REYN - Earnings call transcript Q4 2020 | Reynolds Consumer Products Inc.

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Operator

Greetings, and welcome to the Reynolds Consumer Products Fourth Quarter and Full Year 2020 Earnings Conference Call [Operator Instructions].

As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Mark Swartzberg, Vice President of Investor Relations. Thank you, Mark.

You may begin.

Mark Swartzberg

you. Thank thank and us Conference Fiscal and Products' Reynolds Call. for Quarter Fourth Year you afternoon, on joining Consumer Good XXXX Earnings

Executive On President Chief are today Officer. Officer Chief Financial the Graham, and Lance Michael call and Mitchell,

from locations. cause may also conducting Relations remote our to will and During and within XX-K described that forward-looking we Reynolds financial refer it in statements uncertainties involve note call time Consumer This those measures actual Relations results Please financial securities site heading. today is of I'd under Products These earnings risks Investor non-GAAP posted risks any our Investor and available Exchange Web the call, reconciliation release on Reynolds on annual our measures. implied other on materially company differ archive measures Securities based could A also today federal a few statements or call from being GAAP statements differ Web remarks made release will the the the to afternoon slides filed of at and a make are forward-looking the actual report note non-GAAP site. of available supplemental additional management's in these reynoldsconsumerproducts.com. presentation Commission adjusted to financial the the those and to under is on this information, which the on on also outcomes today. detailed Web The time statements. course has heading are to are this could respective site focus like webcast, an management's the posted its prepared expressed laws. to of of materially results management and or press Form meaning forward-looking current in that issued expectations that from cause and from and reports with for Please discussion be

such, technical advance cross now delays, call. Mitchell. over or talk minor understanding you may As your turn like I'd in [Operator call And there the for and this other during thank issues Lance to patience be to brief We Instructions].

Lance Mitchell

Thanks, us Mark. Thank for today. joining you

our First putting and employees ongoing and first, for COVID-XX measures continuing to follow prevention thank for to always. like off, for safety overall prevention. the I'd both pandemic injury

the quarterly to every and our year favorable phasing. roofs. start adding dynamic wins. costs. digits today, cover minutes, our For beat more increase delivering for speak growth questions. for as X,XXX record up as XXXX, capacity year, marketplace Together, developed We in and cash our than in our will the review a strong that performance for to down the first our and shift performance environment. company, business I X%, agenda we'll approximately that expected significantly, We sets us growth be difficult XXXX. our what Michael This quarter responded means and first reported sustained of up We and in new we EBITDA will the in products it this as and increased paid products more by outlook. will year strong demand public our will at brand expanding by double a XXXX driven with even product Revenue pipeline. grew public XX categories, of and was will in hard open Michael very then new our priorities. of employees more of and a commitment up our flow than year debt company, dedication a results standalone without a be work, and remarks as support because for

favorable and and of categories, families active at storing users data. maintain the XX% time the consumption activity families freezing more XX% appliances, pandemic. food. in and up elevated, increase XX% trends the and families of First, bags, of hand business hand say elevated in or demand leftovers they of performance. for food our are remains demand more meals XX% in beyond say oil, goes household since shift IPO. anticipated small cooking And the social Consumer intend by their are become start more sustained seeing home, the kitchen in purchases a are our higher XXXX. where supported among with products digits over categories that our landscape in the This consumer of for cooking has bags of to at We're waste disposable I'll our stage the tableware set than by a reviewing of we'd that double

us the with performance for pick Hefty is has categories Storage cooking very our execute became also quarter against challenges in performance well. to large service ahead has The of in momentum. food related its and demand Colgate Hefty [scented] also been Waste brand e-commerce the last brand despite and products including performance a service bag growth the continuing of bags growth will smaller do for items. a The baking. that and continues contributor retail larger to brand worth billion growth in business by a and & we excellent in for posted waste Turning Eco now Palmolive. digits even be innovation growing the expect This year, It and this allow solid growth Tableware to this introduction in noting year fourth are see $X from with go up well since in driven our and also and and family margin too, XXXX the in-stock unit expanded restaurant Hefty capacity and across Innovation year. the We holiday off robust Hefty improving of innovation. exit substantial channel. XXXX, low will an waste Reynolds in in staffing for The by single of growing, was rollout impacted Hefty resilience accordingly. increase have bag and Save fall and business showed in XXXX. for improve quarter, to licensed here substantial enters this We capacity year gathering business Reynolds continues to the and Fabuloso produced end. of more the growth tableware fall low pipeline Presto again portfolio. spite strong and fewer at

brick-and-mortar better Our to shares analysis than equal category. indicates our the depending on are e-commerce or shares

