Reynolds Consumer Products (REYN) Q3 2024 earnings summary

Executive summary

• Q3 2024 net revenues were $910M, down from $935M in Q3 2023, with net income up 10% to $86M and adjusted EBITDA up 4% to $171M, reflecting strong cost efficiencies and innovation investments.

• Leadership transition announced: Scott Huckins to become CEO and Nathan Lowe to become CFO effective January 1, 2025.

• Business remains on track for its second-best earnings year since going public, with robust cash flow and a strong balance sheet.

• Focus on innovation, sustainability, and productivity to drive growth and margin expansion, with a goal of sustainable options across all product lines by 2025.

Financial highlights

• Q3 2024 net revenues were $910M, with adjusted EBITDA of $171M (19% margin), and net income of $86M; EPS was $0.41, up from $0.37.

• Year-to-date net revenues were $2,675M, adjusted EBITDA $465M (17% margin), and net income $231M; YTD EPS was $1.10, up from $0.77.

• Free cash flow for Q3 was $93M; operating cash flow for nine months was $307M.

• Net debt at quarter-end was $1,639M, with net debt leverage reduced to 2.3x trailing 12-month adjusted EBITDA.

• Gross margin improved to 26% for both the quarter and nine months.

Outlook and guidance

• Full-year 2024 net revenues guided to $3,620M–$3,660M; adjusted EBITDA $673M–$683M; EPS $1.66–$1.70; net debt projected at ~$1.5B.

• Q4 2024 outlook: net revenues $945M–$985M, adjusted EBITDA $208M–$218M, EPS $0.56–$0.60.

• Quarterly cash dividend of $0.23 per share declared for Q4 2024.

• Guidance assumes 1% pricing reduction, flat to slightly positive retail volume, and 2% lower non-retail volume.

• Commodity costs, especially aluminum and resins, are up 10–15% since January 2024; SG&A and tax rate assumptions unchanged.