Financial Data and Key Metrics Changes - The company is focused on consistent organic volume growth and margin expansion as primary business aspirations [3][4] - The outlook for revenue growth is maintained at low single digits, with a shift from volume to pricing recovery due to cost headwinds [14][36] Business Line Data and Key Metrics Changes - The company operates through four segments: Reynolds Cooking and Baking, Hefty Waste and Storage, Hefty Tableware, and Presto products, with long-term growth expectations in low single digits [10][11] - The foam category is experiencing double-digit declines, impacting overall category growth, while other categories are expected to remain flat [13] Market Data and Key Metrics Changes - The U.S. consumer is under pressure due to declining consumer confidence and high levels of debt, affecting spending behavior [34] - There is a trend towards larger pack sizes and lower opening price points across most categories [35] Company Strategy and Development Direction - The company emphasizes innovation and marketing to drive category growth, focusing on evolving consumer needs and sustainability [15][54] - The dual strategy of being both a branded and private label producer allows the company to serve different consumer segments and manage categories effectively [30][31] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the current operating environment's challenges, including commodity volatility and tariffs, but expresses confidence in the team's ability to adapt [7][42] - The company is committed to investing in high-return opportunities and improving earnings stability through automation and other initiatives [63][64] Other Important Information - The company has made significant progress in sustainability, offering alternatives in all major categories by 2025 [53] - The company has a strong balance sheet and cash flow, enabling future investments in growth initiatives [5] Q&A Session Summary Question: Overview of categories and long-term growth expectations - The company operates in four segments with long-term growth expected in low single digits, driven by household formation and innovation [10][11] Question: Current consumer environment and category performance - The consumer is under pressure, with a stable share between branded and private label products, and a shift towards larger pack sizes [34][35] Question: Input costs and pricing power - Aluminum prices have increased, prompting the company to implement price increases, demonstrating pricing power and brand strength [36] Question: Benefits of being both a branded and private label producer - The dual strategy allows for consumer segmentation and supply chain synergies, contributing to overall profitability [30][31] Question: Capital allocation and M&A strategy - The company is focused on organic growth and has made progress in extending its brand into adjacent areas, with no direct M&A activity since the last investor meeting [55][56]

Financial Data and Key Metrics Changes - The company is focused on consistent organic volume growth and margin expansion as primary business aspirations [3][4] - The outlook for category growth this year was initially expected to decline in low single digits, but the company has outperformed the categories slightly [13][14] - Aluminum prices have increased from approximately $1.2 per pound to $1.9, prompting the company to implement a third price increase in the Reynolds Cooking and Baking business [40] Business Line Data and Key Metrics Changes - The company operates through four segments: Reynolds Cooking and Baking, Hefty Waste and Storage, Hefty Tableware, and Presto products [9][10][11] - The foam category is experiencing double-digit declines, impacting overall category expectations, while other categories are expected to remain flat [13] - The Hefty brand enjoys a 98% level of consumer awareness and has been a serial innovator, contributing to long-term share gains in the trash category [28] Market Data and Key Metrics Changes - The U.S. consumer is under pressure due to declining consumer confidence and rising debt levels, impacting overall market dynamics [38] - There is a trend towards larger pack sizes and lower opening price points across most categories [39] - The company has a U.S.-centric business model, with 90% of revenues coming from the U.S., which insulates it from tariff impacts compared to competitors relying on international supply chains [50][51] Company Strategy and Development Direction - The company aims to build a world-class team and elevate the finance team to become business partners driving results [5][6] - Innovation and marketing are critical for driving category growth, with a focus on aligning products with evolving consumer needs [15][16] - The company sees the brand and store brand business as complementary, allowing for better consumer segmentation and price point management [34] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the current operating environment is challenging, with commodity volatility and consumer pressure being significant factors [7][38] - The company is optimistic about its ability to manage costs and drive earnings stability through a more agile team [7][8] - Future capital allocation will focus on high-return opportunities, including automation and innovation [68][69] Other Important Information - The company has made significant progress in offering sustainable alternatives across all major categories, addressing consumer demand for sustainability [58] - The company has not pursued M&A since its last investor day but has focused on organic growth and brand extension into adjacent areas [60][61] Q&A Session Summary Question: What are the long-term growth drivers for the trash category? - The Hefty brand's strong consumer awareness, innovation, and effective marketing have driven long-term share gains in the trash category [27][29] Question: How does the company view the competitive dynamics in the market? - The competitive landscape is rational, with promotional activities resembling pre-pandemic levels, and the company is focused on maintaining its brand strength [19][31] Question: What is the company's approach to managing input costs and tariffs? - The company has seen a decrease in direct tariff exposure and is focusing on onshoring production to mitigate costs [46][50]

Financial Data and Key Metrics Changes - In Q2 2025, net revenues were $938 million, an increase from $930 million in the same period last year [18] - Adjusted EBITDA for Q2 was $100 million, compared to $172 million in the prior year [20] - Adjusted earnings per share (EPS) was $0.39, down from $0.41 in the previous year [20] - The company expects net revenues to decline low single digits compared to 2024, with adjusted EBITDA projected between $650 million and $670 million for the year [21][22] Business Line Data and Key Metrics Changes - Retail revenue was flat at $887 million, with modest volume growth excluding a headwind from foam products [18][19] - Non-retail revenues increased to $51 million [18] - The company gained market share in hefty waste bags, private label food bags, and hefty party cups [6][7] Market Data and Key Metrics Changes - U.S. consumer confidence decreased by 15 points in 2025, impacting consumer behavior [8] - Approximately 15% of U.S. households utilize SNAP benefits, which are being reduced, affecting affordability and value perception [9] Company Strategy and Development Direction - The company is focusing on product innovation, including Hefty Fabuloso scented waste bags and Reynolds Kitchens air fryer cups, to drive volume and share gains [6][7] - Strategic initiatives are in place to enhance revenue growth management and supply chain efficiency, including onshoring production [14][15] - The company is investing in automation and high-return projects to support growth and margin expansion beyond 2025 [23] Management's Comments on Operating Environment and Future Outlook - Management acknowledged a challenging operating environment but expressed confidence in executing pricing strategies to offset input cost increases [16][18] - The company is adapting to shifts in consumer behavior, including increased online shopping and demand for affordable products [10][52] - Management reiterated confidence in 2025 earnings expectations and the potential for long-term growth [24] Other Important Information - The company is adding key members to its team to enhance commercial and operational performance [15] - The gross profit decline is attributed to the timing of pricing actions relative to input cost increases, with expectations for recovery in the latter half of the year [20][40] Q&A Session Summary Question: Investment areas and capital deployment - Management highlighted automation capital pipeline and onshoring manufacturing as new investment opportunities [27] Question: Innovation and branding - Continued investment in Hefty scented waste bags and sustainable product offerings like Hefty EcoSafe cutlery was emphasized [28][29] Question: Gross margin and pricing strategy - Management discussed cost headwinds and pricing recovery, expecting a balance in the latter half of the year [34][36] Question: Consumer purchase patterns and pricing execution - Management noted stable promotional levels and consumer behavior, with confidence in executing price increases [48][52] Question: Retail inventory destocking impact - Management indicated that destocking had a neutral impact in Q2, with no significant changes observed [60][66] Question: Promotional environment in trash category - Management clarified that promotional levels remained consistent year-over-year, attributing share gains to distribution and innovation [70][72]