Exhibit 99.1 Reynolds Consumer Products Reports First Quarter 2024 Financial Results First Quarter Net Income and Adjusted EBITDA Increased 188% and 49% First Quarter 2024 Highlights Retail volume performed at the high end of Company expectations, decreasing 3% which includes over 1% of portfolio optimization. The Company continued to lead its categories with several performing slightly better than expected in the quarter. Net Income increased $32 million and Adjusted EBITDA increased $40 million, or 49%, o ...

Reynolds Consumer Products Inc. (NASDAQ:REYN) Q4 2023 Earnings Conference Call February 7, 2024 8:00 AM ET Company Participants Mark Swartzberg - Vice President of Investor Relations Lance Mitchell - President and Chief Executive Officer Scott Huckins - Chief Financial Officer Conference Call Participants Robert Ottenstein - Evercore ISI Lauren Lieberman - Barclays Mark Astrachan - Stifel Brian McNamara - Canaccord Genuity Andrea Teixeira - JPMorgan Operator Greetings and welcome to the Reynolds Consumer Pr ...

Revenue Concentration - In 2023, sales to the top ten customers accounted for 72% of total revenue, with Walmart and Sam's Club contributing 30% and 18% respectively[66]. - The company relies on a relatively small number of customers for revenue, making it vulnerable to demand fluctuations and potential loss of significant customers[66]. Cost Pressures - The company experienced significant increases in raw material costs in both 2021 and 2022, particularly in resin and aluminum prices, negatively impacting results[70]. - Labor costs in the United States continue to rise, and the company faces potential labor shortages, which could adversely affect operating expenses and growth[75]. - The company has implemented multiple rounds of price increases in 2021 and 2022, but these actions typically lagged behind material cost increases[72]. - Global supply chain issues and inflationary pressures have previously led to increased raw material and input costs, which may impact future operating results[80]. Economic and Market Risks - Economic downturns and market conditions could lead to decreased demand for the company's products, impacting financial performance[78]. - The company operates in competitive markets, facing pressure to continuously innovate and maintain strong customer relationships[68]. - Future regulatory changes related to environmental concerns could affect product demand and operational practices, impacting financial results[77]. Financial Performance - Total net revenues for the year ended December 31, 2023, were $3,756 million, a decrease of 1.6% compared to $3,817 million in 2022[295]. - Gross profit increased to $942 million in 2023, up from $776 million in 2022, reflecting a gross margin improvement[295]. - Net income for 2023 was $298 million, representing a 15.5% increase from $258 million in 2022[295]. - The company recorded earnings per share of $1.42 for 2023, compared to $1.23 in 2022, indicating a 15.5% increase[295]. Debt and Interest Rate Risks - The company has $1,845 million in outstanding indebtedness under its senior secured term loan facility, maturing in 2027, and $244 million of borrowing capacity under its senior secured revolving credit facility, maturing in 2026[100]. - As of December 31, 2023, the unhedged portion of the company's Term Loan Facility was approximately $695 million, exposing it to interest rate risk[104]. - Higher interest rates during the year ended December 31, 2023, have increased the company's debt service obligations on unhedged variable rate indebtedness, leading to a decrease in net income and cash flows[105]. Operational Challenges - Approximately 23% of the company's employees are covered by collective bargaining agreements, which could impact operations if work stoppages occur[96]. - The company may face challenges in acquiring or integrating product lines or businesses, which could adversely affect its financial condition and results of operations[90]. - The company may incur liabilities or harm to its reputation due to product quality issues, which could lead to recalls and financial losses[86]. Goodwill and Intangible Assets - The company has recorded significant goodwill and indefinite-lived intangible assets, which are subject to impairment testing; any impairment could materially affect results[95]. - Goodwill is tested for impairment annually in the fourth quarter, with key assumptions including forecasted Adjusted EBITDA and relevant earnings multiples[325]. - Indefinite-lived intangible assets are tested for impairment annually, using the relief-from-royalty method based on planned revenue growth rates and market-based discount rates[328]. Regulatory and Compliance Risks - The company is subject to various environmental, health, and safety laws, which could lead to significant liabilities and compliance costs[107]. - Increased regulatory efforts aimed at reducing plastic waste may impact demand for certain plastic products and increase costs for manufacturers[108]. - New legal and regulatory requirements related to ESG could result in increased compliance and operational costs, potentially disrupting manufacturing processes[110]. ESG Considerations - Stakeholders are increasingly focused on ESG matters, which could hinder the company's access to capital and affect profitability due to changing consumer preferences[109]. - Failure to meet ESG goals or respond to regulatory changes may lead to decreased consumer demand and harm the company's reputation[111]. Shareholder Dynamics - PFL controls approximately 74% of the company's outstanding shares, allowing it to determine the outcome of corporate actions requiring stockholder approval[128]. - The concentration of PFL's ownership may discourage other parties from making tender offers, potentially preventing stockholders from receiving a premium for their shares[130]. - The company may be unable to negotiate favorable terms for agreements with PEI Group due to PFL's control over the board of directors[144]. Cash Flow and Investments - Cash provided by operating activities rose significantly to $644 million in 2023 from $219 million in 2022, marking a substantial increase of 194.5%[307]. - The company reported a net cash used in investing activities of $110 million in 2023, compared to $128 million in 2022[307]. - The company paid dividends of $192 million in both 2022 and 2023, maintaining a consistent dividend policy[307]. Accounting and Reporting - The company recognizes revenue when control over products transfers to customers, generally upon delivery or shipment[332]. - Revenue is recorded net of estimated sales incentives, which are monitored and adjusted each period until realized[333]. - The company has adopted several accounting standards updates, including ASU 2023-07 and ASU 2023-09, which enhance disclosures related to segment reporting and income taxes, respectively[353][354].

