Loading...
01/10 16:56
Loading...
Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
The earnings call reflects mixed signals. Basic financial performance is stable with slight EPS improvement, but gross profit declined. Product development and market strategy show promise, especially in innovation and cost management. However, concerns over tableware sales and potential retailer shifts to other suppliers pose risks. Expenses are managed well, but the outlook for revenue is flat. The Q&A revealed cautious optimism but highlighted economic challenges and uncertainties. Overall, the sentiment is balanced, leading to a neutral prediction for stock price movement.
Net Revenues $931 million, an increase of more than 2% from $910 million in the year-ago period. The increase was driven by retail revenue growth of 1% to $864 million and a $13 million increase in non-retail revenues to $67 million.
Retail Volume Grew 1% excluding foam products, driven by market share increases in multiple categories and planned pricing actions.
Consolidated Adjusted EBITDA $168 million compared to $171 million in the year-ago period. The slight decrease reflects improved results in all operating segments but was offset by the timing of corporate expenses in the prior year.
Adjusted EPS $0.42 versus $0.41 in the year-ago period, reflecting lower interest costs and tax initiatives.
Gross Profit Down $6 million versus the year-ago period, but with sequential improvement due to increased alignment between pricing and input costs.
SG&A Costs Down $29 million year-to-date, reflecting implemented changes to lower the cost base and create a more agile organization.
Tableware Sales Volumes Down 13%, but EBITDA for the tableware business grew, demonstrating success in driving profitability despite lower sales volumes.
Reynolds Wrap Fun Foil: Expanding distribution for the holidays and performing strongly online, creating new usage occasions by responding to consumers' appetite for customization and variety.
Reynolds Kitchens Air Fryer Liners: Recognized as a 2025 new product pacesetter for growth and alignment with consumer trends.
Reynolds Kitchens Air Fryer Cups and Parchment Cooking Bags: Earned additional e-commerce and mass distribution gains.
Hefty ECOSAVE Compostable Cutlery: Introduced in club and mass earlier this year with encouraging velocities.
Hefty Fabuloso Watermelon Waste Bags: Achieved ACV of over 50% less than a year after launch, popular with Gen Z for its scent and hot pink color.
Retail Share Gains: Achieved share increases in Hefty Waste Bags, Hefty Party Cups, Reynolds Wrap, Reynolds Kitchen Parchment products, and store brand food bags.
Store Brand Food Bag Business: Gaining significant market share driven by increased distribution of new products in the club channel.
Cost Discipline: Progress in managing manufacturing, supply chain, and SG&A costs, driving improved results in all business units.
Manufacturing Productivity: Leaning on technology, lean principles, and automation to drive productivity.
U.S.-Centric Manufacturing Footprint: Leveraging domestic manufacturing and supply chain as a competitive advantage amid economic and trade uncertainties.
Revenue Growth Management: Improvements in processes and tools benefiting performance in multiple channels.
Onshoring of Production: Accelerating onshoring to reduce reliance on non-self-manufactured business.
Operating Environment Challenges: The operating environment remains challenging with low and middle-income consumers under continued pressure and retailers facing cost inflation, especially from overseas suppliers subject to tariffs. This could lead to more transactional relationships between suppliers and retailers, potentially resulting in customer shifts to other suppliers.
Supply Chain and Manufacturing Costs: While progress is being made in managing manufacturing and supply chain costs, the company is still facing challenges in driving out inefficiencies and reducing product costs. This is critical to maintaining competitive pricing and profitability.
Aluminum Costs and Pricing Adjustments: The company is closely monitoring aluminum costs and foil dynamics, which could impact pricing and promotional plans. Fluctuations in aluminum prices pose a risk to profitability and category performance.
Tableware Business Volume Decline: The tableware business experienced a 13% decline in sales volumes, which, despite improved profitability, indicates challenges in maintaining or growing market share in this segment.
Economic and Trade Uncertainty: Economic and trade uncertainties, including tariffs and overseas cost inflation, continue to pose risks to the company's operations and strategic objectives.
Revenue Expectations: For the full year, net revenues are expected to be flat to down 1% compared to 2024 net revenues of $3.7 billion. Fourth quarter net revenues are expected to decline by 1% to 5% compared to Q4 2024 net revenues of $1.021 billion.
Adjusted EBITDA: Full-year adjusted EBITDA is projected to be between $655 million and $665 million. Fourth quarter adjusted EBITDA is expected to range from $208 million to $218 million, compared to $213 million in Q4 2024.
Adjusted EPS: Full-year adjusted EPS is expected to range from $1.60 to $1.64. Fourth quarter adjusted EPS is projected to be between $0.56 and $0.60, compared to $0.58 in Q4 2024.
Capital Expenditures: Capital spending for the year is anticipated to increase by approximately $30 million to $40 million, focusing on high-return projects to support growth, drive margin, and enhance earnings.
Productivity Gains: Early flow-through of productivity gains from strategic initiatives is expected to contribute to near and long-term results.
Retail Volume Performance: Retail volume performance is expected to align with or exceed category performance for the full year.
Non-Retail Revenue: Non-retail revenue is expected to contribute 1 point of growth for the year.
The selected topic was not discussed during the call.
The earnings call reflects mixed signals. Basic financial performance is stable with slight EPS improvement, but gross profit declined. Product development and market strategy show promise, especially in innovation and cost management. However, concerns over tableware sales and potential retailer shifts to other suppliers pose risks. Expenses are managed well, but the outlook for revenue is flat. The Q&A revealed cautious optimism but highlighted economic challenges and uncertainties. Overall, the sentiment is balanced, leading to a neutral prediction for stock price movement.
The earnings call reveals mixed results: slight revenue growth, but declines in EBITDA and EPS. The Q&A highlights ongoing challenges with gross margins and tariff headwinds, though management expects recovery by Q4. Innovations and strategic initiatives are promising, but their costs and SG&A adjustments could limit flexibility. The market strategy remains intact, yet consumer confidence is weak. The company's guidance and financial outlook suggest caution, leading to a neutral sentiment for the stock price over the next two weeks.
The earnings call revealed several negative factors: a decline in net and retail revenues, persistent retailer destocking, and cost headwinds from tariffs. Despite unchanged EPS, strategic investments may impact net income. Q&A insights highlight ongoing challenges and uncertainties, particularly around retailer destocking and tariff impacts. The lack of clear guidance on these issues and expected declines in Q2 financial metrics contribute to a negative sentiment. The absence of a new partnership announcement or strong positive catalysts further supports a negative outlook for the stock price.
All transcripts are sourced directly from the official live webcast or the company’s official investor relations website. We use the exact words spoken during the call with no paraphrasing of the core discussion.
Full verbatim transcripts are typically published within 4–12 hours after the call ends. Same-day availability is guaranteed for all S&P 500 and most mid-cap companies.
No material content is ever changed or summarized in the “Full Transcript” section. We only correct obvious spoken typos (e.g., “um”, “ah”, repeated 10 times”, or clear misspoken ticker symbols) and add speaker names/titles for readability. Every substantive sentence remains 100% as spoken.
When audio quality is poor or multiple speakers talk over each other, we mark the section instead of guessing. This ensures complete accuracy rather than introducing potential errors.
They are generated by a specialized financial-language model trained exclusively on 15+ years of earnings transcripts. The model extracts financial figures, guidance, and tone with 97%+ accuracy and is regularly validated against human analysts. The full raw transcript always remains available for verification.
