Reynolds Consumer Products Inc. Provides Earnings Guidance for the Third Quarter Ending September 30, 2021 and Fiscal Year Ending December 31, 2021
August 02, 2021 at 04:05 pm EDT
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Reynolds Consumer Products Inc. provided earnings guidance for the third quarter ending September 30, 2021 and fiscal year ending December 31, 2021. For the quarter, the company expects net revenues to grow high single digits on $823 million in the prior year, reflecting recently implemented price increases and volume anticipated to be similar to third quarter of 2020 levels. Net income to be in the range of $59 million to $66 million. Earnings per share to be in the range of $0.28 to $0.31. Despite the expected revenue growth over the prior-year quarter, the company expects short-term earnings pressure in the third quarter, primarily driven by increases in resin and aluminum costs in excess of price increases going into effect during the third quarter.
For the full year, the company expects net revenues to grow high single digits on $3,263 million in the prior year, underpinned by pricing, at-home consumption, improvements in Tableware segment as a result of increases in social gatherings, innovation, and retail replenishment. Net income to be in the range of $311 million to $332 million. Earnings per share to be in the range of $1.48 to $1.58.
Reynolds Consumer Products Inc. is a consumer products company. The Company produces and sells products across three categories: cooking products, waste and storage products and tableware. The Company offers its products under various brands, such as Reynolds and Hefty. It operates through four segments: Reynolds Cooking & Baking, Hefty Waste & Storage, Hefty Tableware and Presto Products. Reynolds Cooking & Baking segment sells both branded and store brand aluminum foil, disposable aluminum pans, parchment paper, freezer paper, wax paper, butcher paper, plastic wrap, baking cups, oven bags and slow cooker liners. Hefty Waste & Storage segment produces both branded and store brand trash and food storage bags. Hefty Tableware segment sells both branded and store brand disposable and compostable plates, bowls, platters, cups and cutlery. Presto Products segment sells store brand products in four main categories: food storage bags, trash bags, reusable storage containers and plastic wrap.