Business
Reynolds Consumer Products Reports Third Quarter 2020 Financial Results
Announces Net Revenues Increase of 11% Over Prior Year Increases 2020 Full Year Outlook LAKE FOREST, Ill.--(BUSINESS WIRE)-- Reynolds Consumer Products Inc.
About this update from Reynolds Consumer Products Inc.
[{"type":"text","content":"\nAnnounces Net Revenues Increase of 11% Over Prior Year \n\nIncreases 2020 Full Year Outlook\n\n LAKE FOREST, Ill.--(BUSINESS WIRE)--\nReynolds Consumer Products Inc. (“Reynolds,” “RCP” or the “Company”), today reported results for the third quarter 2020 ended September 30, 2020.\n\nThird Quarter 2020 Financial Highlights:\n\n\nNet Revenues of $823 million\n\n\nEarnings Per Share of $0.54; Adjusted Earnings Per Share of $0.561\n\n\nNet Income of $113 million; Adjusted Net Income of $117 million 1\n\n\nAdjusted EBITDA of $192 million 1\n\n\nThird Quarter 2020 Results\n\nNet revenues in the third quarter of 2020 were $823 million compared to $741 million in the prior year period. Growth was driven by strong demand across all business segments, reflecting the increased every day at-home use and the impact of new products.\n\nNet Income increased $50 million to $113 million in the third quarter of 2020 compared to $63 million in the third quarter of 2019 and Adjusted Net Income was $117 million for the third quarter of 2020. The increase in Net Income was primarily driven by higher revenue and lower interest expense resulting from the Company’s new debt structure that went into effect in conjunction with its IPO.\n\nAdjusted EBITDA was $192 million in the third quarter of 2020 compared to $162 million in the third quarter of 2019. The increase was primarily due to increased revenue and lower material and manufacturing costs which were partially offset by higher advertising and personnel costs.\n\n“We delivered a quarter of strong organic sales growth, Adjusted EBITDA and earnings per share, enabling us to increase our outlook for the year,” said Lance Mitchell, President and Chief Executive Officer. “Our near-term priorities remain employee health and safety, maximizing availability of our products, and continued investment in our business. We remain focused on leadership of our categories, and I could not be more pleased that we are able to simplify daily life for consumers by meeting the sustained and fundamental shift in demand for our products. We are aware of next year’s comparisons and leaning into the opportunity with capacity, innovation, and investment to support another year of strong performance.”\n\nKey Segment Results (compared to the third quarter of 2019)\n\nReynolds Cooking & Baking\n\n\nNet revenues increased $29 m...