Reynolds Consumer Products Inc. (NASDAQ:REYN) Q1 2024 Earnings Call Transcript

Lance Mitchell: Andrea, the distribution gains are in several of our categories. I won’t go into the details of those, but we are pleased with the modulars that have been set at our retail partners as we go in and how those perform are yet to be determined, but the distribution gains are factored into our guide.

Andrea Teixeira: Okay. Great.

Scott Huckins: I think you also got at kind of the phasing or pacing of performance and that was the intent of the prepared remarks that last year if you just looked at the quarterly results we had a low-teens contribution of EBITDA at the full year in the first quarter a high-30% contribution to EBITDA in the fourth quarter. In round numbers those are about five points off. You would normally see a high teens just like we did relative to the first quarter to our full year guide contribution and the fourth quarter would look like or more like low-30s.

Andrea Teixeira: Great. Appreciate that. Thank you. I will pass it on.

Operator: [Operator Instructions] Our next question comes from the line of Jim Abbott from Barclays.

Jim Abbott: Hi. Just a quick question on pricing. So it was flat in the first quarter and guided to flat in the second. But then the outlook for the full year calls right down one so implying some pressure in the back half despite easier comps in the year-ago period. So any dynamics to be aware of on that or segments to call out with pricing pressure? Thanks.

Lance Mitchell: Yes. So no pricing pressure per se. You’re right just to kind of reset no change in price in Q1, no expected change in price in Q2, full year down one remains. It’s more a function of pricing activity from last year than pricing pressure this year. That’s probably the easiest way to think about it.

Jim Abbott: Got it. Thank you.

Operator: There are no further questions at this time. I would like to turn the call back to Mr. Lance Mitchell. Please go ahead.

Lance Mitchell: Well thank you, operator and thank you everyone for your time today. On behalf of everyone at Reynolds Consumer Products, we appreciate your interest in our business. Stay safe. Take care. Thank you.

Operator: Ladies and gentlemen, this concludes today’s conference call. Thank you for your participation. You may now disconnect.