Financial Data and Key Metrics Changes - The company delivered net revenues and earnings at the upper end of expectations for the quarter, with an EBITDA margin expansion of more than 500 basis points across all businesses [7][31] - Net debt to trailing 12-month adjusted EBITDA decreased from 3.8 times at the end of 2022 to 3.1 times at the end of September 2023, with an additional voluntary debt payment of $100 million made after the quarter [32][33] - Full year net revenue estimate is now 2% lower than the prior year, consisting of 2% higher pricing and 4% lower volume [15] Business Line Data and Key Metrics Changes - The Reynolds Cooking & Baking segment met volume, operational, and gross profit objectives for three consecutive quarters, with Reynolds Wrap increasing market share by nearly 300 basis points [26] - The Hefty brand in waste and food bags is performing well, with retail sales approaching $2 billion, driven by innovation and increased market share [9][10] - The disposable tableware segment is facing challenges, with plans to improve volume trends through adjustments in pricing and pack sizes [27][28] Market Data and Key Metrics Changes - Retail sales volume is stably growing in the three largest categories, with a noted shift towards untracked channels [8] - The company is benefiting from a competitive advantage due to a competitor's cybersecurity incident, which has positively impacted Hefty’s market share in waste bags [19] Company Strategy and Development Direction - The company is focused on deleveraging faster than anticipated while maintaining capital allocation priorities, including disciplined investments in automation and margin expansion [23] - An acquisition was made to enhance research and development capabilities in sustainable products, aligning with the company's recycling program [21][41] - The company aims to ensure consumers have access to sustainable product options across all categories by 2025 [43] Management's Comments on Operating Environment and Future Outlook - Management acknowledged significant economic challenges, including inflation and rising interest rates, impacting sales volume across consumer staples [8] - The company remains confident in its ability to improve trends in disposable tableware and anticipates further margin expansion [29][34] - Future guidance indicates stable to growing retail volume in aluminum foil, waste bags, and food bags, with a decline expected in disposable tableware volume [15] Other Important Information - The company has successfully implemented the Reynolds Cooking & Baking Recovery Plan, leading to increased market share and operational efficiencies [26] - The transition of CFO roles is noted, with Michael Graham stepping down and Scott Huckins taking over [4][13] Q&A Session Summary Question: Changes since August and volume performance expectations for 2024 - Management noted that while there are challenges, Hefty was already driving volume and share prior to a competitor's incident, which has continued to benefit the company [18][19] Question: Insights on M&A and acquisition goals - The acquisition was seen as a unique opportunity to enhance R&D in sustainable products, aligning with existing initiatives [21][41] Question: Opportunities for profitability reset within tableware - Management confirmed that there are plans to adjust pricing and pack sizes to improve profitability in the tableware segment [46] Question: Impact of competitor disruptions on market share - Management indicated that while there were benefits from a competitor's issues, it is premature to comment on the sustainability of these gains [53] Question: Revenue guidance changes and tableware business performance - The decline in tableware volume was highlighted, with a significant increase in EBITDA margins noted [55] Question: Balance between gross margin expansion and reinvestment - Management emphasized that the priority remains on deleveraging while also investing in the business as opportunities arise [62]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 _______________________________________________________________________________________ _______________________________________________________________________________________ FORM 10-Q (Mark One) x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2023 OR o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT O ...

Reynolds Consumer Products Inc. Reconciliation of Net Debt to Total Debt (amounts in millions) Outlook Reconciliation of Net Income to Adjusted EBITDA Three Months Ended September 30, 2023 Year Ended December 31, 2023 Reynolds Consumer Products Inc. Reconciliation of Q3 2023 and FY2023 Net Income Guidance to Adjusted EBITDA Guidance (amounts in millions) Safe Harbor This presentation contains statements reflecting our views about our future performance that constitute "forward-looking statements" within the ...

Financial Data and Key Metrics Changes - Net revenues increased by 3% year-over-year, driven by price increases and strong volumes in Reynolds Cooking & Baking, which saw a 12% overall increase and a 15% increase in the retail business [6][8] - Operating cash flow for the year-to-date reached $207 million, representing a $106 million increase compared to the same period last year [9] - Net income and adjusted EBITDA also increased over the prior year, supported by margin expansion across all businesses [8][49] Business Line Data and Key Metrics Changes - Reynolds Cooking & Baking achieved restored profitability and operational improvements, contributing to overall earnings growth [5][11] - Hefty Waste and Storage volumes decreased by 8%, while Hefty Tableware volumes declined by 7% and Presto Products volumes decreased by 3% [7][8] - The Fabuloso product line reached $140 million in retail sales during the second quarter, indicating strong growth [31] Market Data and Key Metrics Changes - Reynolds Wrap gained over 5 points of brand share in the foil category, benefiting from improved retail price points and successful holiday promotions [29] - Non-retail sales are expected to decline by approximately $60 million, impacting consolidated volume growth by about 2 points [37][49] Company Strategy and Development Direction - The company is focused on restoring profitability across all business lines and has implemented a comprehensive plan for Reynolds Cooking & Baking [19][20] - Increased advertising and trade investments are planned to drive growth, particularly around key retail events and seasonal periods [30][23] - Sustainability initiatives are being pursued, including partnerships to develop environmentally friendly products [14][33] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to continue strong earnings growth and cash flow for the remainder of 2023 [16][20] - The company anticipates a challenging economic environment but remains focused on providing value and performance to consumers [15][14] - Future guidance indicates expectations for net revenues to be in line with the prior year, with a slight increase in pricing and a decrease in volume [48][49] Other Important Information - The search for a new CFO is progressing well, with an announcement expected before the next earnings release [41] - The company is experiencing mixed growth signals in the economy, impacting consumer confidence [14] Q&A Session Summary Question: Insights on household inventories and pricing - Management explained that household inventories are monitored through proprietary surveys, indicating trends in consumer restocking intentions [38] Question: Q3 sales guidance and volume expectations - The Q3 guidance reflects a 1% to 3% decline in retail sales, primarily due to inventory built from prior promotions [44][46] Question: Impact of weather on consumer demand - Management noted that while weather events had some impact on manufacturing, they did not significantly affect consumer demand [121] Question: Long-term volume growth expectations - Management indicated that volume growth is consistent with category performance, with share gains across all categories [131] Question: Gross margin recovery expectations - Management expects to return to high-20s gross margins over time, supported by ongoing recovery plans and cost-saving initiatives [90]

