Reynolds Consumer Products Inc. · NASDAQ:REYN
Reynolds Consumer Products — Q2 2024 Earnings Presentation
26 slides from Reynolds Consumer Products's earnings presentation, Aug 7, 2024
Slide 1: Q2 2024 Earnings Call
Q2 2024 Earnings Call August 7, 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 third quarter and fiscal year 2024 guidance. In some cases, you c
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: Q2 2024 Financial Results
Q2 2024 Financial Results
Slide 7: CEO quote on strong retail revenue performance
“Strong retail revenue performance in each of our business units resulted in RCP outperforming our categories during the quarter. As a result, we delivered another quarter of strong financial results demonstrating our marketplace leadership as well as our effectiveness in driving operational excelle
Slide 8: Q2 2024 Financial Highlights
Q2 2024 Financial Highlights $930m $172m 18% 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 $1,764m $294m 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 Q2’24 Q2’23 Net Revenues $304 million $321 million Adj. EBITDA $56 million $40 million % Adj. EBITDA margin 18% 12% Adjusted EBITDA increased $16 million driven by increased production and lower operational costs. Volume decreased 5% and was driven by an exp
Slide 11: Hefty Waste & Storage
Hefty Waste & Storage Segment Results Q2’24 Q2’23 Net Revenues $238 million $229 million Adj. EBITDA $69 million $62 million % Adj. EBITDA margin 29% 27% Adjusted EBITDA increased $7 million driven by lower operational costs and higher revenue, partially offset by increased investments in advertisin
Slide 12: Hefty Tableware
Hefty Tableware Segment Results Q2’24 Q2’23 Net Revenues $245 million $251 million Adj. EBITDA $39 million $45 million % Adj. EBITDA margin 16% 18% Volume performance improved to down 1% in the quarter from down 6% in the first quarter and down 8% in the second half of 2023, in each case as compared
Slide 13: Presto Products
Presto Products Segment Results Q2’24 Q2’23 Net Revenues $150 million $145 million Adj. EBITDA $37 million $28 million % Adj. EBITDA margin 25% 19% Adjusted EBITDA increased $9 million to a second quarter record $37 million driven by volume growth and lower operational costs. Volume increased 2% dri
Slide 14: Financial Outlook
Financial Outlook
Slide 15: Q3 and Full Year 2024 Outlook
Q3 and Full Year 2024 Outlook Prior Full Year 2024 Current Full Year 2024 Metric Q3 2024 Outlook Outlook Outlook Net Revenues $885 to $915 million $3,530 to $3,640 million $3,590 to $3,670 million Net Income and Adj Net Income $82 to $90 million $341 to $357 million $346 to $358 million Adjusted EBI
Slide 16: Net Revenue Full-Year 2024 Guide
Net Revenue Full-Year 2024 Guide 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 (2.0)% (0.5)% 1.0% (1.0)% —% 1.0% 1.0% 0.5% —% Non-Retail Volume &
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 June 30, 2024 2023 Net income – GAAP $ 97 $ 66 Income tax expense 18 23 Interest expense, net 25 31 Depreciation and amortization 3
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 June Twelve Months Ended 30, 2024 Dece
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 June 30, 2024 Current portion of long-term debt $ — Long-term debt 1,784 Total debt 1,784 Cash and
Slide 25: Reconciliation of Q3 2024 and FY2024 Net Income Guidance to Adjusted EBITDA Guidance
Reconciliation of Q3 2024 and FY2024 Net Income Guidance to Adjusted EBITDA Guidance Reynolds Consumer Products Inc. Reconciliation of Q3 2024 and FY2024 Net Income Guidance to Adjusted EBITDA Guidance (amounts in millions) Three Months Ended September 30, 2024 Year Ended December 31, 2024 Low High
Slide 26: Reynolds Consumer Products
Reynolds Y Consumer Products
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