Financial Performance - Net income increased by 18% to $352 million for the fiscal year 2024, driven by improved margins and lower interest expenses [4] - Adjusted EBITDA for the fiscal year 2024 rose to $678 million, a 7% increase from $636 million in 2023, despite lower net revenues [6] - Net income for 2024 was $352 million, up from $298 million in 2023, reflecting a year-over-year increase of 17.9% [35] - Adjusted EBITDA for the year ended December 31, 2024, was $678 million, compared to $636 million in 2023, an increase of 6.6% [47] - Total revenues for the year ended December 31, 2024, were $3,695 million, slightly down from $3,756 million in 2023, a decrease of 1.6% [37] Retail Performance - Retail net revenues decreased to $3,518 million in 2024 from $3,559 million in 2023, reflecting a 1% decline in retail volume [6] - Retail volume in the fourth quarter grew by 1%, with notable performance in Reynolds Cooking & Baking and Hefty Waste & Storage segments [7] Cash Flow and Liquidity - Operating cash flow for the year ended December 31, 2024, was $489 million, representing a 72% conversion of adjusted EBITDA [6] - Cash provided by operating activities decreased to $489 million in 2024 from $644 million in 2023, a decline of 24.1% [35] - The company reported a decrease in cash used in financing activities to $346 million in 2024 from $457 million in 2023, a reduction of 24.2% [35] - Free cash flow decreased to $369 million in 2024 from $540 million in 2023, reflecting a decrease of about 32% [51] Debt and Leverage - Net debt leverage improved from 2.7x in 2023 to 2.3x in 2024, within the target range of 2.0 to 2.5x [5] - Net debt as of December 31, 2024, was $1,549 million, down from $1,717 million in 2023, a decrease of 9.8% [49] Capital Expenditures - Capital expenditures increased to $120 million in 2024 from $104 million in the prior year, focusing on automation and cost-saving programs [18] - Acquisition of property, plant and equipment increased to $120 million in 2024 compared to $104 million in 2023, indicating a rise of approximately 15% [51] Future Outlook - Full-year 2025 net revenues are expected to decline by low single digits compared to 2024's $3,695 million, with adjusted EBITDA projected between $670 million and $690 million [20] - The company anticipates continued focus on market expansion and product innovation in fiscal year 2025, although specific financial guidance was not provided [44] Dividend - The company declared a quarterly dividend of $0.23 per common share, payable on February 28, 2025 [23] Assets and Liabilities - Total assets increased to $4,873 million in 2024 from $4,780 million in 2023, representing a growth of 1.95% [33] - Total liabilities decreased to $2,731 million in 2024 from $2,797 million in 2023, a reduction of 2.4% [33]

Core Viewpoint - The article emphasizes the importance of value investing and highlights Reynolds Consumer Products (REYN) as a strong candidate for investors seeking undervalued stocks [2][3][6] Group 1: Value Investing - Value investing is a popular strategy that relies on traditional analysis of key valuation metrics to identify undervalued stocks with profit potential [2] - The Zacks Rank system, which focuses on earnings estimates and revisions, is used to identify winning stocks, with a specific emphasis on value stocks [1][2] Group 2: Reynolds Consumer Products (REYN) - REYN currently holds a Zacks Rank of 2 (Buy) and has an A grade for Value, indicating it is among the best value stocks available [3][6] - The company's price-to-book (P/B) ratio is 2.82, significantly lower than the industry average of 6.72, suggesting it is undervalued [4] - REYN's price-to-cash flow (P/CF) ratio is 11.73, also lower than the industry average of 43.15, further indicating its potential undervaluation [5] - Over the past year, REYN's P/B ratio has fluctuated between 2.64 and 3.35, while its P/CF ratio has ranged from 10.97 to 14.72, showing stability in its valuation metrics [4][5]

Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use tried-and-true metrics and fundamental ...

Following my coverage on Reynolds Consumer Products (NASDAQ: REYN ) in Sep'24, which I upgraded to a hold rating due to better-than-expected performance, this post is to provide an update on my thoughts on the business and stock. Although valuationI take a fundamentals-based approach to value investing.I disagree with the common misconception held by many investors that low multiple stocks must be cheap. I look for companies that offer the best long-term durability at the most affordable prices. Consequentl ...

Exhibit 99.1 Reynolds Consumer Products Reports Third Quarter 2024 Financial Results Third Quarter Net Revenues, Retail Volume In Line with Expectations Third Quarter Net Income and Adjusted EBITDA Increased 10% and 4%, Respectively, In Line with Expectations Strong Free Cash Flow Delivery Continued; $50M Debt Prepayment Made After Quarter End Full Year Net Revenue, Net Income and Adjusted EBITDA Guide Updated Planned CEO and CFO Transition Announced LAKE FOREST, IL, October 30, 2024 – (BUSINESSWIRE) – Reyn ...

Reynolds Consumer Products (REYN) appears an attractive pick, as it has been recently upgraded to a Zacks Rank #2 (Buy). This upgrade primarily reflects an upward trend in earnings estimates, which is one of the most powerful forces impacting stock prices. The Zacks rating relies solely on a company's changing earnings picture. It tracks EPS estimates for the current and following years from the sell-side analysts covering the stock through a consensus measure -- the Zacks Consensus Estimate. Individual inv ...

