Reynolds Consumer Products Inc. Q4 FY2025 earnings call

• 2025 was a transition year with strategic priorities in growth, innovation, productivity, and cost savings. Innovation engine delivered with new products like hefty waste bags with scents, parchment cooking bags, etc. - Advanced revenue growth management by migrating trade dollars to higher return programs. - Manufacturing and operating performance improved in H2 2025 with productivity initiatives. - In 2026, plan to realign category organization, continue innovation, manage raw material costs (e.g., aluminum price increases), and address competitive dynamics in waste and food bag categories.

In the fourth quarter, net revenues were $1.03 billion, up 1% from $1.02 billion in 2024. Retail volumes outperformed overall category trends by two points. The hefty waste and storage and Presto segments each had strong volume growth and share gains. Hefty Tableware saw a slight sequential volume improvement but was weighed down by foam and the discretionary nature of the category. For the full year 2025, net revenues were $3.7 billion, up 1% year-over-year. Adjusted EBITDA was $670 million compared to $678 million in 2024. The slight decline in retail revenues was offset by strong growth in non-retail revenues.

• 2026 net revenues expected to be -3% to +1% compared to 2025's $3.7 billion. Retail branded sales expected at or above category performance down 2%. Non-retail revenue flat. - Adjusted EBITDA expected in range of $660 million to $675 million. - Q1 2026 net revenues expected down 3% to +1% compared to Q1 2025's $818 million. Adjusted EBITDA Q1 2026 expected $120 million to $125 million.

• Raw material costs, particularly aluminum continuing to rise. - Intensified competitive dynamics in waste and food bag categories with increased promotional and pricing activity. - Near-term volume headwinds due to competitive pressure. - Private label business trends with dual sourcing creating near-term pressure.

Q: Kaumil Gajrawala inquired about the restructuring with Presto and Hefty.

A: Scott Huckins stated it's about clarity and focus for end-to-end management and growth, with no major personnel movement.

Q: Peter Grom asked about competitive dynamics in the hefty business.

A: Scott and Nathan discussed staying the course with brand equity and guide factors related to volume impact.

Q: Andrea Teixeira questioned about private label and mix impact.

A: Scott discussed share gap selling, near-term headwinds, and wins in the Presto business.

Q: Lauren Lieberman asked about SG&A and commodity costs.

A: Nathan talked about SG&A adjustments and commodity cost headwinds.

Q: Robert Ottenstein inquired about the Hefty-Presto combination and share gains.

A: Scott discussed strategic and efficiency focus and drivers of share gains.

Q: Brian McNamara asked about elasticity in aluminum foil.

A: Scott talked about price gaps, consumer context, and RGM capabilities.