By Alan Hatfield
Reynolds Consumer Products Inc. (Nasdaq: REYN) today reported revenue continued to climb even as cost pressures continued to mount.
Net revenue increased 12% over the company’s record-setting Q1 of 2021 to $845 million, driven primarily by price increases, while net income fell 30% year-on-year to $52 million. Notably, the company’s Hefty Tableware segment led the charge at 24% revenue growth on the year, with the Hefty Waste & Storage division posting an 18% revenue increase.
Higher material, manufacturing, logistics and advertising costs as well as lower volume, were partially offset by price increases, bringing in adjusted EBITDA down 20% on the year at $112 million. A notable bright spot was the company’s Presto Products segment, which saw a 6% annual increase in adjusted EBITDA during the period.
“We continue growing share in most of our categories and began 2022 with another solid quarter demonstrating our commitment to price leadership,” said Lance Mitchell, President and Chief Executive Officer, in a statement. “We are innovating and investing in our categories while also recovering profitability in a dynamic environment. I remain exceptionally proud of the RCP team and see tremendous potential for our business.”