Financial Data and Key Metrics Changes - Net revenues for 2024 reached $3.695 billion, exceeding initial guidance, with a 1% increase in retail volume [33][34] - Adjusted EBITDA for 2024 was $678 million, a $42 million or 7% increase from 2023, with a margin expansion of 140 basis points [34] - Free cash flow for the year was $369 million, contributing to a reduction in leverage to 2.3 times trailing 12 months adjusted EBITDA [34][35] - Adjusted earnings per share increased to $1.67, up 18% from $1.42 in 2023 [35] Business Line Data and Key Metrics Changes - All four business segments showed accelerating volume growth in Q4, with Hefty Waste & Storage and Reynolds Cooking & Baking each delivering 3 points of volume growth [36] - The tableware segment showed improving volume and share trends, while the Presto business unit remained flat [36] Market Data and Key Metrics Changes - Consolidated retail volume increased by 1% in Q4, with each business unit contributing to this growth [9] - The foam plate business, representing less than 10% of revenue, is facing secular headwinds, contributing to inconsistent earnings growth [17] Company Strategy and Development Direction - The company aims to expand its brands into new categories and enhance its portfolio of affordable, sustainable solutions [14] - A comprehensive program of action is being implemented to drive growth, expand margins, and improve shareholder value [18] - The focus is on increasing automation, enhancing production capabilities, and investing in productivity improvements [23][29] Management's Comments on Operating Environment and Future Outlook - Management anticipates a challenging consumer environment, with no significant catalysts for change in consumer behavior [123] - The company expects retail volume to perform at or better than category expectations, driven by increased investment in growth programs [42] - For 2025, net revenues are expected to decline low-single digits, primarily due to a projected double-digit decline in the foam category [40][41] Other Important Information - The company plans to invest in strategic initiatives in 2025, with expected annualized returns starting to benefit results late in the year [39] - The anticipated CEO transition costs and investments in strategic initiatives are estimated to be between $25 million to $35 million [39][130] Q&A Session Summary Question: What are the biggest changes required by the new program? - The company is focusing on a more targeted approach across the retail landscape and prioritizing innovation [53][54] Question: What are the input cost expectations for this year? - Commodities are expected to be a significant headwind, but the company has tools to offset these costs [58] Question: Can you comment on the competitive environment in the trash category? - The promotional environment has increased, but pricing in Waste & Storage remained flat [60][61] Question: What changes prompted the new management approach? - The company is focusing on strategic investments to drive growth in light of category forecasts [68] Question: How does the company plan to manage pricing in light of potential tariffs? - Pricing actions are designed to stay within key thresholds, with productivity also being a tool to offset costs [76][128] Question: Can you clarify the breakdown of the CEO transition costs? - Approximately half of the estimated costs are for CEO transition, with the other half for targeted investments [130]

For the quarter ended December 2024, Reynolds Consumer Products (REYN) reported revenue of $1.02 billion, up 1.4% over the same period last year. EPS came in at $0.58, compared to $0.65 in the year-ago quarter.The reported revenue compares to the Zacks Consensus Estimate of $974.33 million, representing a surprise of +4.79%. The company has not delivered EPS surprise, with the consensus EPS estimate being $0.58.While investors scrutinize revenue and earnings changes year-over-year and how they compare with ...

Reynolds Consumer Products (REYN) came out with quarterly earnings of $0.58 per share, in line with the Zacks Consensus Estimate. This compares to earnings of $0.65 per share a year ago. These figures are adjusted for non-recurring items.A quarter ago, it was expected that this company would post earnings of $0.42 per share when it actually produced earnings of $0.41, delivering a surprise of -2.38%.Over the last four quarters, the company has surpassed consensus EPS estimates two times.Reynolds Consumer Pr ...

