Reynolds Consumer Products raises revenue outlook as pricing offsets volume drops
Adjusted earnings per share rose 8% to $0.42 in the second quarter.
Reynolds Consumer Products (REYN), the household products maker, reported second-quarter net revenues of $944 million.
The results marked a shift in volume trends for the company. Retail volumes decreased 5% compared to the same period last year, a reversal from the 2% increase recorded in the first quarter. When excluding foam products, the retail volume decline was 2%.
Net revenues rose from $938 million in the second quarter of 2024. Adjusted earnings per share increased 8% to $0.42, up from $0.39 a share in the prior-year period. Adjusted EBITDA rose to $171 million from $163 million, as manufacturing efficiency gains offset higher selling, general and administrative costs and lower volumes.
Performance varied across the company's realigned operating segments. Reynolds Cooking & Kitchen Essentials net revenues increased $19 million to $314 million, supported by 19 points of pricing to offset commodity costs despite an 8% drop in retail volumes. Hefty Storage & Organization reached a record second quarter with net revenues of $176 million, driven by an 8% increase in retail volumes, though Adjusted EBITDA fell $3 million to $27 million due to costs associated with ramping up new business.
Other segments faced headwinds. Hefty Home & Tableware net revenues decreased $25 million to $217 million because of declines in foam. However, Adjusted EBITDA for that segment rose $8 million to $43 million on the back of reduced promotional activity and manufacturing efficiency. Hefty Waste & Clean-Up net revenues decreased $3 million to $233 million, and its Adjusted EBITDA fell $3 million to $69 million.
Non-retail net revenues increased to $56 million from $51 million in the prior-year quarter.
Reynolds increased its full-year 2024 net revenues outlook to a range of 1% to 3% growth compared to 2023 net revenues of $3,721 million. The higher guidance is attributed to increased pricing net of elasticity.