Business
Reynolds Consumer Products Reports Third Quarter 2024 Financial Results
Third Quarter Net Revenues, Retail Volume In Line with Expectations Third Quarter Net Income and Adjusted EBITDA Increased 10% and 4%, Respectively, In Line
About this update from Reynolds Consumer Products Inc.
[{"type":"text","content":"\nThird Quarter Net Revenues, Retail Volume In Line with Expectations\n\nThird Quarter Net Income and Adjusted EBITDA Increased 10% and 4%, Respectively, In Line with Expectations\n\nStrong Free Cash Flow Delivery Continued; $50M Debt Prepayment Made After Quarter End\n\nFull Year Net Revenue, Net Income and Adjusted EBITDA Guide Updated\n\nPlanned CEO and CFO Transition Announced\n\n LAKE FOREST, Ill.--(BUSINESS WIRE)--\nReynolds Consumer Products Inc. (the “Company” or “RCP”) (Nasdaq: REYN) today reported financial results for the third quarter ended September 30, 2024.\n\nThird Quarter 2024 Highlights\n\n\nNet Revenues of $910 million vs. $935 million in Q3 2023\n\n\nRetail Net Revenues decreased 3% to $856 million, in line with Company expectations\n\n\nNon-retail Net Revenues increased $3 million to $54 million, exceeding Company expectations\n\n\n\n\nNet Income and Adjusted Net Income of $86 million vs. $78 million in Q3 2023\n\n\nAdjusted EBITDA of $171 million vs. $165 million in Q3 2023\n\n\nEarnings Per Share and Adjusted Earnings Per Share of $0.41 vs. $0.37 in Q3 2023\n\n\nOperating Cash Flow of $307 million in first nine months of 2024\n\n\nRetail volume was unchanged and in line with improved category performance after adjusting for a 2-point headwind from product portfolio optimization and shipment timing.\n\nNet Income increased $8 million. Adjusted EBITDA increased $6 million driven by lower operational costs and SG&A, partially offset by the impact of lower Net Revenues. Net Income also increased as a result of those same factors as well as lower interest expense.\n\nThe Company further reduced Net Debt Leverage1 from 2.7x on December 31, 2023 to 2.3x on September 30, 2024.\n\n“We are building on our leadership across household products and delivered another quarter of strong financial performance as a result,” said Lance Mitchell, President and Chief Executive Officer of Reynolds Consumer Products. “RCP’s business model is a competitive advantage and the trajectory of our commercial and financial trends is strong, making now the right time to implement our planned leadership transition.”\n\n\n\n1Net Debt is defined as current portion of long-term debt plus long-term debt less cash and cash equivalents. Net Debt Leverage is defined as Net Debt divided by Trailing Twelve Months Adjusted EBITDA. See “Use of Non-G...