Reynolds Consumer Products Inc. · NASDAQ:REYN
Reynolds Consumer Products — Q3 2023 Earnings Presentation
22 slides from Reynolds Consumer Products's earnings presentation, Nov 8, 2023
Slide 1: Q3 2023 Earnings Call
Q3 2023 Earnings Call November 8, 2023
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 2023 guidance. In some cases, you
Slide 3: At-A-Glance
At-A-Glance Headquarters: Lake Forest, IL Nasdaq: REYN $3,817M ~6,000 IPO January 2020 2022 Net Revenues Employees #1 or #2 US market share position in 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 and clean-up simpler and easier, providing people a little more time for the things that matter
Slide 5: 2023 Priorities
2023 Priorities ✓ Maintain strong position of category leadership in all of our business segments • Innovate across our categories • Focus on sustainable solutions ✓ Execute against our Reynolds Cooking & Baking Recovery Plan • Drive major improvements in our manufacturing efficiencies ✓ : 200bps in
Slide 6: CEO quote on RCP performance
“RCP continues to perform very effectively in a dynamic operating environment, and I am extremely proud of all that our team has accomplished. We accelerated margin expansion and delivered earnings at the upper end of our guide driven by market share gains, continued execution of the Reynolds Cookin
Slide 7: Q3 2023 Financial Highlights
Q3 2023 Financial Highlights $935m $165m 18% Net Revenues Adj. EBITDA1 Adj. EBITDA margin1 Net Revenues By Segment2 Adj EBITDA By Segment2 Reynolds Cooking & Baking Reynolds Cooking & Baking Hefty Waste & Storage Hefty Waste & Storage Hefty Tableware Hefty Tableware Presto Products Presto Products M
Slide 8: YTD Financial Highlights
YTD Financial Highlights $2,750m $398m 14% Net Revenues Adj. EBITDA1 Adj. EBITDA margin1 Net Revenues By Segment2 Adj EBITDA By Segment2 Reynolds Cooking & Baking Reynolds Cooking & Baking Hefty Waste & Storage Hefty Waste & Storage Hefty Tableware Hefty Tableware Presto Products Presto Products Mil
Slide 9: Reynolds Cooking & Baking
Reynolds Cooking & Baking Segment Results Q3 ’23 Q3 ’22 Net Revenues $312 million $327 million Adj. EBITDA $51 million $33 million % Adj. EBITDA margin 16% 10% • Volume was down 3% for the quarter. The 1% increase in retail volume in the third quarter was more than offset by volume declines in our n
Slide 10: Hefty Waste & Storage
Hefty Waste & Storage Segment Results Q3 ’23 Q3 ’22 Net Revenues $244 million $237 million Adj. EBITDA $71 million $44 million % Adj. EBITDA margin 29% 19% • 1% volume increase as Hefty gained additional share of waste bags during the quarter • Hefty Fabuloso® was recognized by Circana (previously k
Slide 11: Hefty Tableware
Hefty Tableware Segment Results Q3 ’23 Q3 ’22 Net Revenues $233 million $251 million Adj. EBITDA $41 million $24 million % Adj. EBITDA margin 18% 10% • Adjusted EBITDA increased 71% driven by previously implemented pricing actions and lower operational costs, partially offset by higher advertising c
Slide 12: Presto Products
Presto Products Segment Results Q3 ’23 Q3 ’22 Net Revenues $152 million $155 million Adj. EBITDA $31 million $23 million % Adj. EBITDA margin 20% 15% • Adjusted EBITDA increased 35% reflecting lower operational costs. • Volume decreased 3% driven by SKU rationalization and lower specialty product de
Slide 13: Q4 and Full Year 2023 Outlook
Q4 and Full Year 2023 Outlook Metric New Prior Updated Q4 2023 Outlook FY2023 Outlook FY2023 Outlook Net Revenues -9 to -7% +/- 1% - 2% Net Income $127 to $135 million $281 to $296 million $288 to $296 million Adjusted EBITDA $227 to $237 million $615 to 635 million $625 to $635 million Earnings Per
Slide 14: Advancing Sustainability Through Innovative Solutions
Advancing Sustainability Through Innovative Solutions Please refer to the Hefty.com and ReynoldsBrands.com for specific product and packaging features
Slide 15: Reconciliation Tables
Reconciliation Tables
Slide 16: 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 month Adjusted EBITDA” in evaluating our past results and future prospects. We define Adjusted EBITDA as net income cal
Slide 17: Reconciliation of Net Income to Adjusted EBITDA
Reconciliation of Net Income to Adjusted EBITDA
Slide 18: Adjusted Net Income and EPS Reconciliation
Adjusted Net Income and EPS Reconciliation
Slide 19: Reconciliation of Net Income to Trailing Twelve Months Adjusted EBITDA
Reconciliation of Net Income to Trailing Twelve Months Adjusted EBITDA Reynolds Consumer Products Inc. Reconciliation of Net Income to Trailing Twelve Months Adjusted EBITDA (amounts in millions) Twelve Months Ended Twelve Months Ended September 30, 2023 December 31, 2022 (in millions) Net income –
Slide 20: Reconciliation of Total Debt to Net Debt and Net Debt to TTM Adjusted EBITDA
Reconciliation of Total Debt to Net Debt and Calculation of Net Debt to Trailing Twelve Months Adjusted EBITDA
Slide 21: Reconciliation of Q3 2023 and FY2023 Net Income Guide to Adjusted EBITDA Guide
Reconciliation of Q3 2023 and FY2023 Net Income Guide to Adjusted EBITDA Guide
Slide 22: Reynolds Consumer Products
Reynolds Y) Consumer Products
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