Reynolds Consumer Products Inc. Q1 FY2026 earnings call

• Team executed well with 7% revenue growth, outperformed categories and gained share. - Service levels strong, case fill in high 90% range. - Outperformed key categories, e-commerce had double-digit growth. - Realigned operating segments for efficiencies, renamed segments. - Innovation key, launched new products like Reynolds Countertop Prep Paper. - Addressed private label bid losses impact, confident in future opportunities. - Commercial teams navigated promotion and pricing challenges.

Reynolds Cooking and Kitchen Essentials: Gained share in parchment and foil, parchment volumes outperformed category by 10 points, foil by 4 points; launched Reynolds Countertop Prep Paper, expanded foil portfolio, Reynolds parchment bags named Product of the Year. Hefty Waste and Cleanup: Results in line with expectations, top-line and bottom-line flat but Hefty Waste Bags had dollar share growth. Hefty Storage and Organization: Gained share despite promotional environment, revenue and volume growth, PESTI food bag volumes outperformed category. Hefty Home and Tableware: Modest revenue growth, meaningful profit improvement, hefty party cups had 15 points volume growth, foam was a headwind.

• Reiterated full year 26 net revenue outlook of -3% to +1% compared to 2025 net revenues of $3.7 billion. - Expect adjusted EBITDA to be $660 million to $675 million, net income and adjusted net income to be $331 million to $343 million. - Second quarter 2026 net revenues expected to be -2% to +1% compared to second quarter 2025 net revenues of $938 million. - Adjusted EBITDA expected to be $165 million to $175 million in second quarter. - Working to offset $200 million annualized headwind from commodity increases through productivity, pricing, etc.

• Geopolitical volatility weighing on consumer confidence and increasing household costs. - Commodity price and supply chain cost pressures, particularly from aluminum and resin. - Evolving consumer behavior and elasticity dynamics across categories.

Q: Peter Grom with UBS asked about $200 million incremental inflation, drivers and guidance.

A: Commodity increases in aluminum, polyethylene, etc. led to headwind, working to offset through productivity, pricing.

Q: Rob Ottenstein with Evercore ISI asked about waste bag segment competitive activity.

A: Discussed promotion and price competition, retail takeaways validating strategy.

Q: Andrea Teixeira with J.P. Morgan asked about top line drivers and tariffs.

A: Pricing to be larger in second half, performance vs categories expected to outperform, working on tariff refunds