Reynolds Consumer Products Q1: Topline Beat Despite 2% Volume Decline, Reaffirmed Full Year Guide & More

  • Reynolds Consumer Products Inc REYN reported first-quarter FY23 sales growth of 3% year-on-year to $874 million, beating the consensus of $848.03 million.
  • Net revenues growth reflected the effect of price increases implemented last year more than offsetting a 2% volume decline.
  • Reynolds Cooking & Baking rose 6%, Hefty Waste & Storage grew 2%, Hefty Tableware rose 7%, and Presto Products climbed 2%.
  • Adjusted EPS of $0.08 was in-line with the consensus estimate.
  • Gross profit fell 7.7% to $155 million. The operating income decreased 35% to $52 million, with an operating margin of 5.9%.
  • Adjusted EBITDA decreased 26.8% Y/Y to $82 million.
  • The company held $50 million in cash and equivalents as of March 31, 2023. Net cash provided by operating activities for the quarter totaled $88 million.
  • The company's Board of Directors has approved a quarterly dividend of $0.23 per share, payable on May 31, 2023, to shareholders of record as of May 17, 2023.
  • CEO Lance Mitchell said, "The Reynolds Cooking & Baking recovery is off to a strong start, and our other three segments are also performing well, reflecting our category leadership and the advantage of our integrated brand and store brand model."
  • Outlook: REYN reiterated its FY23 outlook for revenue to be flat to +/-1% growth and EPS of $1.30 - $1.41 versus the $1.34 consensus.
  • REYN expects Q2 revenue to be flat to 2% growth and EPS of $0.27 - $0.30 (consensus $0.25).
  • Price Action: REYN shares are trading higher by 3.87% at $28.43 on the last check Wednesday.
  • Photo Via Company
Market News and Data brought to you by Benzinga APIs
Comments
Loading...
Date
ticker
name
Actual EPS
EPS Surprise
Actual Rev
Rev Surprise
Posted In: EarningsEquitiesNewsGuidanceDividendsMarketsGeneralBriefs
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!