, decreased $16 million to $39 million\n\n\n\n\n\n\nNet Income and Adjusted Net Income of $97 million vs. $66 million in Q2 2023\n\n\n\nAdjusted EBITDA of $172 million vs. $150 million in Q2 2023\n\n\n\nEarnings Per Share and Adjusted Earnings Per Share of $0.46 vs. $0.32 in Q2 2023\n\n\n\nOperating Cash Flow of $183 million in first six months of 2024\n\n\n\nRetail volume outperformed Company expectations and was unchanged versus the second quarter of 2023 including a headwind of over 1% from product portfolio optimization. The Company continued to outperform its categories with several categories performing better than expected, resulting in improved performance versus the first quarter.\n\n\nNet Income increased $31 million and Adjusted EBITDA increased $22 million driven by manufacturing volume output and lower operational costs, partially offset by higher personnel costs and increased investment in advertising. Net Income benefited from these same factors as well as lower interest and income tax expense.\n\n\nThe Company further reduced Net Debt to Trailing Twelve Months Adjusted EBITDA1 from 2.7x on December 31, 2023 to 2.4x on June 30, 2024.\n\n\n“Strong retail revenue performance in each of our business units resulted in RCP outperforming our categories during the quarter,” said Lance Mitchell, CEO and President of Reynolds Consumer Products. “As a result, we delivered another quarter of strong financial results demonstrating our marketplace leadership a...