Reynolds Consumer Products Inc. (REYN) Tops Q4 EPS by 0.2c, Revenues Beat; Offers 1Q & FY21 Revenue Guidance Above Consensus, 1Q EPS Outlook Above Consensus
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Reynolds Consumer Products Inc. (NASDAQ: REYN) reported Q4 EPS of $0.57, $0.00 better than the analyst estimate of $0.57. Revenue for the quarter came in at $888 million versus the consensus estimate of $879.08 million.
Fourth Quarter 2020 Highlights
- Net Revenues of $888 million, up 6% on prior year net revenues
- Net Income of $112 million; Adjusted Net Income of $119 million 2
- Earnings Per Share of $0.53; Adjusted Earnings Per Share of $0.572
- Adjusted EBITDA of $198 million 2 , down 7% from prior year Adjusted EBITDA
Net revenues growth was driven by a shift to more at-home use of Company products and the introduction of several new products. The increase in Adjusted EBITDA was driven by the increase in net revenues and lower material and manufacturing costs, partially offset by higher personnel, advertising and logistics costs.
“We reported record performance in 2020, our first year as a public company, delivering strong results because of the hard work, dedication, and commitment of our more than 5,000 employees in a very difficult environment,” said Lance Mitchell, President and Chief Executive Officer. “We expect to build on last year’s performance with another year of record net revenues. We will continue to grow with our categories due to a sustained and fundamental shift in consumer demand coupled with our innovations and best in class service. Our role as category champions aligns us with our retailers, who are also invested in continued growth. We expect 2021 to be another dynamic year, and I look forward to a second consecutive year of strong performance as a public company.”
The increase in net revenues was driven by strong demand, most significantly in our Hefty Waste & Storage segment, and the introduction of new products. The decrease in Adjusted EBITDA was primarily due to increased material and manufacturing, logistics, advertising and personnel costs.
Reynolds Consumer Products Inc. sees Q1 2021 EPS of $0.35-$0.37, versus the consensus of $0.31. Reynolds Consumer Products Inc. sees Q1 2021 revenue of $730 million, versus the consensus of $704.06 million.
Reynolds Consumer Products Inc. sees FY2021 EPS of $1.96-$2.03, versus the consensus of $2.01. Reynolds Consumer Products Inc. sees FY2021 revenue of $3.623 billion, versus the consensus of $3.24 billion.
The Company expects the following results for its fiscal year ended December 31, 2021:
- Net revenues to grow low single digits on $3,263 million in the prior year
- Net Income to be in the range of $400 million to $415 million; Adjusted Net Income to be in the range of $412 million to $427 million 3
- Earnings Per Share to be in the range of $1.90 to $1.98 per share; Adjusted Earnings Per Share to be in the range of $1.96 to $2.03 per share 3
- Adjusted EBITDA to be in the range of $710 million to $730 million3
- Net Debt to be in the range of $1.7 billion to $1.8 billion 3 at December 31, 2021
- The Company expects the following results for its first quarter ended March 31, 2021:
- Net revenues to grow mid-single digits on $730 million in the prior year
- Net Income to be in the range of $71 million to $75 million; Adjusted Net Income to be in the range of $73 million to $77 million 3
- Earnings Per Share to be in the range of $0.34 to $0.36 per share; Adjusted Earnings Per Share to be in the range of $0.35 to $0.37 per share 3
- Adjusted EBITDA to be in the range of $138 million to $143 million 3
“As you can see, we expect another year of record net revenues,” said Michael Graham, Chief Financial Officer, “and we are committed to protecting profitability with pricing and cost management to counter rising commodity, logistics and other costs. We expect a strong start to the year, followed by the effect of unfavorable volume and cost comparisons in the second and third quarters and a benefit from more favorable cost comparisons in the fourth quarter.”
For earnings history and earnings-related data on Reynolds Consumer Products Inc. (REYN) click here.
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