Reynolds Consumer Products Inc. · NASDAQ:REYN
Reynolds Consumer Products — Q3 2024 Earnings Presentation
26 slides from Reynolds Consumer Products's earnings presentation, Oct 30, 2024
Slide 1: Q3 2024 Earnings Call
Q3 2024 Earnings Call October 30, 2024
Slide 2: Safe Harbor
Safe Harbor This presentation contains statements reflecting our views about our future performance that constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, including our fourth quarter and fiscal year 2024 guidance. In some cases, you
Slide 3: At-A-Glance
At-A-Glance Headquarters: Lake Forest, IL Nasdaq: REYN $3,756M ~6,000 IPO January 2020 2023 Net Revenues Employees #1 or #2 US market share position in the majority of product categories 95% of households across the US have at least 1 RCP product
Slide 4: Our products simplify daily life so you can enjoy what matters most
Our products simplify daily life so you can enjoy what matters most We make cooking, serving, clean-up and storage simpler and easier, providing people a little more time for the things that matter
Slide 5: 2024 Priorities
2024 Priorities Protect and drive volume by leveraging our competitively advantaged business model and investing in our categories and product innovation Innovate with new sustainable solutions and other new products to further differentiate our offerings in our categories Continue to optimize
Slide 6: Q3 2024 Financial Results
Q3 2024 Financial Results
Slide 7: CEO quote on leadership across household products
“We are building on our leadership across household products and delivered another quarter of strong financial performance as a result. RCP’s business model is a competitive advantage and the trajectory of our commercial and financial trends is strong.” - Lance Mitchell, President and CEO
Slide 8: Q3 2024 Financial Highlights
Q3 2024 Financial Highlights $910m $171m 19% Net Revenues Adj. EBITDA1 Adj. EBITDA margin1 Adj EBITDA by Segment ¹,² 1This is a non-GAAP financial measure. See the reconciliation tables at the end of this presentation for a reconciliation to the most directly comparable GAAP measure. 2 Excludes Corp
Slide 9: YTD Financial Highlights
YTD Financial Highlights $2,675m $465m 17% Net Revenues Adj. EBITDA1 Adj. EBITDA margin1 Adj EBITDA by Segment ¹,² 1This is a non-GAAP financial measure. See the reconciliation tables at the end of this presentation for a reconciliation to the most directly comparable GAAP measure. 2 Excludes Corpor
Slide 10: Reynolds Cooking & Baking
Reynolds Cooking & Baking Segment Results Q3’24 Q3’23 Net Revenues $305 million $312 million Adj. EBITDA $51 million $51 million % Adj. EBITDA margin 17% 16% Adjusted EBITDA was unchanged reflecting decreased operational costs which were fully offset by lower revenue. Retail volume decreased 3% driv
Slide 11: Hefty Waste & Storage
Hefty Waste & Storage Segment Results Q3’24 Q3’23 Net Revenues $248 million $244 million Adj. EBITDA $71 million $71 million % Adj. EBITDA margin 29% 29% Adjusted EBITDA was unchanged as the benefit of higher revenue was fully offset by increased advertising investment. Volume increased 2%, and exce
Slide 12: Hefty Tableware
Hefty Tableware Segment Results Q3’24 Q3’23 Net Revenues $217 million $233 million Adj. EBITDA $26 million $41 million % Adj. EBITDA margin 12% 18% The Adjusted EBITDA decrease was driven by lower volume and pricing, which was primarily related to timing of promotional activities, and increased oper
Slide 13: Presto Products
Presto Products Segment Results Q3’24 Q3’23 Net Revenues $149 million $152 million Adj. EBITDA $33 million $31 million % Adj. EBITDA margin 22% 20% The Adjusted EBITDA increase was driven by product portfolio optimization. Volume decreased 2% reflecting product portfolio optimization, partially offs
Slide 14: Financial Outlook
Financial Outlook
Slide 15: Q4 and Full Year 2024 Outlook
Q4 and Full Year 2024 Outlook Prior Full Year 2024 Current Full Year 2024 Metric Q4 2024 Outlook Outlook Outlook Net Revenues $945 to $985 million $3,590 to $3,670 million $3,620 to $3,660 million Net Income and Adj Net Income $117 to $125 million $346 to $358 million $348 to $356 million Adjusted E
Slide 16: Net Revenue Full-Year 2024 Guide
Net Revenue Full-Year 2024 Guide Estimated Impact of Factors on Prior Outlook and Current Outlook Difference between Prior 2024 Outlook Current 2024 Outlook Prior & Current 2024 Outlook Low Mid High Low Mid High Low Mid High Pricing (1.0)% (1.0)% (1.0)% (1.0)% (1.0)% (1.0)% —% —% —% Retail Volume (1
Slide 17: Advancing Sustainability
Advancing Sustainability Our goal is to offer sustainable options in each product line across our portfolio by 2025. Please refer to the Hefty.com and ReynoldsBrands.com for specific product and packaging features
Slide 18: Advancing Sustainability
Advancing Sustainability Please refer https://investors.reynoldsconsumerproducts.com/esg for more information on our sustainability mission
Slide 19: Innovation Drives Our Success
Innovation Drives Our Success
Slide 20: Non-GAAP Reconciliation Tables
Non-GAAP Reconciliation Tables
Slide 21: Non-GAAP Financial Measures
Non-GAAP Financial Measures We use non-GAAP financial measures “Adjusted EBITDA,” “Adjusted Net Income,” “Adjusted Earnings Per Share,” “Net Debt” and “Net Debt to Trailing Twelve Months Adjusted EBITDA,” in evaluating our past results and future prospects. We define Adjusted EBITDA as net income ca
Slide 22: Reconciliation of Net Income to Adjusted EBITDA
Reconciliation of Net Income to Adjusted EBITDA Reynolds Consumer Products Inc. Reconciliation of Net Income to Adjusted EBITDA (amounts in millions) Three Months Ended September 30, 2024 2023 Net income – GAAP $ 86 $ 78 Income tax expense 27 25 Interest expense, net 25 31 Depreciation and amortizat
Slide 23: Reconciliation of Trailing Twelve Months Net Income to Adjusted EBITDA
Reconciliation of Trailing Twelve Months Net Income to Trailing Twelve Months Adjusted EBITDA Reynolds Consumer Products Inc. Reconciliation of Trailing Twelve Months Net Income to Trailing Twelve Months Adjusted EBITDA (amounts in millions) Twelve Months Ended Twelve Months Ended September 30, 2024
Slide 24: Reconciliation of Total Debt to Net Debt
Reconciliation of Total Debt to Net Debt and Calculation of Net Debt to Trailing Twelve Months Adjusted EBITDA (amounts in millions, except for Net Debt to Trailing Twelve Months Adjusted EBITDA) As of September 30, 2024 Current portion of long-term debt $ — Long-term debt 1,735 Total debt 1,735 Cas
Slide 25: Reconciliation of Q4 2024 and FY2024 Net Income Guidance to Adjusted EBITDA
Reconciliation of Q4 2024 and FY2024 Net Income Guidance to Adjusted EBITDA Guidance Reynolds Consumer Products Inc. Reconciliation of Q4 2024 and FY2024 Net Income Guidance to Adjusted EBITDA Guidance (amounts in millions) Three Months Ended December 31, 2024 Year Ended December 31, 2024 Low High L
Slide 26: Reynolds Consumer Products
Reynolds Y Consumer Products
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