Business
Reynolds Consumer Products Reports Third Quarter 2023 Financial Results
Accelerating Margins and Updating Earnings Estimates Generating Strong Cash Flow and Improving Leverage Gaining Product Category Share LAKE FOREST,
About this update from Reynolds Consumer Products Inc.
[{"type":"text","content":"\nAccelerating Margins and Updating Earnings Estimates\n\n\nGenerating Strong Cash Flow and Improving Leverage\n\n\nGaining Product Category Share\n\n\n LAKE FOREST, Ill.--(BUSINESS WIRE)--\nReynolds Consumer Products Inc. (the “Company”) (Nasdaq: REYN) today reported financial results for the third quarter ended September 30, 2023.\n\n\nThird Quarter 2023 Highlights\n\n\n\nNet Revenues of $935 million, vs. $967 million in Q3 2022, down 3%\n\n\n\nNet Income of $78 million vs. $48 million in Q3 2022, up 63%, and $268 million for the trailing twelve months ended September 30, 2023\n\n\n\nAdjusted EBITDA of $165 million vs. $116 million in Q3 2022, up 42%, and $598 million for the trailing twelve months ended September 30, 2023\n\n\n\nEarnings Per Share of $0.37 vs. $0.23 in Q3 2022, up 61%\nAdjusted Earnings Per Share of $0.37 vs. $0.24 in Q3 2022, up 54%\n\n\n\nOperating Cash Flow of $423 million in first nine months of 2023 vs. $118 million in first nine months of 2022\n\n\n\nNet Income and Adjusted EBITDA increased 63% and 42%, respectively, over the prior year, driven by previously implemented pricing actions and lower operational costs, partially offset by higher SG&A. Net income was impacted by higher interest and income tax expense.\n\n\nOperating cash flow of $423 million in the first nine months of 2023 represented a $305 million increase by comparison to operating cash flow for the same period in the prior year. Net debt to trailing twelve months Adjusted EBITDA improved from 3.8x on December 31, 2022 to 3.1x on September 30, 2023. Subsequent to quarter end, the Company made an additional $100 million voluntary payment on its term loan facility.\n\n\n“RCP continues to perform very effectively in a dynamic operating environment, and I am extremely proud of all that our team has accomplished,” said Lance Mitchell, President and Chief Executive Officer. “We accelerated margin expansion and delivered earnings at the upper end of our guide driven by market share gains, continued execution of the Reynolds Cooking & Baking recovery plan and significant improvements in profitability of our other businesses. We are converting more of our earnings to cash through ongoing initiatives to reduce working capital and continued capital spending discipline. As a result, we anticipate 2023 earnings at the high end of our previous range an...