PART I. FINANCIAL INFORMATION This section presents unaudited financial statements, notes, and management's discussion of financial condition and operations [Item 1. Financial Statements (Unaudited)](index=2&type=section&id=Item%201.%20Financial%20Statements%20%28Unaudited%29) This section presents the unaudited condensed consolidated financial statements for Reynolds Consumer Products Inc., including statements of income, comprehensive income, balance sheets, stockholders' equity, and cash flows, along with detailed notes explaining the company's business, accounting policies, debt, financial instruments, segment information, and related party transactions for the periods ended June 30, 2023 and 2022 [Condensed Consolidated Statements of Income](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) Unaudited condensed consolidated statements of income for the three and six months ended June 30, 2023 and 2022 Condensed Consolidated Statements of Income (in millions, except for per share data) | Metric | Three Months Ended June 30, 2023 | Three Months Ended June 30, 2022 | Six Months Ended June 30, 2023 | Six Months Ended June 30, 2022 | | :--------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Total Net Revenues | $940 | $917 | $1,814 | $1,762 | | Cost of Sales | $(712) | $(733) | $(1,430) | $(1,410) | | Gross Profit | $228 | $184 | $384 | $352 | | Income from Operations | $120 | $86 | $171 | $166 | | Net Income | $66 | $52 | $83 | $104 | | Basic EPS | $0.32 | $0.25 | $0.40 | $0.50 | | Diluted EPS | $0.32 | $0.25 | $0.40 | $0.50 | [Condensed Consolidated Statements of Comprehensive Income](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income) Unaudited condensed consolidated statements of comprehensive income for the three and six months ended June 30, 2023 and 2022 Condensed Consolidated Statements of Comprehensive Income (in millions) | Metric | Three Months Ended June 30, 2023 | Three Months Ended June 30, 2022 | Six Months Ended June 30, 2023 | Six Months Ended June 30, 2022 | | :--------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net Income | $66 | $52 | $83 | $104 | | Other Comprehensive Income, net of income taxes | $13 | $3 | $0 | $10 | | Comprehensive Income | $79 | $55 | $83 | $114 | [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Unaudited condensed consolidated balance sheets as of June 30, 2023, and December 31, 2022 Condensed Consolidated Balance Sheets (in millions) | Metric | As of June 30, 2023 | As of December 31, 2022 | | :--------------------------------- | :------------------ | :---------------------- | | Total Current Assets | $1,146 | $1,171 | | Total Assets | $4,882 | $4,929 | | Total Current Liabilities | $465 | $496 | | Total Liabilities | $3,023 | $3,061 | | Total Stockholders' Equity | $1,859 | $1,868 | [Condensed Consolidated Statements of Stockholders' Equity](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Stockholders'%20Equity) Unaudited condensed consolidated statements of stockholders' equity for the six months ended June 30, 2023 Condensed Consolidated Statements of Stockholders' Equity (in millions) | Metric | Balance as of Dec 31, 2022 | Net Income (6 months) | Other Comprehensive Loss (6 months) | Dividends Paid (6 months) | Other (6 months) | Balance as of June 30, 2023 | | :--------------------------------- | :------------------------- | :-------------------- | :---------------------------------- | :------------------------ | :--------------- | :-------------------------- | | Total Equity | $1,868 | $83 | $0 | $(96) | $4 | $1,859 | [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Unaudited condensed consolidated statements of cash flows for the six months ended June 30, 2023 and 2022 Condensed Consolidated Statements of Cash Flows (in millions) for the Six Months Ended June 30 | Metric | 2023 | 2022 | | :--------------------------------- | :--- | :--- | | Net Cash Provided by Operating Activities | $207 | $101 | | Net Cash Used in Investing Activities | $(51) | $(56) | | Net Cash Used in Financing Activities | $(111) | $(108) | | Net Increase (Decrease) in Cash and Cash Equivalents | $45 | $(63) | | Cash and Cash Equivalents at End of Period | $83 | $101 | [Notes to Unaudited Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) Detailed notes on business, accounting policies, debt, financial instruments, segment information, and related parties [Note 1 – Description of Business and Basis of Presentation](index=9&type=section&id=Note%201%20%E2%80%93%20Description%20of%20Business%20and%20Basis%20of%20Presentation) This note describes Reynolds Consumer Products Inc.'s business segments and the basis of financial statement presentation - Reynolds Consumer Products Inc. produces and sells cooking, waste and storage, and tableware products under brands like Reynolds and Hefty, as well as store brands. The company operates through four segments: Reynolds Cooking & Baking, Hefty Waste & Storage, Hefty Tableware, and Presto Products[25](index=25&type=chunk) - The unaudited condensed consolidated financial statements are prepared in accordance with GAAP for interim financial information and SEC regulations, reflecting normal recurring adjustments. Operating results for interim periods are not necessarily indicative of annual results[26](index=26&type=chunk)[27](index=27&type=chunk) - In March 2023, the company initiated a voluntary Supply Chain Finance (SCF) program, allowing qualifying suppliers to sell their receivables to a financial institution. The company is not party to these agreements and its payment obligations are unaffected. Obligations outstanding under SCF were not material as of June 30, 2023[28](index=28&type=chunk) [Note 2 – New Accounting Standards](index=9&type=section&id=Note%202%20%E2%80%93%20New%20Accounting%20Standards) This note details the adoption of new accounting standards related to reference rate reform and supplier finance programs - The company adopted ASU 2020-04 and ASU 2021-01 (Reference Rate Reform) as of January 1, 2023, amending its Credit Agreement and interest rate swaps from LIBOR to SOFR. This adoption had **no material impact** on the financial statements[29](index=29&type=chunk) - ASU 2022-04 (Liabilities - Supplier Finance Programs) was adopted as of January 1, 2023, requiring disclosure of key terms and a rollforward of related obligations. This standard relates to disclosure only and does not impact the financial statements[30](index=30&type=chunk) [Note 3 – Inventories](index=10&type=section&id=Note%203%20%E2%80%93%20Inventories) This note provides a breakdown of inventory categories and their values as of June 30, 2023, and December 31, 2022 Inventories (in millions) | Category | June 30, 2023 | December 31, 2022 | | :----------------- | :------------ | :---------------- | | Raw materials | $180 | $215 | | Work in progress | $65 | $81 | | Finished goods | $321 | $383 | | Spare parts | $48 | $43 | | **Total Inventories** | **$614** | **$722** | [Note 4 – Debt](index=10&type=section&id=Note%204%20%E2%80%93%20Debt) This note details the company's long-term debt, including the Term Loan and Revolving Credit Facilities, and covenant compliance Long-term Debt (in millions) | Metric | June 30, 2023 | December 31, 2022 | | :--------------------------------- | :------------ | :---------------- | | Term loan facility | $2,095 | $2,107 | | Deferred financing transaction costs | $(13) | $(14) | | Original issue discounts | $(1) | $(2) | | Less: current portion | $(25) | $(25) | | **Long-term debt** | **$2,056** | **$2,066** | - The company's External Debt Facilities, consisting of a **$2,475 million Term Loan Facility** and a **$250 million Revolving Credit Facility**, were amended in February 2023 to replace LIBOR with SOFR as the interest rate benchmark. The Term Loan Facility matures in February 2027 and amortizes in quarterly installments of **$6 million**. The Revolving Facility matures in February 2025[33](index=33&type=chunk)[38](index=38&type=chunk)[39](index=39&type=chunk) - As of June 30, 2023, the outstanding balance under the Term Loan Facility was **$2,095 million**, with no outstanding borrowings under the Revolving Facility, but **$6 million** in letters of credit. The company is in compliance with all debt covenants[35](index=35&type=chunk)[39](index=39&type=chunk) [Note 5 - Financial Instruments](index=12&type=section&id=Note%205%20-%20Financial%20Instruments) This note describes the company's use of interest rate swaps to hedge a portion of its Term Loan Facility's interest rate exposure - The company uses interest rate swaps to hedge a portion of its Term Loan Facility's interest rate exposure, fixing SOFR at an annual rate of **0.40% to 3.40%** (effective **2.15% to 5.15%** including margin) for an aggregate notional amount of **$1,150 million** as of June 30, 2023. These are classified as cash flow hedges[41](index=41&type=chunk)[42](index=42&type=chunk)[43](index=43&type=chunk) [Note 6 – Stock-based Compensation](index=13&type=section&id=Note%206%20%E2%80%93%20Stock-based%20Compensation) This note outlines the company's equity incentive plan and stock-based compensation expense for the periods presented - The equity incentive plan, established in 2020, grants RSUs and PSUs to management, directors, and employees. As of June 30, 2023, **0.7 million shares** were outstanding under stock-based compensation awards, up from **0.4 million** at December 31, 2022[44](index=44&type=chunk)[45](index=45&type=chunk) Stock-based Compensation Expense (in millions) | Period | 2023 | 2022 | | :--------------------------------- | :--- | :--- | | Three Months Ended June 30 | $3 | $2 | | Six Months Ended June 30 | $6 | $3 | [Note 7 – Commitments and Contingencies](index=13&type=section&id=Note%207%20%E2%80%93%20Commitments%20and%20Contingencies) This note addresses legal proceedings and tax examinations, assessing their potential financial impact - The company is involved in various legal proceedings and tax examinations arising from operations. While outcomes are unpredictable, management believes these matters will not have a material adverse effect on financial position, results of operations, or cash flows as of June 30, 2023[46](index=46&type=chunk) [Note 8 – Accumulated Other Comprehensive Income](index=14&type=section&id=Note%208%20%E2%80%93%20Accumulated%20Other%20Comprehensive%20Income) This note details components of accumulated other comprehensive income, including currency, employee benefits, and derivatives Accumulated Other Comprehensive Income (in millions) | Component | Balance as of Dec 31, 2022 | Gain/Loss Arising During Q2 2023 | Reclassification to Earnings Q2 2023 | Effect of Deferred Taxes Q2 2023 | Balance as of June 30, 2023 | | :--------------------------------- | :------------------------- | :------------------------------- | :----------------------------------- | :------------------------------- | :-------------------------- | | Currency Translation Adjustments | $(7) | — | — | — | $(7) | | Employee Benefit Plans | $23 | — | $(1) | — | $21 | | Interest Rate Derivatives | $36 | $25 | $(7) | $(4) | $38 | | **Total Accumulated Other Comprehensive Income** | **$52** | **$25** | **$(8)** | **$(4)** | **$52** | [Note 9 – Segment Information](index=14&type=section&id=Note%209%20%E2%80%93%20Segment%20Information) This note provides financial data for the company's four reportable segments, including net revenues, Adjusted EBITDA, and assets - The company operates four reportable segments: Reynolds Cooking & Baking, Hefty Waste & Storage, Hefty Tableware, and Presto Products. These segments are defined by internal operations and product nature, reflecting how the CEO monitors performance and allocates resources[50](index=50&type=chunk) Segment Net Revenues (in millions) for the Three Months Ended June 30 | Segment | 2023 | 2022 | | :--------------------------------- | :--- | :--- | | Reynolds Cooking & Baking | $321 | $294 | | Hefty Waste & Storage | $229 | $238 | | Hefty Tableware | $251 | $240 | | Presto Products | $145 | $150 | | Unallocated | $(6) | $(5) | | **Total Net Revenues** | **$940** | **$917** | Segment Adjusted EBITDA (in millions) for the Three Months Ended June 30 | Segment | 2023 | 2022 | | :--------------------------------- | :--- | :--- | | Reynolds Cooking & Baking | $40 | $36 | | Hefty Waste & Storage | $62 | $46 | | Hefty Tableware | $45 | $25 | | Presto Products | $28 | $25 | | Unallocated | $(25) | $(14) | | **Total Adjusted EBITDA** | **$150** | **$118** | Segment Net Revenues (in millions) for the Six Months Ended June 30 | Segment | 2023 | 2022 | | :--------------------------------- | :--- | :--- | | Reynolds Cooking & Baking | $604 | $562 | | Hefty Waste & Storage | $463 | $466 | | Hefty Tableware | $475 | $450 | | Presto Products | $288 | $292 | | Unallocated | $(16) | $(8) | | **Total Net Revenues** | **$1,814** | **$1,762** | Segment Adjusted EBITDA (in millions) for the Six Months Ended June 30 | Segment | 2023 | 2022 | | :--------------------------------- | :--- | :--- | | Reynolds Cooking & Baking | $43 | $64 | | Hefty Waste & Storage | $117 | $91 | | Hefty Tableware | $76 | $48 | | Presto Products | $47 | $44 | | Unallocated | $(51) | $(17) | | **Total Adjusted EBITDA** | **$232** | **$230** | Segment Assets (in millions) | Segment | As of June 30, 2023 | As of December 31, 2022 | | :--------------------------------- | :------------------ | :---------------------- | | Reynolds Cooking & Baking | $609 | $646 | | Hefty Waste & Storage | $278 | $314 | | Hefty Tableware | $217 | $226 | | Presto Products | $247 | $274 | | Segment Total | $1,351 | $1,460 | | Unallocated | $3,531 | $3,469 | | **Total Assets** | **$4,882** | **$4,929** | [Note 10 – Related Party Transactions](index=18&type=section&id=Note%2010%20%E2%80%93%20Related%20Party%20Transactions) This note describes the company's transactions with Pactiv Evergreen Inc., including sales, purchases, and dividends - PFL, the majority owner of Reynolds Consumer Products Inc., also owns the majority of Pactiv Evergreen Inc. (PEI Group). The company engages in sales and purchases of goods and services with PEI Group under contractual arrangements, some of which were amended in H1 2023 to extend expiration dates[62](index=62&type=chunk) Related Party Transactions (in millions) | Metric | Three Months Ended June 30, 2023 | Three Months Ended June 30, 2022 | Six Months Ended June 30, 2023 | Six Months Ended June 30, 2022 | | :--------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Revenues from products sold to PEI Group | $18 | $21 | $40 | $48 | | Products purchased from PEI Group | $93 | $100 | $199 | $194 | | Freight and warehousing costs charged by PEI Group | $9 | $15 | $18 | $29 | | Dividends paid to PFL | $36 | $36 | $71 | $71 | [Note 11 – Subsequent Events](index=18&type=section&id=Note%2011%20%E2%80%93%20Subsequent%20Events) This note reports on significant events after the reporting period, including a cash dividend and a voluntary debt payment - On July 27, 2023, the Board of Directors approved a cash dividend of **$0.23 per common share**, payable on August 31, 2023. Subsequent to June 30, 2023, the company made a voluntary principal payment of **$100 million** on its Term Loan Facility[65](index=65&type=chunk)[66](index=66&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=15&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's perspective on the company's financial performance and condition, including an overview of business segments, consolidated results for the three and six months ended June 30, 2023, and a detailed discussion of liquidity and capital resources. It highlights key drivers of revenue and profit changes, segment-specific performance, and the impact of non-GAAP measures [Description of the Company and its Business Segments](index=19&type=section&id=Description%20of%20the%20Company%20and%20its%20Business%20Segments) This section provides an overview of Reynolds Consumer Products' market position and its four core business segments - Reynolds Consumer Products is a market-leading consumer products company present in **95% of U.S. households**, holding **1 or 2 market share** in most product categories, with over **65% of revenue** from 1 ranked products. The company's portfolio includes cooking, waste and storage, and tableware products under brands like Reynolds and Hefty, as well as store brands[69](index=69&type=chunk)[70](index=70&type=chunk) - The company manages four segments: Reynolds Cooking & Baking (aluminum foil, wraps, bakeware), Hefty Waste & Storage (trash and food storage bags), Hefty Tableware (disposable plates, cups, cutlery), and Presto Products (store brand food storage, trash bags, and resealable closure systems). Each segment holds strong market positions and offers sustainable solutions[71](index=71&type=chunk) [Overview](index=20&type=section&id=Overview) This section summarizes the company's overall financial performance, highlighting changes in net revenues and net income - Total net revenues increased by **3%** for both the three and six months ended June 30, 2023, primarily due to the timing of pricing actions to offset increased costs. Higher volume in Reynolds Cooking & Baking was offset by lower volume in other segments[73](index=73&type=chunk) - Net income improved by **27%** in the three months ended June 30, 2023, driven by higher pricing and decreased material/logistics costs, partially offset by increased manufacturing costs, SG&A, interest, and tax expenses[74](index=74&type=chunk) - Net income declined by **20%** in the six months ended June 30, 2023, primarily due to higher material and manufacturing costs, SG&A, and interest expense, partially offset by higher pricing and decreased logistics costs[75](index=75&type=chunk) [Non-GAAP Measures](index=20&type=section&id=Non-GAAP%20Measures) This section explains the company's use of non-GAAP financial measures like Adjusted EBITDA and Adjusted EPS for performance evaluation - The company uses non-GAAP financial measures such as "Adjusted EBITDA," "Adjusted Net Income," and "Adjusted Diluted Earnings Per Share" (Adjusted EPS) to evaluate operating performance and make strategic decisions. These measures exclude the impact of specified items like IPO and separation-related costs[77](index=77&type=chunk)[78](index=78&type=chunk)[79](index=79&type=chunk) Reconciliation of Net Income (GAAP) to Adjusted EBITDA (Non-GAAP) (in millions) | Metric | Three Months Ended June 30, 2023 | Three Months Ended June 30, 2022 | Six Months Ended June 30, 2023 | Six Months Ended June 30, 2022 | | :--------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net Income – GAAP | $66 | $52 | $83 | $104 | | Income tax expense | $23 | $18 | $28 | $34 | | Interest expense, net | $31 | $16 | $60 | $28 | | Depreciation and amortization | $30 | $29 | $61 | $57 | | IPO and separation-related costs | $0 | $3 | $0 | $7 | | **Adjusted EBITDA (Non-GAAP)** | **$150** | **$118** | **$232** | **$230** | Reconciliation of Net Income and Diluted EPS (GAAP) to Adjusted (Non-GAAP) | Metric | Three Months Ended June 30, 2023 | Three Months Ended June 30, 2022 | Six Months Ended June 30, 2023 | Six Months Ended June 30, 2022 | | :--------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net Income – GAAP | $66 | $52 | $83 | $104 | | IPO and separation-related costs (after tax) | $0 | $2 | $0 | $5 | | **Adjusted Net Income (Non-GAAP)** | **$66** | **$54** | **$83** | **$109** | | Diluted EPS – GAAP | $0.32 | $0.25 | $0.40 | $0.50 | | IPO and separation-related costs (per share) | $0.00 | $0.01 | $0.00 | $0.02 | | **Adjusted EPS (Non-GAAP)** | **$0.32** | **$0.26** | **$0.40** | **$0.52** | [Results of Operations – Three Months Ended June 30, 2023](index=22&type=section&id=Results%20of%20Operations%20%E2%80%93%20Three%20Months%20Ended%20June%2030%2C%202023) For the three months ended June 30, 2023, total net revenues increased by 3% to $940 million, driven by pricing actions. Gross profit rose 24% to $228 million due to lower material and logistics costs. Net income increased 27% to $66 million, and Adjusted EBITDA grew 27% to $150 million. Segment performance varied, with Reynolds Cooking & Baking showing volume growth, while other segments experienced volume declines [Total Reynolds Consumer Products (3 months)](index=24&type=section&id=Total%20Reynolds%20Consumer%20Products%20%283%20months%29) This section details consolidated financial performance for Q2 2023, including revenue, gross profit, and net income changes Total Reynolds Consumer Products Financial Performance (in millions, except for %) | Metric | Q2 2023 | Q2 2022 | Change | % Change | | :--------------------------------- | :------ | :------ | :----- | :------- | | Total Net Revenues | $940 | $917 | $23 | 3% | | Cost of Sales | $(712) | $(733) | $21 | 3% | | Gross Profit | $228 | $184 | $44 | 24% | | Selling, General and Administrative Expenses | $(107) | $(91) | $(16) | (18)% | | Income from Operations | $120 | $86 | $34 | 40% | | Interest Expense, Net | $(31) | $(16) | $(15) | (94)% | | Income Before Income Taxes | $89 | $70 | $19 | 27% | | Net Income | $66 | $52 | $14 | 27% | | Adjusted EBITDA | $150 | $118 | $32 | 27% | Components of Change in Net Revenues (Q2 2023 vs. Q2 2022) | Segment | Price | Volume/Mix | Total | | :--------------------------------- | :---- | :--------- | :---- | | Reynolds Cooking & Baking | (3)% | 12% | 9% | | Hefty Waste & Storage | 4% | (8)% | (4)% | | Hefty Tableware | 12% | (7)% | 5% | | Presto Products | 0% | (3)% | (3)% | | **Total RCP** | **3%** | **0%** | **3%** | - Cost of sales decreased by **$21 million (3%)** due to lower material and logistics costs, partially offset by higher manufacturing costs. SG&A expenses increased by **$16 million (18%)** primarily due to higher personnel costs, advertising, and professional fees. Interest expense, net, increased by **$15 million (94%)** due to higher interest rates[92](index=92&type=chunk)[93](index=93&type=chunk) [Segment Information (3 months)](index=26&type=section&id=Segment%20Information%20%283%20months%29) This