Investors interested in Consumer Discretionary stocks should always be looking to find the best-performing companies in the group. Reynolds Consumer Products (REYN) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? A quick glance at the company's year-to-date performance in comparison to the rest of the Consumer Discretionary sector should help us answer this question. Reynolds Consumer Products is one of 277 companies i ...

For the quarter ended June 2024, Reynolds Consumer Products (REYN) reported revenue of $930 million, down 1.1% over the same period last year. EPS came in at $0.46, compared to $0.32 in the year-ago quarter. The reported revenue compares to the Zacks Consensus Estimate of $886.11 million, representing a surprise of +4.95%. The company delivered an EPS surprise of +4.55%, with the consensus EPS estimate being $0.44. While investors scrutinize revenue and earnings changes year-over-year and how they compare w ...

Financial Data and Key Metrics Changes - The company reported a strong second quarter with retail revenues increasing by 1% to $892 million, exceeding expectations [11] - Consolidated revenues declined by 1%, reflecting the retail revenue increase and a 2-point decrease in low-margin non-retail revenues [11] - Adjusted EBITDA increased by $22 million to $172 million, driven by manufacturing volume output and lower operational costs [12] - Earnings per share rose to $0.46, up $0.14 from the second quarter of 2023 [12] - Year-to-date retail revenues reached $1.687 billion, while low-margin non-retail revenues declined to $77 million [12] - Adjusted EBITDA for the year-to-date increased by $62 million to $294 million [12] Business Line Data and Key Metrics Changes - The Reynolds Cooking & Baking business continued to perform strongly, with Reynolds Wrap gaining additional market share in the household foil category [7] - Hefty and Presto Waste & Storage bag businesses showed sequential improvement in sales volumes, driven by product innovation [8] - The disposable tableware segment saw a decrease of 1% in volume, an improvement from declines of 6% in the first quarter and 8% in the second half of the previous year [9] Market Data and Key Metrics Changes - The company noted that retail trends improved sequentially in a challenging economic environment characterized by declines in personal savings and high household debt [5] - The overall categories were approximately 130 basis points stronger in MULO+ than in Nielsen track channels, indicating better performance in newer retail channels [17] Company Strategy and Development Direction - The company is focused on product innovation and expanding its range of sustainable offerings, aiming to provide sustainable solutions in all categories by 2025 [6] - The Reyvolution cost savings initiative is expected to remain a major driver of margin and profit growth over the long term [18] - The company plans to continue leading its categories by leveraging its business model and investing in its product portfolio [18] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the pressure on consumers due to economic factors but emphasized that their products are affordable and convenient, benefiting from a shift towards home consumption [30] - The company expects modest sequential improvement in retail volumes in the second half of the year [11] - Management remains confident in their promotional strategies and the stability of their pricing despite broader economic challenges [30] Other Important Information - The company raised its full-year 2024 revenue outlook to a range of $3.590 billion to $3.670 billion, reflecting strong second-quarter performance [13] - The adjusted EBITDA forecast for the full year was raised to a range of $670 million to $685 million [14] - The company expects free cash flow of over $300 million for the full year and aims to maintain net debt leverage within a target of 2 to 2.5 times adjusted EBITDA [17] Q&A Session Summary Question: Can you take us through the various building blocks behind the expected moderate improvement in retail volume in the second half? - Management explained that they start with reported retail volumes, adjusting for product portfolio optimization and retail order timing differences, expecting sequential improvement from Q1 to Q2 and further improvements into Q3 and Q4 [21] Question: How is the broader economy affecting your performance? - Management noted that the pressure on out-of-home dining has led consumers to eat more at home, benefiting their categories of household essentials [22] Question: Can you provide an update on how things are going in Q3 or July so far? - Management indicated that July performance was in line with expectations, with consumer takeaway in their categories also meeting expectations [25] Question: What is driving the outperformance in new scanner data channels? - Management highlighted that MULO+ captures a broader cross-section of consumer behavior, showing better performance compared to Nielsen [26] Question: How do you see the gross margin progression for the rest of the year? - Management expects a 200 basis point improvement in gross margin for the full year, with slight expansion in Q3 and contraction in Q4 due to increased costs [36] Question: What is the status of the Hefty Tableware turnaround efforts? - Management reported effective promotions driving volume recovery, although it did impact margins to some extent [41] Question: How are you seeing trade downs between brands and private label? - Management noted that private label sales volume has returned to 2019 levels, with a modest increase in private label in some categories while also driving brand share [46]

Q2 2024 Financial Performance - Net revenues for Q2 2024 reached $930 million[6] - Adjusted EBITDA for Q2 2024 was $172 million, resulting in an 18% margin[6] - Reynolds Cooking & Baking segment's net revenues were $304 million, with an adjusted EBITDA of $56 million and an 18% margin[8] - Hefty Waste & Storage segment's net revenues were $238 million, with an adjusted EBITDA of $69 million and a 29% margin[10] - Hefty Tableware segment's net revenues were $245 million, with an adjusted EBITDA of $39 million and a 16% margin[11] - Presto Products segment's net revenues were $150 million, with an adjusted EBITDA of $37 million and a 25% margin[12] Year-to-Date (YTD) Financial Performance - Net revenues YTD reached $1764 million[7] - Adjusted EBITDA YTD was $294 million, resulting in a 17% margin[7] Full Year 2024 Outlook - The company expects net revenues between $3590 million and $3670 million[13] - Adjusted EBITDA is projected to be between $670 million and $685 million[13] - Net income is expected to be between $346 million and $358 million[13]