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 [17] - Retail revenue was flat at $887 million compared to 2024, with modest retail volume growth excluding foam products [17] - Adjusted EBITDA for Q2 was $100 million, compared to $172 million in the prior year [18] - Adjusted earnings per share (EPS) was $0.39, down from $0.41 in the previous year [18] - 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 [19][20] Business Line Data and Key Metrics Changes - The company gained market share in categories such as Hefty waste bags and private label food bags [6][17] - Product innovation contributed significantly to volume and share gains, with new products like Hefty Fabuloso scented waste bags and Reynolds Kitchens air fryer cups driving growth [7][10] Market Data and Key Metrics Changes - U.S. consumer confidence has decreased by 15 points in 2025, impacting consumer behavior [8] - Approximately 15% of U.S. households utilize SNAP benefits, which are being reduced, influencing purchasing decisions [9] Company Strategy and Development Direction - The company is focused on long-term growth and structural margin expansion, emphasizing product innovation and affordability [7][16] - Strategic initiatives include enhancing revenue growth management and onshoring production for smaller product categories [14][15] - The company is investing in automation and high-return projects to support growth and margin expansion beyond 2025 [21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in executing pricing strategies to offset higher input costs, despite a challenging operating environment [16][19] - The outlook for 2025 remains positive, with expectations for continued retail volume performance and disciplined cost management [20][22] Other Important Information - The company is adapting to shifts in shopping behavior, with strong performance in online sales [11] - New leadership appointments are expected to enhance commercial and operational performance [15] Q&A Session Summary Question: Investment areas and capital deployment - The company is prioritizing automation capital investments and onshoring manufacturing for smaller product categories [25] Question: Innovation and branding - Continued investment in Hefty scented waste bags and sustainable product offerings like Hefty EcoSafe cutlery is a focus [27] Question: Gross margin and pricing strategy - The company anticipates 2 to 4 points of cost headwinds and corresponding pricing recovery throughout the year [34][42] Question: Consumer purchase patterns and pricing execution - The company has successfully executed price increases and observed stable promotional levels compared to the previous year [48][50] Question: Retail inventory destocking impact - There was no significant impact from destocking in Q2, with a neutral effect on the company overall [60][66] Question: Promotional environment in trash category - The promotional environment remained stable, with share gains attributed to distribution investments and innovation [70] Question: Tariff headwinds - The company continues to face a 2 to 4 point headwind from tariffs, with aluminum costs being a significant factor [73]

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]