Introduces 2030 Vision
Reaffirms Q1 2024 and Full Year 2024
Guidance
Reynolds Consumer Products Inc. (the “Company”) (Nasdaq: REYN)
will host its 2024 Investor Day tomorrow, March 19, 2024, in New
York City at 8:30am ET. This event was first announced on February
1, 2024. The live webcast can be found at
https://investorday.reynoldsconsumerproducts.com/. A replay of the
presentation, including slides and transcripts, will be posted to
the Investor Relations section of the Company’s website after the
conclusion of tomorrow’s event.
The Reynolds Consumer Products 2024 Investor Day will feature
presentations from key members of the leadership team, providing
in-depth discussions on the Company’s strategic priorities,
financial objectives and long-term goals.
The presentation will kick-off with an address from Lance
Mitchell, President and Chief Executive Officer, who will introduce
the Reynolds Consumer Products 2030 Vision along with the four
pillars that support it. The four pillars of the 2030 vision are:
(1) “Grow the Core”, driving organic volume growth through
championing the Reynolds categories, leveraging innovation and
sustainable new products; (2) “Expand Margins” through leveraging
the Reyvolution program for operating efficiencies, cost
management, and digital transformation; (3) “Champion Cash” by
investing in the business for revenue and profit growth, extending
working capital efficiencies, and increasing financial flexibility
through debt reduction; and (4) “Explore for More”, expanding the
business scope through innovation in adjacent categories, targeted
acquisition opportunities, and investing in and developing enabling
technologies.
Each of the Presidents of the four Reynolds Consumer Products
business units will then review their business dynamics and
strategies. Judi Buckner will review Reynolds Cooking & Baking,
Lisa Smith will present Hefty Waste & Storage, Chris Corey will
discuss Presto Products, and Rachel Bishop will review Hefty
Tableware.
Scott Huckins, CFO, will review the Reynolds Consumer Products
financial algorithm, capital allocation framework, and total
shareholder return (TSR) drivers. The session will conclude with a
question-and-answer session for participants.
Additionally, Reynolds Consumer Products is reaffirming guidance
for the first quarter and full year 2024. This financial guidance
was detailed in the Company’s financial results press release dated
February 7, 2024. The summary guidance tables are repeated
here:
Fiscal
Year 2024 Outlook
Net revenues
$3,530 to $3,640 million
Net income
$331 to $347 million
Adjusted EBITDA
$660 to $680 million
Earnings per share
$1.57 to $1.65
Net debt at December 31, 2024
$1.5 to $1.6 billion
Q1 2024
Outlook
Net revenues
$795 to $820 million
Net income
$44 to $48 million
Adjusted EBITDA
$115 to $120 million
Earnings per share
$0.21 to $0.23
About Reynolds Consumer Products Inc.
Reynolds Consumer Products is a leading provider of household
products that simplify daily life so consumers can enjoy what
matters most. With a presence in 95% of households across the
United States, Reynolds Consumer Products manufactures and sells
products that people use in their homes for cooking, serving,
cleanup and storage. Iconic brands include Reynolds Wrap® aluminum
foil and Hefty® tableware and trash bags, as well as dedicated
store brands which are strategically important to retail customers.
Overall, Reynolds Consumer Products holds the No. 1 or No. 2 U.S.
market share position in majority of product categories it serves.
For more information, visit
https://investors.reynoldsconsumerproducts.com/.
Forward Looking Statements
This press release 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 first quarter and fiscal year
2024 guidance. In some cases, you can identify these statements by
forward-looking words such as “may,” “might,” “will,” “should,”
“expects,” “intends,” “outlook,” “forecast”, “position”,
“committed,” “plans,” “anticipates,” “believes,” “estimates,”
“predicts,” “model”, “assumes,” “confident,” “look forward,”
“potential” “on track”, or “continue,” the negative of these terms
and other comparable terminology. These forward-looking statements,
which are subject to risks, uncertainties and assumptions about us,
may include projections of our future financial performance, our
anticipated growth and recovery of profitability, management of
costs and other disruptions and other strategies, and anticipated
trends in our business, including expected levels of commodity
costs and volume. These statements are only predictions based on
our current expectations and projections about future events. There
are important factors that could cause our actual results, level of
activity, performance or achievements to differ materially from the
results, level of activity, performance or achievements expressed
or implied by the forward-looking statements, including but not
limited to the risk factors set forth in our most recent Annual
Report on Form 10-K and in our Quarterly Reports on Form 10-Q.
For additional information on these and other factors that could
cause our actual results to materially differ from those set forth
herein, please see our filings with the Securities and Exchange
Commission, including our most recent Annual Report on Form 10-K
and subsequent filings. Investors are cautioned not to place undue
reliance on any such forward-looking statements, which speak only
as of the date they are made. The Company undertakes no obligation
to update any forward-looking statement, whether as a result of new
information, future events or otherwise.
REYN-F
Use of Non-GAAP Financial Measures
We use non-GAAP financial measures “Adjusted EBITDA” 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 income tax expense, net interest expense,
depreciation and amortization and further adjusted to exclude IPO
and separation-related costs, as well as other non-recurring costs.
We define Net Debt as the current portion of long-term debt plus
long-term debt less cash and cash equivalents.
We present Adjusted EBITDA because it is a key measure used by
our management team to evaluate our operating performance, generate
future operating plans and make strategic decisions. In addition,
our chief operating decision maker uses Adjusted EBITDA of each
reportable segment to evaluate the operating performance of such
segments. We use Net Debt as we believe it is a more representative
measure of our liquidity. Accordingly, we believe presenting these
measures provide useful information to investors and others in
understanding and evaluating our operating results in the same
manner as our management team and board of directors.
Non-GAAP information should be considered as supplemental in
nature and is not meant to be considered in isolation or as a
substitute for the related financial information prepared in
accordance with GAAP. In addition, our non-GAAP financial measures
may not be the same as or comparable to similar non-GAAP financial
measures presented by other companies.
Guidance for fiscal year and first quarter 2024, where adjusted,
is provided on a non-GAAP basis. The Company cannot reconcile its
expected Net Debt at December 31, 2024 to expected total debt, or
expected ratios involving Net Debt, without reasonable effort
because certain items that impact total debt and other reconciling
measures are out of the Company’s control and/or cannot be
reasonably predicted at this time, to which unavailable information
could have a significant impact on the Company’s GAAP financial
results.
Please see reconciliations of non-GAAP measures used in this
release (with the exception of our December 31, 2024 Net Debt
outlook, as described above) to the most directly comparable GAAP
measures, beginning on the following page.
Reynolds Consumer Products
Inc.
Reconciliation of Q1 2024 and
FY2024 Net Income Guidance to Adjusted EBITDA Guidance
(amounts in millions)
Three Months Ended March 31,
2024
Year Ended December 31,
2024
Low
High
Low
High
Net income (GAAP)
$
44
$
48
$
331
$
347
Income tax expense
15
16
108
112
Interest expense, net
26
26
100
100
Depreciation and amortization
30
30
121
121
Adjusted EBITDA
$
115
$
120
$
660
$
680
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240318006075/en/
Investor Contact Mark Swartzberg
Mark.Swartzberg@reynoldsbrands.com (847) 482-4081
Reynolds Consumer Products (NASDAQ:REYN)
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