Reynolds Consumer Products sees FY24 revenue $3.5B-3.64B, consensus $3.75B

The Company guides full-year 2024 net revenues to be approximately $3,530 million to $3,640 million versus prior year net revenues of $3,756 million consisting of the following assumptions: 1% reduction from pricing; 3% reduction from lower non-retail volume and further optimization of the retail product portfolio; 2% reduction to 1% increase from retail volume at or better than category forecasts ;The Company guides first quarter 2024 net revenues to be approximately $795 M to $820M versus prior year net revenues of $874M consisting of the following assumptions: Unchanged pricing and4.5% reduction from lower non-retail volume and further optimization of the retail product portfolio 4.5% to 1.5% reduction from retail volume at or better than category forecasts; Commodity rates are expected to remain more stable than in recent years. The Company forecasts Adjusted EBITDA growth to be driven by retail volume at or above category forecasts, further improvements in product mix, the Reynolds Cooking & Baking business’ recovery of historical earnings and delivery of additional Reyvolution cost savings. Net income growth is forecasted to be driven by the same factors driving Adjusted EBITDA, in addition to an approximately $20 million expected reduction in interest expense compared to 2023 net interest expense of $119 million. The Company forecasts phasing of quarterly Adjusted EBITDA returning to historical averages. “We expanded margins over 250 basis points in 2023 and over 500 basis points in the fourth quarter, helping drive a reduction in leverage by more than one turn of EBITDA for the year, further demonstrating RCP’s durable business model and strong cash flow generation,” said Scott Huckins, Chief Financial Officer. “In 2024, we expect to drive additional earnings growth by investing in our categories and product innovation, further optimizing our retail product mix and unlocking additional productivity, allowing us to achieve our targeted leverage range by year end, increasing our financial flexibility.”