Reynolds Consumer Products Inc. · NASDAQ:REYN
Reynolds Consumer Products — Q1 2023 Earnings Presentation
22 slides from Reynolds Consumer Products's earnings presentation, May 10, 2023
Slide 1: Q1 2023 Earnings Presentation
Q1 2023 Earnings Presentation May 10, 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 second quarter and fiscal year 2023 guidance. In some cases, you
Slide 3: 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 4: Q1 2023 Financial Results
Q1 2023 Financial Results
Slide 5: CEO Quote on First Quarter Results
“Our results for the first quarter were in-line with our expectations and we believe we are well positioned for substantial earnings growth in 2023. The Reynolds Cooking & Baking recovery is off to a strong start, and our other three segments are also performing well, reflecting our category leaders
Slide 6: Q1 2023 Financial Highlights
Q1 2023 Financial Highlights $874m $82m 9.4% 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 7: Reynolds Cooking & Baking Q1 2023 Segment Results
Reynolds Cooking & Baking Q1 2023 Segment Results Net Revenues $283 million Adj. EBITDA $4 million % Adj. EBITDA margin 1% • Actions to stabilize operations and improve operational efficiencies performed well. • New products are expected to be a key driver of growth for the year. • Innovation highli
Slide 8: Hefty Waste & Storage Q1 2023 Segment Results
Hefty Waste & Storage Q1 2023 Segment Results Net Revenues $233 million Adj. EBITDA $55 million % Adj. EBITDA margin 24% • Increased advertising and performance of new products drove commercial performance in the quarter. • Innovation highlights include: – Further expansion of Hefty Fabuloso® Lavend
Slide 9: Hefty Tableware Q1 2023 Segment Results
Hefty Tableware Q1 2023 Segment Results Net Revenues $224 million Adj. EBITDA $30 million % Adj. EBITDA margin 13% • Hefty Tableware gained brand share of disposable tableware in the quarter driven by continued share growth of disposable plates. • The sustainable dish portfolio also grew share in th
Slide 10: Presto Products Q1 2023 Segment Results
Presto Products Q1 2023 Segment Results Net Revenues $144 million Adj. EBITDA $19 million % Adj. EBITDA margin 13% • Presto gained additional share of store branded food bags in the quarter, and new products remained a key contributor to growth. • Innovation highlights include strength from stand-an
Slide 11: Q2 and Fiscal Year 2023 Outlook
Q2 and Fiscal Year 2023 Outlook Metric Q2 2023 Outlook Fiscal Year 2023 Outlook Net Revenues Flat to 2% growth Flat +/- 1% growth Net Income $57 to $64 million $274 to $296 million Adjusted EBITDA $135 to $145 million $605 to $635 million Earnings Per Share $0.27 to $0.30 $1.30 to $1.41 Net Debt (as
Slide 12: Sustainability
Sustainability
Slide 13: Sustainable Products & Packaging
Sustainable Products & Packaging Reynolds Kitchens® Unbleached Parchment Paper Rolls: The Hefty® Compostable Printed Paper Line: • Unbleached & chlorine free • Ultra strong • Responsibly sourced, FSC (Forest Stewardship Council) certified • Compostable • Recyclable & compostable • Made without PFAS
Slide 14: Innovative Solutions For Hard-to-Recycle Plastics
Advancing Sustainability Efforts Through Innovative Solutions For Hard-to-Recycle Plastics Designed to complement current recycling efforts, the Hefty ReNew™ program, formerly the Hefty® EnergyBag® Program, establishes a way to collect otherwise hard-to-recycle plastics at curbside and uses them as
Slide 15: ESG Framework
ESG Framework Simplify Daily Life to Enjoy What Matters Most Environmental and social issues not only affect the communities in which we operate, but also the long-term sustainability of our business. We have the opportunity to drive positive and meaningful change through our practices, investments
Slide 16: Reconciliation Tables
Reconciliation Tables
Slide 17: Non-GAAP Financial Measures
Non-GAAP Financial Measures We use non-GAAP financial measures “Adjusted EBITDA,” “Adjusted Net Income,” “Adjusted Earnings Per Share,” and “Net Debt” in evaluating our past results and future prospects. We define Adjusted EBITDA as net income calculated in accordance with GAAP, plus the sum of inco
Slide 18: Net Income to Adjusted EBITDA Reconciliation
Net Income to Adjusted EBITDA Reconciliation
Slide 19: Net Debt Reconciliation
Net Debt Reconciliation Reynolds #) Consumer Products Current portion of long-term debt Long-term debt Total debt Cash and cash equivalents Net debt (non-GAAP) Reynolds Consumer Products Inc. Reconciliation of Net Debt to Total Debt (amounts in millions) As of March 31, 2023 $ 25 2,061 2,086 (50) $
Slide 20: Outlook Reconciliation of Net Income to Adjusted EBITDA
Outlook Reconciliation of Net Income to Adjusted EBITDA
Slide 21: Adjusted Net Income and EPS Reconciliation
Adjusted Net Income and EPS Reconciliation
Slide 22: Reynolds Consumer Products
Reynolds Y) Consumer Products
Reynolds Consumer Products — Q1 2023 Earnings Presentation on 6ix