Reynolds Consumer Products(US:REYN)2025-10-29 13:15Financial Performance - Total net revenues increased by 2% to $931 million for the three months ended September 30, 2025, compared to $910 million in the same period in 2024[88]. - Net income decreased by 8% to $79 million for the three months ended September 30, 2025, down from $86 million in the same period in 2024[89]. - Adjusted EBITDA for the three months ended September 30, 2025, was $168 million, compared to $171 million in the same period in 2024[96]. - Net income for the nine months ended September 30, 2025, decreased by 20% to $184 million, down from $231 million in the same period in 2024[90]. - Adjusted diluted EPS for the three months ended September 30, 2025, was $0.42, compared to $0.41 in the same period in 2024[97]. - Total net revenues for the three months ended September 30, 2025, increased by $21 million, or 2%, to $931 million, primarily driven by higher pricing related to input costs[107]. - Gross profit for the three months ended September 30, 2025, decreased by $6 million, or 3%, to $233 million, with a gross margin of 25%[106]. - Adjusted EBITDA for the three months ended September 30, 2025, decreased by $3 million, or 2%, to $168 million, impacted by lower volume[112]. - For the nine months ended September 30, 2025, total net revenues increased by $12 million, or less than 1%, to $2,687 million[131]. - Total net revenues increased by $12 million, or 0.5%, to $2,687 million, primarily driven by higher pricing related to input costs[132]. - Adjusted EBITDA decreased by $18 million, or 4%, to $447 million, mainly due to lower retail volume and higher material costs[138]. - Cost of sales increased by $62 million, or 3%, to $2,039 million, driven by higher input and manufacturing costs[133]. Segment Performance - The Reynolds Cooking & Baking segment generated $308 million in net revenues for the three months ended September 30, 2025, up from $294 million in 2024[102]. - The Hefty Waste & Storage segment reported net revenues of $266 million for the three months ended September 30, 2025, compared to $253 million in 2024[102]. - The Hefty Tableware segment achieved net revenues of $200 million for the three months ended September 30, 2025, an increase from $222 million in 2024[102]. - Hefty Waste & Storage segment net revenues increased by $13 million, or 5%, to $266 million, attributed to higher volume[116]. - Hefty Tableware segment net revenues decreased by $22 million, or 10%, to $200 million, primarily due to lower foam volume[118]. - Presto Products segment net revenues increased by $13 million, or 9%, to $163 million, driven by higher volume[121]. - Reynolds Cooking & Baking segment net revenues increased by $21 million, or 2%, to $862 million, with retail revenues down by $18 million[140]. - Hefty Waste & Storage segment net revenues increased by $29 million, or 4%, to $761 million, primarily driven by increased volume[142]. - Hefty Tableware segment net revenues decreased by $59 million, or 9%, to $622 million, attributed to lower foam volume[144]. - Presto Products segment net revenues increased by $16 million, or 4%, to $460 million, driven by higher volume[146]. Cash Flow and Dividends - Net cash provided by operating activities decreased by $67 million to $240 million, primarily due to lower net income[151]. - Cash dividends declared during the three and nine months ended September 30, 2025, were $0.23 and $0.69 per share, respectively[171]. - The company expects to continue paying cash dividends quarterly, subject to the discretion of the Board of Directors and dependent on various financial factors[171]. - 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[173]. Debt and Obligations - As of September 30, 2025, the outstanding balance under the Term Loan Facility was $1,636 million, with no borrowings under the Revolving Facility[155]. - As of September 30, 2025, the amount of obligations outstanding under the Supply Chain Finance program was $10 million, down from $12 million as of December 31, 2024[170]. - Interest expense, net decreased by $4 million, or 16%, to $21 million, due to a lower outstanding principal balance[109]. - Interest expense, net decreased by $13 million, or 17%, to $63 million due to lower outstanding principal balance[135]. Market Position and Sustainability - The company holds the 1 market position in the U.S. consumer foil market with Reynolds Wrap, capturing over 50% market share in most categories[85]. - The company is focused on sustainable solutions, including products made from recycled materials and compostable options across its segments[86]. - There have been no material changes in the company's exposure to market risk during the nine months ended September 30, 2025[178].