Reynolds Consumer Products Inc. · NASDAQ:REYN
Reynolds Consumer Products — Q2 2023 Earnings Presentation
22 slides from Reynolds Consumer Products's earnings presentation, Aug 9, 2023
Slide 1: Q2 2023 Earnings Webcast
Q2 2023 Earnings Webcast August 9, 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 third quarter and fiscal year 2023 guidance. In some cases, you c
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: Q2 2023 Earnings Results
Q2 2023 Earnings Results
Slide 7: CEO quote on second quarter results
“I am exceptionally pleased with our second quarter results which were driven by the continued successful implementation of the RCB recovery initiatives and the effective execution of our plan in all businesses. We enter the second half of 2023 with restored earnings in all four of our businesses, c
Slide 8: Q2 2023 Financial Highlights
Q2 2023 Financial Highlights $940m $150m 16% 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 9: YTD Financial Highlights
YTD Financial Highlights $1,814m $232m 13% 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 10: Reynolds Cooking & Baking
Reynolds Cooking & Baking Segment Results Q2 ’23 Q2 ‘22 Net Revenues $321 million $294 million Adj. EBITDA $40 million $36 million % Adj. EBITDA margin 12% 12% • Continued skillful execution of the RCB recovery plan resulted in outstanding results • Planned marketing and advertising investments cont
Slide 11: Hefty Waste & Storage
Hefty Waste & Storage Segment Results Q2 ’23 Q2 ‘22 Net Revenues $229 million $238 million Adj. EBITDA $62 million $46 million % Adj. EBITDA margin 27% 19% • Waste bag and slider food bag share performance remained strong, driven by innovation and increased investment in trade and advertising • -8%
Slide 12: Hefty Tableware
Hefty Tableware Segment Results Q2 ’23 Q2 ‘22 Net Revenues $251 million $240 million Adj. EBITDA $45 million $25 million % Adj. EBITDA margin 18% 10% • Hefty Tableware held brand share of disposable tableware, while benefiting from consumer migration to store brands • Volumes were impacted by elasti
Slide 13: Presto Products
Presto Products Segment Results Q2 ’23 Q2 ’22 Net Revenues $145 million $150 million Adj. EBITDA $28 million $25 million % Adj. EBITDA margin 19% 17% • Presto holds a majority share of store brand press-to- close food bags and built share as store brands’ share of press-to-close food bags increased
Slide 14: Q3 and Fiscal Year 2023 Outlook
Q3 and Fiscal Year 2023 Outlook Metric New Updated Prior Q3 2023 Outlook FY2023 Outlook FY2023 Outlook Net Revenues -3% to -5% growth Flat +/- 1% growth Flat +/- 1% growth Net Income $71 to $79 million $281 to $296 million $274 to $296 million Adjusted EBITDA $155 to $165 million $615 to 635 million
Slide 15: 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 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 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 June 30, 2023 $ 25 2,056 2,081 (83) $ 1,998
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
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