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- **Topline Growth**: Q3 revenue $931M (+2% YoY), driven by 7% Reynolds Wrap sales and 9% Hefty waste bag gains.
- **Cost Management**: $29M SG&A savings year-to-date, targeting $30-40M annualized cost reductions.
- **Profitability**: Adjusted EPS $0.42 (+2.4% YoY), Q4 EPS guidance $0.56-0.60.
- **Risk Mitigation**: U.S.-centric supply chain offsets tariffs, but cautious on store brand supplier shifts.
- **Innovation Momentum**: Reynolds Wrap Fun Foil e-commerce expansion, Hefty Fabuloso Watermelon ACV >50% in <1 year.

**【CEO Summary Section】**
- **Revenue Growth and Market Share**: Q3 net revenues of $931 million (+2% YoY), driven by share gains in key categories like Reynolds Wrap (+7% retail sales), Hefty waste bags (+9% year-to-date), and store brand food bags (100% of category growth). Pricing actions offset 2-4% cost/tariff headwinds.
- **Operational Efficiency**: Reduced SG&A by $29M year-to-date, with focus on lean manufacturing and automation. New COO Scott Vail leading $30-40M annualized cost savings initiatives.
- **Innovation Highlights**: Reynolds Wrap Fun Foil expanding e-commerce, Hefty Fabuloso Watermelon ACV >50% in <1 year, and Reynolds Kitchen Air Fryer cups gaining e-commerce traction.
- **Risk Management**: U.S.-centric supply chain mitigates tariff risks, but cautious on retailers shifting store brand business to lower-cost suppliers.

**【CFO Financial Commentary】**
- **Profitability**: Adjusted EBITDA $168M (flat YoY), adjusted EPS $0.42 (+2.4% YoY). Q4 guidance: EBITDA $208-218M, EPS $0.56-0.60.
- **Cost Control**: Gross profit down $6M vs. prior quarter, but improving alignment of pricing/commodity costs. Capital spending +$30-40M for growth projects.
- **Liquidity**: $50M voluntary term loan repayment, leverage ratio 2.0-2.5x EBITDA.

**【Q&A Key Highlights】**
- **Holiday Season**: Promotional intensity similar to pre-pandemic levels, with focus on value-oriented consumers. Tableware foam sales down 80% YoY due to California ban, but EBITDA +10% vs. prior quarter.
- **Consumer Trends**: Middle-income stress driving store brand shifts, but brand loyalty remains strong in higher-income segments. Hefty waste bags outperforming category by 10pts despite promo intensity.
- **Gross Margin Outlook**: 2-4% pricing headwinds expected to fully offset costs in 2025, with gradual margin improvement as pricing flows through.
- **Long-Term Strategy**: Accelerating onshoring of production, reducing non-manufactured business from 15% to <10% by 2026.

Reynolds Consumer Products Inc. (REYN) Q3 2025 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

REYN

REYN fundamentals

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