Reynolds Consumer Products(US:REYN)2025-04-30 13:15Financial Performance - Total net revenues decreased by 2% to $818 million for the three months ended March 31, 2025, compared to $833 million in the same period in 2024[95]. - Net income decreased by 37% to $31 million for the three months ended March 31, 2025, down from $49 million in the same period in 2024[80]. - Adjusted EBITDA for the three months ended March 31, 2025, was $117 million, a decrease of 4% from $122 million in the same period in 2024[95]. - Total net revenues decreased by $15 million, or 2%, to $818 million, primarily driven by lower volume, partially offset by higher pricing[97]. - Adjusted EBITDA decreased by $5 million, or 4%, to $117 million, due to lower revenue and higher material, manufacturing, and logistics costs[102]. Segment Performance - The Reynolds Cooking & Baking segment generated $259 million in net revenues, while the Hefty Waste & Storage segment generated $240 million[93]. - Reynolds Cooking & Baking segment net revenues increased by $3 million, or 1%, to $259 million, driven by higher non-retail volume and pricing[104]. - Hefty Waste & Storage segment net revenues increased by $6 million, or 3%, to $240 million, primarily due to higher volume[107]. - Hefty Tableware segment net revenues decreased by $29 million, or 14%, to $179 million, due to lower foam product volume[109]. Expenses and Cash Flow - Cost of sales remained relatively stable at $629 million for the three months ended March 31, 2025, compared to $632 million in the same period in 2024[95]. - Selling, general and administrative expenses decreased by 6% to $104 million for the three months ended March 31, 2025, compared to $111 million in the same period in 2024[95]. - Interest expense decreased by 16% to $21 million for the three months ended March 31, 2025, down from $25 million in the same period in 2024[95]. - Net cash provided by operating activities decreased by $43 million to $56 million, driven by reduced working capital benefits and lower net income[116]. - Net cash used in investing activities increased by $10 million to $39 million, attributed to higher capital expenditures[117]. - Net cash used in financing activities increased by $46 million to $96 million, primarily due to $50 million of voluntary principal payments on the Term Loan Facility[118]. Debt and Liquidity - As of March 31, 2025, the outstanding balance under the Term Loan Facility was $1,645 million, with no outstanding borrowings under the Revolving Facility[120]. - Cash dividends of $0.23 per share were declared and paid during the three months ended March 31, 2025, with expectations to continue quarterly payments[135]. - The company believes its projected cash position and cash flows from operations are sufficient to meet debt service, capital expenditures, and working capital needs for the foreseeable future[137]. - The company cannot ensure that its business will generate sufficient cash flow from operations or that future borrowings will be available in amounts sufficient to pay indebtedness or fund other liquidity needs[137]. Market and Strategic Considerations - The company holds the 1 market position in the U.S. consumer foil market with Reynolds Wrap, maintaining over 50% market share in most categories[76]. - There are no material changes in the company's exposure to market risk during the three months ended March 31, 2025[141]. - Critical accounting policies and estimates have a material impact on the presentation of the company's financial statements[139]. - The company may incur additional indebtedness and guarantee indebtedness as part of its financial strategy[136]. - The company is subject to various restrictions on its ability to engage in mergers, sell assets, or make investments[136]. - Future performance will depend on numerous factors, many of which are beyond the company's control[137]. - The company has not provided specific guidance on new product development or market expansion strategies in the provided content[136][137][139][141]. - The company has not reported any recent mergers or acquisitions in the provided content[136][137][139][141].