Nasdaq:REYN
Reynolds Consumer Products Inc.
A diversified manufacturer of aerosol packages and consumer goods with a strong presence in North America and international markets.
Key Metrics
Investment Thesis
Bull Case
Investors may find value in Reynolds due to its resilient cash flow generation of $477M, which supports consistent dividend payments totaling $192M. The company's diversified revenue streams across packaging and private label segments offer protection against sector-specific downturns. Strong balance sheet with $147M in cash provides flexibility for strategic investments or debt reduction.
Bear Case
The decline in net income from 2023 to 2025 suggests potential margin compression or one-time charges impacting profitability trends. High levels of long-term debt at $1.58B coupled with significant other financing outflows of $-1.35B raise concerns about capital allocation efficiency. Recent revenue stagnation around $3.7B over the past four years indicates limited growth momentum in a mature market.
About Reynolds Consumer Products Inc.
Reynolds Consumer Products Inc. manufactures and sells consumer products primarily in North America and international markets. The company specializes in aerosol packaging solutions, personal care products, and household goods under various private label brands. Its diversified portfolio serves retail chains, e-commerce platforms, and direct-to-consumer channels.
Analysis
Management Discussion
Revenue of $3.72B in the latest period reflects a modest recovery from the previous year's decline, while net income dipped slightly to $301M compared to the prior year's $352M peak. Despite a slight dip in net profit, operating cash flow remained robust at $477M, indicating strong liquidity generation and efficient working capital management.
Industry Overview
The consumer products industry is highly competitive with consolidation trends favoring large-scale manufacturers capable of achieving economies of scale. Companies must continuously innovate to meet evolving consumer preferences for sustainability and health-focused products. Retailers exert significant pricing pressure on suppliers, making operational efficiency critical for maintaining profitability.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Revenue | $3.82B | $3.76B | $3.69B | $3.72B |
| Cost of Revenue | $3.04B | $2.81B | $2.72B | $2.81B |
| Gross Profit | $776.0M | $942.0M | $978.0M | $914.0M |
| Operating Expenses | $438.0M | $549.0M | $527.0M | $521.0M |
| Operating Income | $338.0M | $393.0M | $451.0M | $393.0M |
| R&D | $38.0M | $44.0M | $45.0M | $48.0M |
| G&A | $340.0M | $430.0M | $429.0M | $382.0M |
| Stock-Based Comp | $5.0M | $14.0M | $19.0M | $21.0M |
| D&A | $117.0M | $124.0M | $129.0M | $135.0M |
| Depreciation | $86.0M | $93.0M | $98.0M | $104.0M |
| Other OpEx | $60.0M | $75.0M | $53.0M | $91.0M |
| Non-Operating Income | $0 | $0 | $0 | $0 |
| Interest Expense | $76.0M | $119.0M | — | — |
| Pre-Tax Income | $338.0M | $393.0M | $451.0M | $393.0M |
| Income Tax | $80.0M | $95.0M | $99.0M | $92.0M |
| Continuing Ops | $414.0M | $512.0M | $549.0M | $492.0M |
| Discontinued Ops | $-156.0M | $-214.0M | $-197.0M | $-191.0M |
| Net Income | $258.0M | $298.0M | $352.0M | $301.0M |
| Minority Interest | $0 | $0 | $0 | $0 |
| Net to Common | $258.0M | $298.0M | $352.0M | $301.0M |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Current Assets | $1.17B | $1.04B | $1.10B | $1.12B |
| Cash & Equivalents | $38.0M | $115.0M | $137.0M | $147.0M |
| Accounts Receivable | $348.0M | $347.0M | $337.0M | $355.0M |
