Reynolds Consumer Products(US:REYN)2023-11-08 14:15Financial Performance - Total net revenues decreased by 3% to $935 million for the three months ended September 30, 2023, compared to $967 million in the same period in 2022[73]. - Net income improved by 63% to $78 million for the three months ended September 30, 2023, compared to $48 million in the prior year period[74]. - Adjusted EBITDA increased by 42% to $165 million for the three months ended September 30, 2023, compared to $116 million in the same period in 2022[90]. - Total net revenues decreased by $32 million, or 3%, to $935 million, primarily driven by lower volume, slightly offset by higher pricing[92]. - Adjusted EBITDA increased by $49 million, or 42%, to $165 million, mainly due to higher pricing and lower material and manufacturing costs[96]. - Total net revenues for the nine months ended September 30, 2023, increased by $21 million, or 1%, to $2,750 million, driven by higher pricing[113]. - Adjusted EBITDA for the nine months ended September 30, 2023, increased by $52 million, or 15%, to $398 million, primarily due to higher pricing and lower costs[117]. Segment Performance - The Reynolds Cooking & Baking segment generated $312 million in net revenues, while the Hefty Waste & Storage segment generated $244 million, and the Hefty Tableware segment generated $233 million for Q3 2023[88]. - Hefty Waste & Storage segment net revenues increased by $7 million, or 3%, to $244 million, driven by higher pricing[100]. - Hefty Tableware segment net revenues decreased by $18 million, or 7%, to $233 million, primarily due to lower volume[102]. - Presto Products segment net revenues decreased by $3 million, or 2%, to $152 million, mainly due to lower volume[104]. - Hefty Waste & Storage total segment net revenues increased by $1 million, or 0.1%, to $705 million, primarily driven by higher pricing[121]. - Hefty Waste & Storage Adjusted EBITDA rose by $53 million, or 39%, to $188 million, mainly due to higher pricing and lower material costs[122]. - Hefty Tableware total segment net revenues increased by $7 million, or 1%, to $708 million, driven by higher pricing[123]. - Hefty Tableware Adjusted EBITDA increased by $45 million, or 63%, to $117 million, primarily due to higher pricing and lower logistics costs[124]. - Presto Products total segment net revenues decreased by $6 million, or 1%, to $441 million, primarily due to lower volume[125]. - Presto Products Adjusted EBITDA increased by $11 million, or 16%, to $78 million, driven by lower material and logistics costs[126]. Cost and Expenses - Gross profit margin improved to 27% in Q3 2023, up from 18% in Q3 2022, reflecting a $71 million increase in gross profit[90]. - Selling, general and administrative expenses increased by 28% to $115 million in Q3 2023, compared to $90 million in Q3 2022[90]. - Selling, general and administrative expenses increased by $25 million, or 28%, to $115 million, primarily due to higher personnel and advertising costs[93]. - Cost of sales decreased by $103 million, or 13%, to $686 million, attributed to lower volume and reduced material and manufacturing costs[93]. Interest and Debt - Interest expense decreased by 55% to $31 million in Q3 2023, down from $20 million in Q3 2022[90]. - Interest expense increased by $43 million, or 90%, to $91 million, due to higher interest rates[116]. - As of September 30, 2023, the outstanding balance under the Term Loan Facility was $1,995 million, with no outstanding borrowings under the Revolving Facility[134]. Cash Flow - Net cash provided by operating activities increased by $305 million to $423 million, driven by improved earnings and reduced working capital[130]. - Net cash used in investing activities decreased by $9 million to $77 million, primarily due to decreased capital expenditures[131]. - Net cash used in financing activities increased by $97 million to $260 million, mainly due to a voluntary principal payment of $100 million related to the Term Loan Facility[132]. Market Position - The company holds the 1 market position in the U.S. consumer foil market with over 50% market share in most categories[71]. - Over 65% of the company's revenue comes from products that are 1 in their respective categories[69]. - The company has a presence in 95% of households across the United States, indicating strong market penetration[69].