Reynolds Consumer Products Reports Inc. a leading provider of household products that simplify daily life, today announced its financial results for the fourth quarter and fiscal year ended December 31, 2024. The company also shared its outlook for fiscal year 2025, highlighting its commitment to innovation, cost savings, and long-term growth.
Fiscal Year 2024 Highlights
For the full year 2024, Reynolds Consumer Products delivered solid financial performance despite challenging market conditions. Key highlights include:
- Net Revenues: $3,695 million, compared to $3,756 million in 2023.
- Retail Net Revenues: $3,518 million, down slightly from $3,559 million in 2023.
- Non-Retail Net Revenues: $177 million, compared to $197 million in 2023, reflecting lower aluminum sales to food service and industrial customers.
- Net Income and Adjusted Net Income: Increased 18% to $352 million, up from $298 million in 2023.
- EBITDA and Adjusted EBITDA: Grew 7% to $678 million, compared to $636 million in 2023, driven by lower operational costs and disciplined cost management.
- Earnings Per Share (EPS) and Adjusted EPS: Improved to $1.67, up from $1.42 in 2023.
- Operating Cash Flow: $489 million, representing a 72% conversion of Adjusted EBITDA.
Reynolds Consumer Products Retail volume decreased by 1% for the year, impacted by a one-point headwind from product portfolio optimization efforts. Despite this, the Reynolds Consumer Products company successfully expanded margins and improved profitability, with Net Income increasing 18% to $352 million. Adjusted EBITDA rose 7% to $678 million, reflecting lower operational costs and effective cost-saving initiatives.
Additionally, the company made significant progress in reducing its leverage ratio. Net Debt Leverage decreased from 2.7x at the end of 2023 to 2.3x at the end of 2024, well within its target range of 2.0 to 2.5x.
Scott Huckins, President and Chief Executive Officer, expressed optimism about the company’s future. “Our retail volume accelerated in the fourth quarter, and we have the team, business model, and resources to drive strong growth, further margin expansion,Reynolds Consumer Products and Reynolds Consumer Products consistently attractive shareholder returns, he said. Reynolds and Hefty are very strong brands, and we enter 2025 committed to executing new and existing programs to realize even more of RCP’s potential.
Fourth Quarter 2024 Highlights
The fourth quarter of 2024 demonstrated continued momentum, with key metrics as follows:
- Net Revenues: $1,021 million, up from $1,007 million in Q4 2023.
- Retail Net Revenues: $975 million, slightly higher than $972 million in Q4 2023.
- Non-Retail Net Revenues: $46 million, compared to $35 million in Q4 2023, reflecting growth in aluminum sales.
- Net Income and Adjusted Net Income: Decreased 12% to $121 million, compared to $137 million in Q4 2023.
- EBITDA and Adjusted EBITDA: Declined 11% to $213 million, compared to $238 million in Q4 2023.
- Earnings Per Share (EPS) and Adjusted EPS: Fell to $0.58, down from $0.65 in Q4 2023.
Retail volume grew by 1%, consistent with overall category performance, and showed acceleration across all four business units. However, the company faced Reynolds Consumer Products anticipated higher operational costs and lower pricing, which contributed to the decline in Adjusted EBITDA and Net Income. Notably, Q4 2023 earnings were a company record, disproportionately contributing to the full-year results relative to historical trends.
Segment Performance
- Reynolds Cooking & Baking:
- Net Revenues increased $17 million to $374 million, driven by retail and non-retail growth.
- Adjusted EBITDA decreased $7 million to $82 million due to higher operational costs and lower pricing, partially offset by higher volume.
- Retail volume grew 3%, supported by Reynolds Wrap share gains and growth in Reynolds Kitchens products.
- Hefty Waste & Storage:
- Net Revenues rose $8 million to $245 million.
- Adjusted EBITDA declined $5 million to $68 million, reflecting higher operational costs.
- Retail volume increased 3%, with Hefty Waste & Storage outperforming its categories, driven by strong demand for products like Hefty Fabuloso® waste bags and Press to Close food bags.
- Hefty Tableware:
- Net Revenues decreased $8 million to $251 million.
- Adjusted EBITDA fell $6 million to $52 million, impacted by lower foam plate volume and higher operational costs.
- Retail volume declined 2%, though excluding foam plates, volume outperformed its categories.
- Presto Products:
- Net revenues remained flat at $153 million.
- Adjusted EBITDA decreased $4 million to $30 million, primarily due to higher operational costs.
Balance Sheet and Cash Flow Highlights
Reynolds Consumer Products maintained a strong balance sheet and robust cash flow generation in 2024. Key highlights include:
- Cash and cash equivalents totaled $137 million at year-end, with debt at $1,686 million, resulting in net debt of $1,549 million and a Net Debt Leverage ratio of 2.3x.
- Operating cash flow was $489 million, driven by strong profitability and disciplined working capital management.
- Capital expenditures increased to $120 million, up from $104 million in 2023, reflecting investments in automation and cost-saving initiatives to support growth and margin expansion.
- Subsequent to the quarter’s end, the company made a voluntary principal payment of $50 million on its term loan facility.
Nathan Lowe, Chief Financial Officer, Reynolds Consumer Products emphasized the company’s financial strength. The strength of our balance sheet, cash flows, and capital allocation discipline position us very well for increased investment, growth, and profitability, he said. We are applying our returns-based framework to a robust pipeline of product innovation and cost savings programs, and we look forward to unlocking even more of RCP’s potential in 2025 and over the long-term.