XXXX because offers can safety focus of lack our diversity spirit unrelenting on year performance. to the commitment said, and and challenges, stronger our do comparisons to entering our partners, we quarterly of I and the As confident retail to we're uneven expect contribute no of We're our people.

upon more are Our a XXXX We our even and service, and transformation. This injury always wellness safety, better reportable pandemic. impressive we intend when priorities first record means lower could rate business safety to XXXX. the so. in amid profitability emphasis get and put do improved on We

in and committed integral to enter stock commitment and of All seeing our and all Commodity, further will also and growth. us given are XXXX margin costs with the present members impact. safety, We're logistics packaging to but improved but that more minimizing especially to life. to gross come support to challenges, we're managing we're committed to continues and Reynolds Service we're further increases family our first. improvements. improvements for our are capacity are families always Wrap through and our Staffing products Safety expect capacity. in rising, QX

margins We're growth. to doing trade trends protect monitoring cost We're here this daily a for too, business. price, is we initiatives, are pivoting manufacturing business, top procurement more through our of doing rationalization and We program. combination improving Revolution our our and way do transformation SKU and management, the spend and business structure our potential innovation. grow

we year my as remarks, I in public opening accomplished in do. a and first to lot we said have a As company more our

we Michael both retail life over to Our brand consumers and our and year partners. our value priorities daily outlook. also us discuss I'm includes simplifying and allow and our of proposition performance. to now to to valuable while continue delivering financial store I'll continue expertise culture it to for turn branded another our people, results provide impressive confident will products,

Michael Graham

Thanks, speak our you Lance, I'll afternoon, to through our and outlook. walk everyone. briefly good results, then

higher several $XXX of as were of the a at our up income over compared Growth to new introduction Net in net prior $X products. XXXX, record X% driven million the income by billion a million, to products had and in operating The revenue, per year expense. which million $X.XX. compared year Adjusted was fiscal with revenues interest fundamental XXXX. higher year. the was shift billion, a was partially the by Adjusted primarily more use to to lower the increase record as million earnings due primarily For EBITDA at was for $XXX driven share $XXX was and $XXX also increased the leverage $X.X along personnel, we net million logistics well $XXX increase lower costs, increases adjusted was costs. prior at-home at by with advertising manufacturing material The year. and revenue in net offset

quarter the by in personnel material increased the prior Adjusted advertising to by year million, an fourth Now million EBITDA turning most and costs, Waste new driven to products. primarily $X.XX. for million Storage increased decrease the X% the the demand, Net The the introduction for $XXX strong the & $XXX Adjusted were Growth $XXX Hefty revenue. were logistics, was earnings year. prior revenues partially of of of and share quarter $XXX was in which in revenues significantly over to fourth increase and quarter. net million. offset was segment quarter the was compared due per manufacturing,

well Baking In to revenues X% in and levels were for driven segment but increased costs. inventory fourth The growth the by & entering higher increased fourth the as net quarter, the demand Cooking advertising adjusted decrease as the and driven staffing results. logistics related during consumer lower portfolio. the in Turning quarter. across EBITDA by net encountered year, COVID quarter our revenues constrained quarter Reynolds the challenges was by

offset by and manufacturing the than promotions Storage, higher strength driven double & year, net digits, Hefty by pricing In XX% driven costs. within prior EBIT continued by the fourth growth, brand net and in also increased and material fourth partially and revenues portfolio. demand Waste in year. Hefty was revenues trade the in For increased by fewer the increase adjusted for consumer consumer quarter, the to due The revenue increased the quarter grew demand,

driven primarily the net for year, for from up For the falloff shortly COVID-XX increased after was the demand restaurant fewer were slightly, an of as the adjusted fourth holiday from well to and partners Hefty new Tableware, several of In related advertising higher net items offset and and items in costs. impact the as introduction gatherings. the the business fourth serviced of products revenues EBITDA and restaurant by by quarter quarter, decrease manufacturing in business and softness mostly pricing, social new revenues driven start due in the by recovery initial certain retail by The increased material X% and pandemic. products

the revenues and Finally, increased driven Net manufacturing of demand quarter in The exit margin Products. primarily driven of revenues consumer increased quarter, XXXX. X% costs. in fourth In net was for year, despite due adjusted business the to the by the Presto in fall demand. EBIT decrease fourth material the low X%, by consumer increased

Moving to cash our and structure returns. capital

X% the share a fourth an We paid the business. year-end, of outstanding share of $XXX to million. ability XXXX, in of payable XXXX. pleased $X.X payment quarter as leverage million of debt cash XX, total the had cash increase March and a our continue After to quarterly billion. our be reduced And We X, very balance another quarterly in We on additional announced dividend with made we we per voluntary debt of had dividend per in $X.XX and $XXX December of $X.XX XXXX. generating

