Business
Reynolds Consumer Products Reports Third Quarter 2022 Financial Results
Closed Gap Between Pricing and Cost Increases Market Share Strong & Growing in Multiple Categories Stepping Up Advertising & Promotion Unlocking Additional
About this update from Reynolds Consumer Products Inc.
[{"type":"text","content":"\nClosed Gap Between Pricing and Cost Increases\n\nMarket Share Strong & Growing in Multiple Categories\n\nStepping Up Advertising & Promotion\n\nUnlocking Additional 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 ended September 30, 2022.\n\nThird Quarter 2022 Highlights\n\n\nNet Revenues of $967 million, up 7% over Q3 prior year net revenues\n\n\nNet Income of $48 million, down 27% compared to Q3 prior year net income; Adjusted Net Income of $50 million\n\n\nAdjusted EBITDA of $116 million, down 12% compared to Q3 prior year Adjusted EBITDA\n\n\nEarnings Per Share of $0.23; Adjusted Earnings Per Share of $0.24\n\n\nNet revenues increased 7% as pricing more than offset a volume decline resulting from slowing non-retail sales, elasticity and increased consumer activity outside the home. Volume in many of our categories remains well above 2019 levels, driven by more cooking and working at home compared to prior to the pandemic. The decrease in Adjusted EBITDA was driven by lower volume and higher SG&A as price increases fully offset increases in material, manufacturing and logistics costs.\n\n“We closed the gap between pricing and cost increases this quarter while also building share and delivering earnings in line with our expectations,” said Lance Mitchell, President and Chief Executive Officer. “Household foil trends also improved as we attained key retail price points, and Reynolds and Hefty gained share in multiple categories including household foil, waste bags and disposable tableware. The economic environment remains dynamic, inflationary pressures continue and price elasticity continues to be uncertain. However, our cumulative pricing actions, easing commodity costs and accelerating Reyvolution cost savings position us for substantial margin expansion in the fourth quarter and recovery of pre-pandemic profitability in 2023.”\n\nReynolds Cooking & Baking\n\n\nNet revenues were flat\n\n\nAdjusted EBITDA decreased $23 million, or 41%\n\n\nNet revenues were flat, as lower shipments were offset by higher pricing implemented in response to increased material, manufacturing and logistics costs. The decrease in Adjusted EBITDA was primarily driven by lower volume and higher material...