Customer Concentration and Sales - In 2024, sales to the top ten customers accounted for 72% of total revenue, with Walmart and Sam's Club contributing 31% and 17% respectively[68]. - The company relies on a relatively small number of customers, and the loss of any significant customer could materially impact financial condition and results[68]. Cost and Pricing Pressures - The company experienced significant increases in raw material costs in 2022, particularly in resin and aluminum prices, negatively impacting results[72]. - Labor costs in the United States continue to rise, and labor shortages could adversely affect operating expenses and growth[77]. - The company implemented multiple rounds of price increases in 2022, but these typically lagged behind material cost increases[74]. - Economic downturns could lead to decreased demand for products, impacting sales and profitability[80]. - Global supply chain issues have resulted in an inflationary environment, impacting gross margin and operating results[82]. Competition and Market Dynamics - The company faces competition from major players like The Clorox Company and S.C. Johnson, which increases pricing pressure and necessitates continuous innovation[70]. - Future regulatory changes regarding environmental concerns could affect product demand and operational costs[79]. Financial Performance and Projections - Total net revenues for the year ended December 31, 2024, were $3,695 million, a decrease of 1.6% from $3,756 million in 2023[304]. - Gross profit increased to $978 million in 2024, up from $942 million in 2023, reflecting a gross margin improvement[304]. - Net income for 2024 was $352 million, representing a 17.9% increase compared to $298 million in 2023[304]. - Earnings per share (EPS) for 2024 were $1.68, up from $1.42 in 2023, indicating a 18.3% growth[304]. Debt and Interest Rate Risks - The company had $1,695 million in outstanding indebtedness under its senior secured term loan facility maturing in 2027 and $694 million of borrowing capacity under its senior secured revolving credit facility maturing in 2029[106]. - As of December 31, 2024, the unhedged portion of the company's Term Loan Facility was approximately $545 million, exposing it to interest rate risk[110]. - Higher interest rates during the year ended December 31, 2023, increased the company's debt service obligations on unhedged variable rate indebtedness, leading to a decrease in net income and cash flows[111]. - A 100-basis point increase in interest rates would result in a $5 million increase in annual interest expense on unhedged borrowings[284]. - Interest expense, net for 2024 was $98 million, a decrease from $119 million in 2023, attributed to lower interest rates and effective hedging[382]. Operational and Compliance Risks - Approximately 20% of the company's employees are covered by collective bargaining agreements, which could impact operations if work stoppages occur[102]. - The company is subject to various environmental, health, and safety laws, which could lead to significant liabilities and compliance costs[113]. - Increased regulatory requirements related to ESG matters may result in higher compliance and operational costs, impacting profitability[117]. - Stakeholders are increasingly focused on ESG issues, which could affect the company's access to capital and consumer demand for its products[115]. Asset Management and Financial Health - Total assets increased to $4,873 million in 2024 from $4,780 million in 2023, representing a growth of 1.95%[310]. - Cash and cash equivalents rose to $137 million in 2024, up from $115 million in 2023, marking an increase of 19.13%[310]. - Total stockholders' equity increased to $2,142 million in 2024 from $1,983 million in 2023, a rise of 8.02%[310]. - Long-term debt decreased to $1,686 million in 2024 from $1,832 million in 2023, a reduction of 7.99%[310]. Corporate Governance and Ownership Structure - PFL controls approximately 74% of the company's outstanding shares, allowing it to determine the outcome of corporate actions requiring stockholder approval[135]. - The company is classified as a "controlled company" under Nasdaq rules, which allows it to rely on exemptions from certain corporate governance requirements[144]. - Potential conflicts of interest may arise due to directors holding positions with PEI Group entities, affecting decision-making processes[149]. Product and Quality Risks - The company may incur liabilities and experience harm to its reputation due to product quality issues, which could lead to recalls and loss of market share[88]. - The company relies on intellectual property rights to protect its business, but there is a risk of infringement claims that could adversely affect operations[100]. Research and Development - Research and development expenses for the year ended December 31, 2024, were $45 million, up from $44 million in 2023 and $38 million in 2022[346]. Miscellaneous Financial Information - The company paid dividends of $192 million in both 2024 and 2023, maintaining a consistent dividend policy[316]. - The company recorded a depreciation and amortization expense of $129 million in 2024, compared to $124 million in 2023, an increase of 4.03%[316].

