LAKE FOREST, Ill. – Reynolds Consumer Products Inc . (NASDAQ: NASDAQ:) reported a robust first quarter with net revenues reaching $833 million, a slight decrease from $874 million in the first quarter of the previous year but surpassing the consensus estimate of $813.81 million. The company’s earnings per share (EPS) for the quarter were $0.23, edging out analyst expectations by $0.01.
The company’s net income saw a significant year-over-year (YoY) increase of 188%, rising to $49 million from $17 million in the first quarter of 2023.
Adjusted EBITDA also experienced a substantial boost, growing 49% to $122 million from $82 million YoY. This financial growth was attributed to enhanced manufacturing output and lower operational costs across all four business segments.
Reynolds Consumer Products’ CEO and President, Lance Mitchell, commented on the results.
“We delivered strong first quarter results reflecting our commitment to driving our categories, expanding margins and increasing financial flexibility. Our business is performing well and we are implementing plans to advance this performance while investing in strategic opportunities to drive growth.”
Looking ahead, Reynolds Consumer Products provided guidance for the second quarter of 2024, forecasting EPS in the range of $0.42 to $0.46, which is above the analyst consensus of $0.37. Revenue expectations for the second quarter are set between $875 million and $900 million, compared to the consensus estimate of $890.3 million.
For the full year 2024, the company has raised its net income outlook and now anticipates EPS to be between $1.62 and $1.70, with the lower end of the range aligning with the consensus of $1.62. Revenue guidance for the full year remains unchanged at $3.53 billion to $3.64 billion, versus a consensus of $3.602 billion.
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The company’s strategic initiatives and cost-saving measures, such as the Reyvolution program, have contributed to the positive financial performance and confidence in the raised guidance. CFO Scott Huckins expressed confidence in the company’s business model and its ability to execute well in an evolving macroeconomic environment.
Reynolds Consumer Products also announced a quarterly dividend of $0.23 per common share, payable on May 31, 2024, to shareholders of record as of May 17, 2024.
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