- 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
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