section provides a detailed breakdown of financial performance for each operating segment for Q2 2023 [Reynolds Cooking & Baking (3 months)](index=26&type=section&id=Reynolds%20Cooking%20%26%20Baking%20%283%20months%29) This section details the Reynolds Cooking & Baking segment's revenue and Adjusted EBITDA performance for Q2 2023 Reynolds Cooking & Baking Performance (in millions, except for %) | Metric | Q2 2023 | Q2 2022 | Change | % Change | | :--------------------------------- | :------ | :------ | :----- | :------- | | Total Segment Net Revenues | $321 | $294 | $27 | 9% | | Segment Adjusted EBITDA | $40 | $36 | $4 | 11% | | Segment Adjusted EBITDA Margin | 12% | 12% | | | - Revenue increase was primarily due to higher volume (retail sales up **15%**), partially offset by lower pricing from trade and promotional investments. Adjusted EBITDA increased due to higher volume, partially offset by lower pricing[99](index=99&type=chunk)[100](index=100&type=chunk) [Hefty Waste & Storage (3 months)](index=26&type=section&id=Hefty%20Waste%20%26%20Storage%20%283%20months%29) This section details the Hefty Waste & Storage segment's revenue and Adjusted EBITDA performance for Q2 2023 Hefty Waste & Storage Performance (in millions, except for %) | Metric | Q2 2023 | Q2 2022 | Change | % Change | | :--------------------------------- | :------ | :------ | :----- | :------- | | Total Segment Net Revenues | $229 | $238 | $(9) | (4)% | | Segment Adjusted EBITDA | $62 | $46 | $16 | 35% | | Segment Adjusted EBITDA Margin | 27% | 19% | | | - Revenue decrease was primarily due to lower volume, partially offset by higher pricing. Adjusted EBITDA increased significantly due to lower material costs and higher pricing, partially offset by lower volume and higher manufacturing costs[101](index=101&type=chunk)[102](index=102&type=chunk) [Hefty Tableware (3 months)](index=26&type=section&id=Hefty%20Tableware%20%283%20months%29) This section details the Hefty Tableware segment's revenue and Adjusted EBITDA performance for Q2 2023 Hefty Tableware Performance (in millions, except for %) | Metric | Q2 2023 | Q2 2022 | Change | % Change | | :--------------------------------- | :------ | :------ | :----- | :------- | | Total Segment Net Revenues | $251 | $240 | $11 | 5% | | Segment Adjusted EBITDA | $45 | $25 | $20 | 80% | | Segment Adjusted EBITDA Margin | 18% | 10% | | | - Revenue increase was primarily due to the timing of pricing actions, partially offset by lower volume. Adjusted EBITDA saw a substantial increase, driven by pricing actions and lower logistics costs, partially offset by higher material/manufacturing costs and lower volume[103](index=103&type=chunk)[104](index=104&type=chunk) [Presto Products (3 months)](index=28&type=section&id=Presto%20Products%20%283%20months%29) This section details the Presto Products segment's revenue and Adjusted EBITDA performance for Q2 2023 Presto Products Performance (in millions, except for %) | Metric | Q2 2023 | Q2 2022 | Change | % Change | | :--------------------------------- | :------ | :------ | :----- | :------- | | Total Segment Net Revenues | $145 | $150 | $(5) | (3)% | | Segment Adjusted EBITDA | $28 | $25 | $3 | 12% | | Segment Adjusted EBITDA Margin | 19% | 17% | | | - Revenue decrease was primarily due to lower volume. Adjusted EBITDA increased due to lower material and logistics costs, partially offset by higher manufacturing costs and lower volume[105](index=105&type=chunk)[106](index=106&type=chunk) [Results of Operations – Six Months Ended June 30, 2023](index=28&type=section&id=Results%20of%20Operations%20%E2%80%93%20Six%20Months%20Ended%20June%2030%2C%202023) For the six months ended June 30, 2023, total net revenues increased by 3% to $1,814 million, driven by pricing actions. Gross profit increased 9% to $384 million. However, net income decreased 20% to $83 million, and Adjusted EBITDA saw a modest 1% increase to $232 million. Segment performance showed mixed results, with Reynolds Cooking & Baking experiencing a decline in Adjusted EBITDA despite revenue growth [Total Reynolds Consumer Products (6 months)](index=29&type=section&id=Total%20Reynolds%20Consumer%20Products%20%286%20months%29) This section details consolidated financial performance for H1 2023, including revenue, gross profit, and net income changes Total Reynolds Consumer Products Financial Performance (in millions, except for %) | Metric | H1 2023 | H1 2022 | Change | % Change | | :--------------------------------- | :------ | :------ | :----- | :------- | | Total Net Revenues | $1,814 | $1,762 | $52 | 3% | | Cost of Sales | $(1,430) | $(1,410) | $(20) | (1)% | | Gross Profit | $384 | $352 | $32 | 9% | | Selling, General and Administrative Expenses | $(212) | $(174) | $(38) | (22)% | | Income from Operations | $171 | $166 | $5 | 3% | | Interest Expense, Net | $(60) | $(28) | $(32) | (114)% |\ | Income Before Income Taxes | $111 | $138 | $(27) | (20)% | | Net Income | $83 | $104 | $(21) | (20)% | | Adjusted EBITDA | $232 | $230 | $2 | 1% | Components of Change in Net Revenues (H1 2023 vs. H1 2022) | Segment | Price | Volume/Mix | Total | | :--------------------------------- | :---- | :--------- | :---- | | Reynolds Cooking & Baking | 0% | 7% | 7% | | Hefty Waste & Storage | 5% | (6)% | (1)% | | Hefty Tableware | 13% | (7)% | 6% | | Presto Products | 0% | (1)% | (1)% | | **Total RCP** | **4%** | **(1)%** | **3%** | - Cost of sales increased by **$20 million (1%)** due to higher material and manufacturing costs, partially offset by lower volume and logistics costs. SG&A expenses increased by **$38 million (22%)** due to higher personnel, professional fees, and advertising costs. Interest expense, net, increased by **$32 million (114%)** due to higher interest rates[115](index=115&type=chunk)[117](index=117&type=chunk) [Segment Information (6 months)](index=31&type=section&id=Segment%20Information%20%286%20months%29) This section provides a detailed breakdown of financial performance for each operating segment for H1 2023 [Reynolds Cooking & Baking (6 months)](index=31&type=section&id=Reynolds%20Cooking%20%26%20Baking%20%286%20months%29) This section details the Reynolds Cooking & Baking segment's revenue and Adjusted EBITDA performance for H1 2023 Reynolds Cooking & Baking Performance (in millions, except for %) | Metric | H1 2023 | H1 2022 | Change | % Change | | :--------------------------------- | :------ | :------ | :----- | :------- | | Total Segment Net Revenues | $604 | $562 | $42 | 7% | | Segment Adjusted EBITDA | $43 | $64 | $(21) | (33)% | | Segment Adjusted EBITDA Margin | 7% | 11% | | | - Revenue increase was primarily driven by higher volume (retail sales up **10%**). Adjusted EBITDA decreased significantly due to higher material and manufacturing costs, partially offset by higher volume[121](index=121&type=chunk)[122](index=122&type=chunk) [Hefty Waste & Storage (6 months)](index=31&type=section&id=Hefty%20Waste%20%26%20Storage%20%286%20months%29) This section details the Hefty Waste & Storage segment's revenue and Adjusted EBITDA performance for H1 2023 Hefty Waste & Storage Performance (in millions, except for %) | Metric | H1 2023 | H1 2022 | Change | % Change | | :--------------------------------- | :------ | :------ | :----- | :------- | | Total Segment Net Revenues | $463 | $466 | $(3) | (1)% | | Segment Adjusted EBITDA | $117 | $91 | $26 | 29% | | Segment Adjusted EBITDA Margin | 25% | 20% | | | - Revenue decrease was primarily driven by lower volume, partially offset by pricing actions. Adjusted EBITDA increased