Reynolds Consumer Products Inc. (NASDAQ: REYN) reported its financial results for the second quarter

Reynolds Consumer Products Inc. (NASDAQ: REYN) reported its financial results for the second quarter ended June 30, 2024. ### Key Financial Metrics | Metric | Q2 2024 | Q2 2023 | Q1 2024 | Consensus Estimates (Q2 2024) | |---------------------------------|-------------------|--------------|--------------|-------------------------------| | Total Revenue | $930M | $940M | $834M | $891.12M | | Earnings Per Share (EPS) | $0.46 | $0.32 | $0.23 | $0.44 | | Net Income | $97M | $66M | $48M | - | | Adjusted EBITDA | $172M | $150M | $144M | - | **Interpretation:** Reynolds Consumer Products displayed resilient financial performance despite a slight year-over-year revenue decline. Q2 revenue of $930 million surpassed consensus estimates of $891.12 million. Additionally, the company demonstrated robust improvement in profitability, with EPS rising to $0.46 from $0.32 in Q2 2023 and significantly outperforming the expected EPS of $0.44. This growth was primarily attributed to increased manufacturing efficiency and reduced operational costs, despite facing higher personnel costs and increased advertising investment. ### Revenue Performance by Segment | Segment | Q2 2024 Revenue | Q2 2023 Revenue | Previous Guidance (if any) | |-------------------------------|-----------------|-----------------|---------------------------| | Reynolds Cooking & Baking | $304M | $321M | - | | Hefty Waste & Storage | $238M | $229M | - | | Hefty Tableware | $245M | $251M | - | | Presto Products | $150M | $145M | - | **Interpretation:** The company's revenue performance varied across segments. Hefty Waste & Storage and Presto Products showed positive revenue growth, with the latter reaching a Q2 record of $150 million, indicating room for future expansion. However, Reynolds Cooking & Baking and Hefty Tableware witnessed a slight decline. ### Operational Metrics | Metric | Q2 2024 | H1 2024 | |--------------------------|------------|------------------------| | Operating Cash Flow | $183M | $183M | | Net Debt Leverage | 2.4x | 2.4x | | Debt Prepayment Post Q2 | - | $50M | Several operational improvements were noted, such as reducing net debt leverage and strong cash flows, demonstrating a solid financial position. ### Executive Comments Lance Mitchell, CEO and President of Reynolds Consumer Products, said, "Strong retail revenue performance in each of our business units resulted in RCP outperforming our categories during the quarter. We are commercializing and expanding our strong innovation pipeline, unlocking Reyvolution programs to reduce operational costs and investing in strategic opportunities to drive long-term growth." ### Dividends The Board of Directors has approved a quarterly dividend of $0.23 per common share, payable on August 30, 2024, to shareholders of record as of August 16, 2024. ### Forward Guidance For the full year 2024, RCP guides net revenues to be approximately $3,590 million to $3,670 million. The company expects Adjusted EBITDA growth driven by retail volume, improvements in product mix, and additional cost-saving initiatives. Additionally, third-quarter revenue guidance is estimated between $885 million to $915 million. ### Stock Price Movement Following the earnings release, Reynolds Consumer Products' stock price experienced a decline of 0.8575%. This comprehensive review solidifies Reynolds Consumer Products' ability to sustain growth and strategic initiatives despite existing market challenges.