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Reynolds Consumer Products(REYN) - 2024 Q4 - Annual Results
REYNReynolds Consumer Products(REYN)2025-02-05 11:59

Financial Performance - Net income increased by 18% to 352millionforthefiscalyear2024,drivenbyimprovedmarginsandlowerinterestexpenses[4]−AdjustedEBITDAforthefiscalyear2024roseto352 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 636millionin2023,despitelowernetrevenues[6]−Netincomefor2024was636 million in 2023, despite lower net revenues [6] - Net income for 2024 was 352 million, up from 298millionin2023,reflectingayear−over−yearincreaseof17.9298 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 636millionin2023,anincreaseof6.6636 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 3,756millionin2023,adecreaseof1.63,756 million in 2023, a decrease of 1.6% [37] Retail Performance - Retail net revenues decreased to 3,518 million in 2024 from 3,559millionin2023,reflectinga13,559 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 489millionin2024from489 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 346millionin2024from346 million in 2024 from 457 million in 2023, a reduction of 24.2% [35] - Free cash flow decreased to 369millionin2024from369 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 1,549million,downfrom1,549 million, down from 1,717 million in 2023, a decrease of 9.8% [49] Capital Expenditures - Capital expenditures increased to 120millionin2024from120 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 120millionin2024comparedto120 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 3,695million,withadjustedEBITDAprojectedbetween3,695 million, with adjusted EBITDA projected between 670 million and 690million[20]−Thecompanyanticipatescontinuedfocusonmarketexpansionandproductinnovationinfiscalyear2025,althoughspecificfinancialguidancewasnotprovided[44]Dividend−Thecompanydeclaredaquarterlydividendof690 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 4,873millionin2024from4,873 million in 2024 from 4,780 million in 2023, representing a growth of 1.95% [33] - Total liabilities decreased to 2,731millionin2024from2,731 million in 2024 from 2,797 million in 2023, a reduction of 2.4% [33]