due to lower material costs and pricing actions, partially offset by higher manufacturing costs, lower volume, and higher advertising costs[123](index=123&type=chunk)[124](index=124&type=chunk) [Hefty Tableware (6 months)](index=31&type=section&id=Hefty%20Tableware%20%286%20months%29) This section details the Hefty Tableware segment's revenue and Adjusted EBITDA performance for H1 2023 Hefty Tableware Performance (in millions, except for %) | Metric | H1 2023 | H1 2022 | Change | % Change | | :--------------------------------- | :------ | :------ | :----- | :------- | | Total Segment Net Revenues | $475 | $450 | $25 | 6% | | Segment Adjusted EBITDA | $76 | $48 | $28 | 58% | | Segment Adjusted EBITDA Margin | 16% | 11% | | | - Revenue increase was primarily driven by pricing actions, partially offset by lower volume. Adjusted EBITDA increased significantly due to pricing actions and lower logistics costs, partially offset by higher material/manufacturing costs and lower volume[125](index=125&type=chunk)[126](index=126&type=chunk) [Presto Products (6 months)](index=32&type=section&id=Presto%20Products%20%286%20months%29) This section details the Presto Products segment's revenue and Adjusted EBITDA performance for H1 2023 Presto Products Performance (in millions, except for %) | Metric | H1 2023 | H1 2022 | Change | % Change | | :--------------------------------- | :------ | :------ | :----- | :------- | | Total Segment Net Revenues | $288 | $292 | $(4) | (1)% | | Segment Adjusted EBITDA | $47 | $44 | $3 | 7% | | Segment Adjusted EBITDA Margin | 16% | 15% | | | - Revenue decrease was primarily due to lower volume. Adjusted EBITDA increased due to lower material and logistics costs, partially offset by higher manufacturing costs and lower volume[127](index=127&type=chunk)[128](index=128&type=chunk) [Liquidity and Capital Resources](index=32&type=section&id=Liquidity%20and%20Capital%20Resources) This section analyzes the company's cash flow, debt facilities, and other capital management activities for the periods presented [Cash Flow Summary](index=32&type=section&id=Cash%20Flow%20Summary) This section summarizes the company's cash flows from operating, investing, and financing activities for H1 Cash Flows (in millions) for the Six Months Ended June 30 | Metric | 2023 | 2022 | | :--------------------------------- | :--- | :--- | | Net Cash Provided by Operating Activities | $207 | $101 | | Net Cash Used in Investing Activities | $(51) | $(56) | | Net Cash Used in Financing Activities | $(111) | $(108) | | Increase (Decrease) in Cash and Cash Equivalents | $45 | $(63) | - Net cash from operating activities increased by **$106 million** to **$207 million**, primarily driven by reductions in working capital. Net cash used in investing activities decreased by **$5 million** to **$51 million** due to decreased capital expenditures. Net cash used in financing activities remained relatively flat[132](index=132&type=chunk)[133](index=133&type=chunk)[134](index=134&type=chunk) [External Debt Facilities](index=33&type=section&id=External%20Debt%20Facilities) This section details the company's Term Loan and Revolving Credit Facilities, including interest rates, maturities, and covenants - The company's External Debt Facilities, including a **$2,475 million Term Loan Facility** and a **$250 million Revolving Facility**, were amended in February 2023 to transition from LIBOR to SOFR. As of June 30, 2023, the Term Loan Facility had an outstanding balance of **$2,095 million**, and the Revolving Facility had no outstanding borrowings but **$6 million** in letters of credit[135](index=135&type=chunk)[136](index=136&type=chunk) - Borrowings bear interest at a base rate plus **0.75%** or SOFR plus **1.75%**. Interest rate swaps hedge **$1,150 million** of the Term Loan Facility, fixing SOFR at **0.40% to 3.40%**. The Term Loan Facility matures in February 2027 with quarterly **$6 million** amortizations, and the Revolving Facility matures in February 2025[138](index=138&type=chunk)[139](index=139&type=chunk)[142](index=142&type=chunk) - Subsequent to June 30, 2023, a voluntary principal payment of **$100 million** was made on the Term Loan Facility. The facilities contain customary mandatory prepayments and covenants, with the company currently in compliance[141](index=141&type=chunk)[146](index=146&type=chunk)[148](index=148&type=chunk) [Accounts Receivable Factoring](index=35&type=section&id=Accounts%20Receivable%20Factoring) This section describes the company's accounts receivable factoring agreement and its impact on cash flow - The company has an accounts receivable factoring agreement with JP Morgan Chase Bank, N.A., allowing the sale of certain receivables up to **$190 million**. As of June 30, 2023, there was no outstanding balance under this arrangement. Transactions are accounted for as sales, with proceeds classified as operating cash flow[149](index=149&type=chunk) [Supply Chain Financing](index=35&type=section&id=Supply%20Chain%20Financing) This section explains the voluntary Supply Chain Finance program and its non-material impact on financial statements - A voluntary Supply Chain Finance (SCF) program was initiated in March 2023, enabling qualifying suppliers to sell receivables to a financial institution. The company is not a party to these agreements, and its payment terms and financial statements are not directly impacted. Obligations outstanding under SCF were not material as of June 30, 2023[150](index=150&type=chunk)[151](index=151&type=chunk)[152](index=152&type=chunk) [Dividends](index=35&type=section&id=Dividends) This section reports on cash dividends declared and paid, and the Board of Directors' discretion for future payments - Cash dividends of **$0.23** and **$0.46 per share** were declared and paid during the three and six months ended June 30, 2023, respectively. A quarterly cash dividend of **$0.23 per share** was approved on July 27, 2023, for payment on August 31, 2023. Future dividends are at the discretion of the Board of Directors[153](index=153&type=chunk) [Critical Accounting Policies and Estimates](index=35&type=section&id=Critical%20Accounting%20Policies%20and%20Estimates) This section highlights critical accounting policies and estimates that materially impact financial statements - Critical accounting policies and estimates involve subjective judgments and assumptions that materially impact financial statements. For a detailed description, refer to the Annual Report on Form 10-K for the fiscal year ended December 31, 2022[155](index=155&type=chunk)[156](index=156&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=36&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section refers to the company's Annual Report on Form 10-K for detailed disclosures on market risk. It states that there have been no material changes in the company's exposure to market risk during the six months ended June 30, 2023 - No material changes in market risk exposure occurred during the six months ended June 30, 2023, as referenced from the Annual Report on Form 10-K for December 31, 2022[158](index=158&type=chunk) [Item 4. Controls and Procedures](index=36&type=section&id=Item%204.