Financial Performance - Net income increased by 18% to $352 million for the fiscal year 2024, driven by improved margins and lower interest expenses [4] - Adjusted EBITDA for the fiscal year 2024 rose to $678 million, a 7% increase from $636 million in 2023, despite lower net revenues [6] - Net income for 2024 was $352 million, up from $298 million in 2023, reflecting a year-over-year increase of 17.9% [35] - Adjusted EBITDA for the year ended December 31, 2024, was $678 million, compared to $636 million in 2023, an increase of 6.6% [47] - Total revenues for the year ended December 31, 2024, were $3,695 million, slightly down from $3,756 million in 2023, a decrease of 1.6% [37] Retail Performance - Retail net revenues decreased to $3,518 million in 2024 from $3,559 million in 2023, reflecting a 1% decline in retail volume [6] - Retail volume in the fourth quarter grew by 1%, with notable performance in Reynolds Cooking & Baking and Hefty Waste & Storage segments [7] Cash Flow and Liquidity - Operating cash flow for the year ended December 31, 2024, was $489 million, representing a 72% conversion of adjusted EBITDA [6] - Cash provided by operating activities decreased to $489 million in 2024 from $644 million in 2023, a decline of 24.1% [35] - The company reported a decrease in cash used in financing activities to $346 million in 2024 from $457 million in 2023, a reduction of 24.2% [35] - Free cash flow decreased to $369 million in 2024 from $540 million in 2023, reflecting a decrease of about 32% [51] Debt and Leverage - Net debt leverage improved from 2.7x in 2023 to 2.3x in 2024, within the target range of 2.0 to 2.5x [5] - Net debt as of December 31, 2024, was $1,549 million, down from $1,717 million in 2023, a decrease of 9.8% [49] Capital Expenditures - Capital expenditures increased to $120 million in 2024 from $104 million in the prior year, focusing on automation and cost-saving programs [18] - Acquisition of property, plant and equipment increased to $120 million in 2024 compared to $104 million in 2023, indicating a rise of approximately 15% [51] Future Outlook - Full-year 2025 net revenues are expected to decline by low single digits compared to 2024's $3,695 million, with adjusted EBITDA projected between $670 million and $690 million [20] - The company anticipates continued focus on market expansion and product innovation in fiscal year 2025, although specific financial guidance was not provided [44] Dividend - The company declared a quarterly dividend of $0.23 per common share, payable on February 28, 2025 [23] Assets and Liabilities - Total assets increased to $4,873 million in 2024 from $4,780 million in 2023, representing a growth of 1.95% [33] - Total liabilities decreased to $2,731 million in 2024 from $2,797 million in 2023, a reduction of 2.4% [33]

Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors rely on traditional forms of analysis on key ...

Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use tried-and-true metrics and fundamental ...

Following my coverage on Reynolds Consumer Products (NASDAQ: REYN ) in Sep'24, which I upgraded to a hold rating due to better-than-expected performance, this post is to provide an update on my thoughts on the business and stock. Although valuationI take a fundamentals-based approach to value investing.I disagree with the common misconception held by many investors that low multiple stocks must be cheap. I look for companies that offer the best long-term durability at the most affordable prices. Consequentl ...

Reynolds Consumer Products Inc. (NASDAQ:REYN) Q3 2024 Earnings Conference Call October 30, 2024 8:00 AM ET Company Participants Mark Swartzberg - Vice President of Investor Relations Lance Mitchell - President & Chief Executive Officer Scott Huckins - Chief Financial Officer Conference Call Participants Nik Modi - RBC Capital Markets Andrea Teixeira - JPMorgan Mark Astrachan - Stifel Jim Abbott - Barclays Robert Ottenstein - Evercore Peter Grom - UBS Brian McNamara - Canaccord Genuity Operator Greetings and ...

Reynolds Consumer Products (REYN) reported $910 million in revenue for the quarter ended September 2024, representing a year-over-year decline of 2.7%. EPS of $0.41 for the same period compares to $0.37 a year ago.The reported revenue represents a surprise of +0.61% over the Zacks Consensus Estimate of $904.53 million. With the consensus EPS estimate being $0.42, the EPS surprise was -2.38%.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectati ...