Reynolds Consumer Products(US:REYN)2022-05-10 13:16Revenue Performance - Total net revenues increased by $88 million, or 12%, to $845 million for the three months ended March 31, 2022, primarily driven by a 14% increase in pricing due to higher material costs, partially offset by a 2% decrease in volume [76][91]. - The Reynolds Cooking & Baking segment generated net revenues of $268 million, while the Hefty Waste & Storage segment generated $228 million, and the Hefty Tableware segment generated $210 million for the three months ended March 31, 2022 [88]. - Hefty Tableware total segment net revenues increased by $40 million, or 24%, to $210 million, primarily due to higher pricing and volume [102]. - Hefty Waste & Storage total segment net revenues increased by $34 million, or 18%, to $228 million, primarily due to higher pricing and volume [100]. - Presto Products total segment net revenues increased by $15 million, or 12%, to $141 million, driven by pricing actions and improved portfolio mix [104]. - Reynolds Cooking & Baking total segment net revenues decreased by $4 million, or 1%, to $268 million, primarily due to lower consumption and reroll sales [97]. Cost and Expenses - Cost of sales increased by $112 million, or 20%, to $677 million, driven by a $105 million increase in material costs and higher labor and logistics costs [92]. - Adjusted EBITDA decreased by $28 million, or 20%, to $112 million, primarily due to increased material, manufacturing, logistics, and advertising costs, along with lower volume [95]. - Selling, general and administrative expenses increased by $5 million, or 6%, to $83 million, primarily due to higher advertising expenses [92]. - Adjusted EBITDA for Reynolds Cooking & Baking decreased by $25 million, or 47%, to $28 million, driven by lower volume and pricing actions lagging material cost increases [98]. - Adjusted EBITDA for Hefty Tableware decreased by $11 million, or 32%, to $23 million, primarily due to pricing actions lagging costs [103]. - Adjusted EBITDA for Hefty Waste & Storage increased by $1 million, or 2%, to $45 million, driven by higher volume and price increases [101]. Net Income and Cash Flow - Net income for the three months ended March 31, 2022, was $52 million, a decrease of $22 million, or 30%, compared to $74 million in the same period of 2021 [90]. - Net cash provided by operating activities increased by $10 million to $19 million, primarily due to lower net cash outlays [109]. - Net cash used in investing activities increased by $5 million to $28 million, driven by increased acquisition of property, plant, and equipment [110]. Tax and Market Position - The effective tax rate for the three months ended March 31, 2022, was 24.3%, compared to 25.0% for the same period in 2021 [94]. - The company holds the 1 market position in the U.S. consumer foil market with over 50% market share in virtually all categories [74]. COVID-19 Impact - The company does not anticipate that the COVID-19 pandemic will materially impact its liquidity over the next 12 months [79].