%20Controls%20and%20Procedures) This section details the evaluation of the company's disclosure controls and procedures and reports on changes in internal control over financial reporting. As of June 30, 2023, management, including the CEO and CFO, concluded that disclosure controls and procedures were effective, and no material changes to internal control over financial reporting occurred during the quarter - As of June 30, 2023, the Chief Executive Officer and Chief Financial Officer concluded that the company's disclosure controls and procedures were effective[161](index=161&type=chunk) - There were no changes in internal control over financial reporting during the quarter ended June 30, 2023, that materially affected, or are reasonably likely to materially affect, the company's internal control over financial reporting[161](index=161&type=chunk) PART II. OTHER INFORMATION This section covers legal proceedings, risk factors, equity sales, defaults, mine safety, other information, and exhibits [Item 1. Legal Proceedings](index=37&type=section&id=Item%201.%20Legal%20Proceedings) This section incorporates by reference the information regarding legal proceedings from Note 7 – Commitments and Contingencies in the condensed consolidated financial statements - Information on legal proceedings is incorporated by reference from Note 7 – Commitments and Contingencies in the condensed consolidated financial statements[164](index=164&type=chunk) [Item 1A. Risk Factors](index=37&type=section&id=Item%201A.%20Risk%20Factors) This section states that there have been no material changes to the risk factors previously disclosed in the company's Annual Report on Form 10-K for the year ended December 31, 2022 - No material changes have occurred from the risk factors disclosed in the Annual Report on Form 10-K for the year ended December 31, 2022[166](index=166&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=38&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section indicates that there were no unregistered sales of equity securities or use of proceeds to report for the period - There were no unregistered sales of equity securities or use of proceeds to report[169](index=169&type=chunk) [Item 3. Defaults Upon Senior Securities](index=38&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) This section states that there were no defaults upon senior securities to report for the period - There were no defaults upon senior securities to report[171](index=171&type=chunk) [Item 4. Mine Safety Disclosures](index=38&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This section indicates that mine safety disclosures are not applicable to the company - Mine safety disclosures are not applicable to the registrant[173](index=173&type=chunk) [Item 5. Other Information](index=38&type=section&id=Item%205.%20Other%20Information) This section reports that no directors or officers adopted or terminated any Rule 10b5-1 trading arrangements or non-Rule 10b5-1 trading arrangements during the three months ended June 30, 2023 - No directors or officers adopted or terminated any Rule 10b5-1 trading arrangements or non-Rule 10b5-1 trading arrangements during the three months ended June 30, 2023[175](index=175&type=chunk) [Item 6. Exhibits](index=39&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed as part of the Quarterly Report on Form 10-Q, including organizational documents, certifications of principal executive and financial officers, and Inline XBRL documents - Exhibits include Amended and Restated Certificate of Incorporation, Amended and Restated By-Laws, Certifications of Principal Executive Officer and Principal Financial Officer (pursuant to Sections 302 and 906 of Sarbanes-Oxley Act), and various Inline XBRL documents[178](index=178&type=chunk) [Signatures](index=40&type=section&id=Signatures) This section contains the required signatures for the Quarterly Report on Form 10-Q, confirming its submission on behalf of Reynolds Consumer Products Inc. by its Principal Accounting Officer - The report is signed by Chris Mayrhofer, Senior Vice President and Controller (Principal Accounting Officer) of Reynolds Consumer Products Inc., on August 9, 2023[181](index=181&type=chunk)

Financial Data and Key Metrics Changes - For Q1 2023, net revenues increased by 3% compared to the prior year, driven by price increases that offset a 2% volume decline [16] - Adjusted EBITDA for Q1 2023 is expected to be in the range of $135 million to $145 million, up from $118 million in the prior year [1] - For the full year 2023, net revenues are expected to be flat, plus or minus 1%, with adjusted EBITDA projected between $605 million and $635 million [3] Business Line Data and Key Metrics Changes - Reynolds Cooking & Baking segment is stabilizing with operational improvements, but still faces headwinds from higher material costs [19] - Hefty Waste & Storage and Hefty Tableware segments are operating at restored levels of profitability, with Hefty Waste Bags gaining market share [56][117] - Foil consumption is up 3% compared to pre-pandemic levels, and Hefty is gaining share across all generational groups, especially millennials [8][16] Market Data and Key Metrics Changes - Higher-income consumers are purchasing larger sizes, while lower-income households are opting for smaller sizes due to price sensitivity [25] - Disposable dish consumption is slightly above pre-pandemic levels, with Hefty dishes gaining share [26] - The competitive environment is described as rational, with some increases in promotional activities across categories [28] Company Strategy and Development Direction - The company is focused on returning Reynolds Cooking & Baking to historical profitability levels through operational efficiencies and cost management [55][58] - Investment in innovation and advertising is expected to drive growth, with plans to increase trade investment and promotional activities [60][61] - The company is developing a long-term strategic plan, with an Investor Day expected to provide more details later in the year [97][107] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving earnings growth for 2023, supported by a recovery plan for Reynolds Cooking & Baking [14][58] - The company is monitoring consumer behavior closely due to inflationary pressures and is prepared to adjust pricing strategies as necessary [62][119] - Management anticipates that the recovery plan is on track and expects to see improvements in margins and profitability in the second half of 2023 [19][90] Other Important Information - The search for a new CFO is progressing well, with an announcement expected before the fourth quarter results [4][11] - Cash conversion has improved compared to the previous year, and the company plans to remain disciplined in capital spending [10][127] Q&A Session Summary Question: What drove the higher unallocated costs in the quarter? - Higher professional fees were part of the costs, which were expected and included in the overall guidance [125] Question: How is the competitive environment affecting pricing and promotions? - The competitive environment is rational, with some increases in promotional activities, but the company has planned for this [28] Question: What are the expectations for volume growth during normal times? - The company expects low single-digit volume growth across most categories during normal conditions [109] Question: How is the company addressing consumer behavior changes? - The company is monitoring consumer behavior closely and adjusting pricing strategies as necessary to maintain market share [62][119]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 _______________________________________________________________________________________ _______________________________________________________________________________________ FORM 10-Q (Mark One) x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2023 OR o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 19 ...