Reynolds Consumer Products Reports 3% Decline in Net Revenues, 10% Increase in Net Income for Q3 2024

Reynolds Consumer Products Inc. reported a decline in net revenues for the third quarter of 2024, totaling $910 million, down 3% from $935 million in the same period of 2023. This decrease was attributed primarily to lower sales volume across its product lines. For the nine months ended September 30, 2024, total net revenues also fell by 3% to $2,675 million compared to $2,750 million in the prior year.

Despite the revenue decline, the company experienced an increase in profitability. Net income for the third quarter rose to $86 million, a 10% increase from $78 million in the previous year, driven by reduced selling, general, and administrative expenses, as well as lower material and manufacturing costs. For the nine-month period, net income surged 43% to $231 million, compared to $161 million in 2023. This growth in net income was supported by a decrease in interest expenses and material costs, although it was partially offset by a higher income tax expense.

Gross profit for the third quarter was $239 million, down from $249 million in 2023, while gross profit for the nine months increased to $698 million, up from $633 million in the prior year. The company reported an adjusted EBITDA of $171 million for the third quarter, a slight increase from $165 million in 2023, and $465 million for the nine months, up from $398 million in the previous year.

Segment performance varied, with Reynolds Cooking & Baking generating $305 million in revenues for the third quarter, a decrease of 2% from the prior year. The Hefty Waste & Storage segment saw a 2% increase in revenues to $248 million, while Hefty Tableware revenues fell by 7% to $217 million. Presto Products reported a slight decline in revenues to $149 million, although adjusted EBITDA for this segment increased due to product portfolio optimization.

As of September 30, 2024, total assets increased to $4,843 million from $4,780 million at the end of 2023, with total stockholders’ equity rising to $2,065 million. Long-term debt decreased to $1,735 million from $1,832 million, reflecting the company’s ongoing efforts to manage its debt levels through voluntary principal payments.

The company continues to maintain a strong market position, holding the #1 or #2 market share in most of its product categories, with over 65% of revenue derived from products that lead their respective markets. Reynolds Consumer Products remains focused on optimizing its operations and managing costs to enhance profitability amid fluctuating market conditions.