Q2 2024 Reynolds Consumer Products Inc Earnings Call Transcript
Key Points
- Reynolds Consumer Products Inc (REYN) reported its best second-quarter earnings in its history as a public company, excluding the pandemic-fueled second quarter of 2020.
- Second-quarter retail revenues increased by 1% to $892 million, exceeding expectations.
- The company continues to drive product innovation, particularly in household essentials and sustainable solutions.
- Reynolds Wrap gained additional market share in the household foil category, and Reynolds Kitchen Parchment continues to grow.
- The company identified and unlocked additional cost savings through its Reyvolution initiative, contributing to earnings growth.
- Consolidated revenues declined by 1%, reflecting a decrease in low-margin non-retail revenue.
- Higher incentive compensation costs and a modest increase in advertising partially offset the gains from manufacturing volume output and lower operational costs.
- The disposable tableware segment continues to be under pressure, despite sequential improvements.
- The company expects a modest increase in commodity costs through the balance of the year.
- There is a $10 million cost headwind anticipated in the fourth quarter due to higher aluminum prices and premiums paid for cooking bags.
(audio in progress) At this time, all participants are in a listen only. (Operator Instructions) As a reminder, this conference is being recorded.
It is now my pleasure to introduce your host, Mark Swartzberg, Vice President of Investor Relations. Thank you, sir. You may begin.
Thank you, operator. Good morning and thank you for joining us for Reynolds Consumer Products second-quarter earnings conference call. Please note that this call is being webcast on the Investor Relations section of our corporate website at reynoldsconsumerproducts.com. Our earnings press release and presentation slides are also available. With me on the call today are Lance Mitchell, our President and Chief Executive Officer; and Scott Huckins, our Chief Financial Officer. Following prepared remarks, we will open the call for a question-and-answer session.
Before we begin, I would like to remind you that this morning's discussion will contain forward-looking statements which are
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