Business
Reynolds Consumer Products Reports Third Quarter 2021 Financial Results
Strong Demand Continues Pricing to Offset Additional Cost Increases Accelerating Reyvolution Cost Savings LAKE FOREST, Ill.--(BUSINESS WIRE)-- Reynolds
About this update from Reynolds Consumer Products Inc.
[{"type":"text","content":"\nStrong Demand Continues\n\nPricing to Offset Additional Cost Increases\n\nAccelerating Reyvolution Cost Savings\n\n LAKE FOREST, Ill.--(BUSINESS WIRE)--\nReynolds Consumer Products Inc. (“Reynolds,” “RCP” or the “Company”) (Nasdaq: REYN) today reported results for the third quarter 2021 ended September 30, 2021.\n\nThird Quarter 2021 Highlights\n\n\nNet Revenues of $905 million, up 10% over Q3 prior year net revenues\n\n\nNet Income of $66 million; Adjusted Net Income of $70 million\n\n\nAdjusted EBITDA of $132 million\n\n\nEarnings Per Share of $0.31; Adjusted Earnings Per Share of $0.33\n\n\nNet revenues increased 10% on top of record third quarter net revenues in 2020, reflecting pricing to offset increased material costs, strong underlying demand across our business, and approximately two percentage points from a one-time sale of excess raw materials. Net income was $66 million, down 42% versus last year’s net income, and Adjusted EBITDA was $132 million, down 31% versus last year’s Adjusted EBITDA as price increases lagged increases in material, labor and logistics costs, partially offset by lower SG&A.\n\n“We implemented pricing as planned and delivered another solid quarter in spite of increased staffing and logistics challenges and correspondingly higher labor and logistics costs,” said Lance Mitchell, President and Chief Executive Officer. “The capacity additions we undertook last year are strengthening our business, and we are taking a wide range of actions in order to return to pre-pandemic levels of profitability. Our third round of pricing actions was implemented as planned, and a fourth round of pricing goes into effect in early 2022. We are aggressively managing all controllable costs and accelerating investment in automation and other Reyvolution programs to improve our long-term cost structure. These and all of our recovery actions reflect our experience generating dependable volume, earnings and cash flow and our confidence in a pronounced recovery in profitability when inflation moderates.”\n\nSegment Results\n\nReynolds Cooking & Baking\n\n\nNet revenues increased $43 million, or 15%\n\n\nAdjusted EBITDA decreased $7 million, or -11%\n\n\nNet revenues increased 15%, 11 percentage points of which came from price increases with the remainder driven by a one-time sale of excess raw materials. Adjusted EBITDA d...