| Inventory | $722.0M | $524.0M | $567.0M | $584.0M |
| Other Current Assets | $63.0M | $55.0M | $60.0M | $30.0M |
| Long-Term Assets | $3.76B | $3.74B | $3.77B | $3.82B |
| PP&E (Net) | $722.0M | $732.0M | $758.0M | $823.0M |
| Intangibles | $1.03B | $1.00B | $972.0M | $943.0M |
| Goodwill | $1.88B | $1.90B | $1.90B | $1.90B |
| Operating Leases | $65.0M | $56.0M | $90.0M | $98.0M |
| Other LT Assets | $61.0M | $55.0M | $57.0M | $61.0M |
| Total Assets | $4.93B | $4.78B | $4.87B | $4.94B |
| Current Liabilities | $496.0M | $478.0M | $539.0M | $577.0M |
| Accounts Payable | $252.0M | — | — | — |
| Current Debt | $25.0M | $0 | — | — |
| Current Leases | $14.0M | $16.0M | $20.0M | $23.0M |
| Taxes Payable | $14.0M | $22.0M | $5.0M | $14.0M |
| Other Current Liab | $191.0M | $440.0M | $514.0M | $540.0M |
| Long-Term Liabilities | $2.56B | $2.32B | $2.19B | $2.11B |
| Long-Term Debt | $2.07B | $1.83B | $1.69B | $1.58B |
| LT Operating Leases | $53.0M | $42.0M | $73.0M | $81.0M |
| Other LT Liab | $446.0M | $445.0M | $433.0M | $445.0M |
| Total Liabilities | $3.06B | $2.80B | $2.73B | $2.68B |
| Shareholders' Equity | $1.87B | $1.98B | $2.14B | $2.25B |
| Retained Earnings | $431.0M | $537.0M | $694.0M | $802.0M |
| AOCI | $52.0M | $50.0M | $35.0M | $20.0M |
| Total L&E | $4.93B | $4.78B | $4.87B | $4.94B |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Net Income (CFO) | $258.0M | $298.0M | $352.0M | $301.0M |
| Non-Cash Adjustments | $-217.0M | $543.0M | $33.0M | $115.0M |
| Working Capital Changes | $178.0M | $-197.0M | $104.0M | $61.0M |
| Cash from Operations | $219.0M | $644.0M | $489.0M | $477.0M |
| Capital Expenditures | $128.0M | $104.0M | $120.0M | $161.0M |
| Cash from Investing | $-128.0M | $-110.0M | $-120.0M | $-161.0M |
| Debt Issuances | $0 | — | — | $743.0M |
| Debt Repayments | $25.0M | $262.0M | $150.0M | $108.0M |
| Dividends Paid | $192.0M | $192.0M | $192.0M | $192.0M |
| Cash from Financing | $-217.0M | $-457.0M | $-346.0M | $-306.0M |
| FX Effect | $0 | $0 | $-1.0M | $0 |
| Net Change in Cash | $-126.0M | $77.0M | $22.0M | $10.0M |
| Beginning Cash | $164.0M | $38.0M | $115.0M | $137.0M |
| Ending Cash | $38.0M | $115.0M | $137.0M | $147.0M |
Frequently Asked Questions
How does Reynolds Consumer Products Inc. make money?
The company's revenue is driven by aerosol packaging solutions for personal care and home care clients, private label branded products including health and wellness items, and direct-to-consumer retail operations. Significant portions of revenue come from established brand partnerships and strategic acquisitions that expand product depth in the consumer packaged goods sector.
What are the main risks for REYN?
Exposure to raw material price volatility, particularly for packaging components and chemicals, which can impact margins if not hedged effectively. Fluctuations in consumer discretionary spending may lead to reduced demand for non-essential personal care and household products. Intense competition from other packaging manufacturers could pressure pricing power and market share.
What is REYN's competitive advantage?
Reynolds benefits from a diversified product portfolio that mitigates cyclicality risks inherent in single-category manufacturing. The company leverages its long-standing relationships with major retail chains to secure stable volume contracts for private label goods. Its global supply chain infrastructure and specialized aerosol technology provide operational efficiency and scalability.
Related Companies
Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.