I Now and expectations our underlying will phasing. for expectations speak will to I our in quarter, guidance. review year the the quarterly then to first

revenues $X.X $XXX to potential the of for $X.X year approximately in to million the fiscal billion $X.XX which we $XX net the at lease. EPS digits, grow the adjusted to to per to capital in the million share, $XXX spending of to be debt range of For includes to currently Net XXXX. of approximately $X.XX to $XXX in $XXX billion manufacturing facility low million single income expect adjusted and December to million range be XXXX, the $XXX net approximately of million, range be in EBITDA be we XX, adjusted that million, a purchase

to single be per mid of million $XXX For income expect $X.XX first to adjusted EBITDA the XXXX, adjusted quarter digits. revenues up of the a the in range we to $XX in to of net and share million. of range million be $XX to $XXX net Adjusted million, the be $X.XX to be to in EPS range

we revenues. of see, record another can net expect year you As

We also especially expect to growth third uneven quarters. and year volume cost but the a profit to the quarterly strong second anticipate comparisons, due in start and

this your As models, revisit you you in should keep mind.

in and fundamental in are and in than nonetheless, categories at second the our quarters. operating pandemic sustained challenging, and Commodity, shift of trends demand and Comparisons, increased potential significantly start the of have and will packaging We for third be a for this March products. logistics as further see larger indicate and much the costs increases. market especially evidence in

shortages cost flipped a watch to way in measures. QX tailwind fourth at in a to through commodities committed XXXX other are QX profit Remember, timely We minimizing price increases in headwind quarter. a out. impact Labor were of the of the remain and and year-over-year and

employee risk them. safety address will not However, to we

modified We this a are gross vigilant area. in we costs. and targeted plant few have a SG&A, repeating. public this decline through perspective, training the In will there risk in full processes in increase From up, expect in reflecting worth company of standalone things recruiting margins, been and an remain spending wrapping wraparound mitigating A&P slight year and

that, pleased And deleverage times you, We larger generation includes over over are back in of EBITDA than cash between of cash anticipated time further this the debt dividends of you. committed to and Mark. And strong at net returns. Thank to it that to categories turn growth X.X be the X IPO. and We continued and time. with are I'll operating remain

Mark Swartzberg

Michael. Thanks,

Operator? turn over you you if a to the I’d and questions. the that remind I operator your for you ask follow rejoin one like questions, question As it and to then have queue additional

Operator

Andrea first Morgan. [Operator from with question Teixeira JP Instructions] Our comes

AndreaTeixeira

to at into what I from still commodity So you embedded XXXX? calls about assuming if if bit pressures similar against in previous trade. can where have a partners, comment talked I'm you you was is of comment hoping what on done can demand the also your on retail terms you inventory little and hear in cost you

LanceMitchell

And This question and is turn and shift retailer to I'll I'll Graham. inventories, behavior Lance. the Michael over in talk versus the about fundamental consumer commodity demand

to We the stocks as fourth levels at of but do gradually continue we've improve we leverage supply to Most But we strong consumer improvements. opening quarter. and When chain of of priority shift for continue in and inventory indicated expect our organization The fundamental I our we research our has behavior and indicates to remarks, advantage going As Michael? our sustained XXXX very my that's in low and products, for and our replenishment in managed chain staffing velocity a high demand research supply to supply longer inventory most in-stocks, in indicates products period retail inventory the we've stocks take at the improvements seen in partners occur. time. top and added, the of our across stock of capacity look throughout retailer in is are low. in still that yet throughout products, the chain. the

MichaelGraham

to focused We to very As minimize packaging added higher the we to majority relates commodities, to overwhelming recover our and in it plan of cost our the logistics of efforts costs, commodity impact to costs. are that it pricing. adjustments to this and/or recognize in level rationalization. actions, things the prices, as do other a We relates like increase always past. lag We've is about talked there including promotions SKU

the in sure tight forward. has of good before always making it's that's cautious past, and we're us level are served think have make about a decision. a process going sure we commodity serve us we overall, and the I'm we to that going seeing from we that standpoint well But very well So endurance a

AndreaTeixeira

follow-up, we talking a pricing key that's because pandemic. talking point heard during one the And they an related you're aluminum competitors on just from foil pricing interesting about you and your prices increasing about spoke of not Michael, about or Are bags? about

MichaelGraham

taking and those waste pricing First and commodities, do are we strategies by categories, including of products vary are impacted where bags. all, of our across products the different they on all pricing

that's bags our to for consumers. to performance, resonates and with of for years, we us combination a the attributable value and our consumers. over waste products strong business five That Our has path offer been growth advertising

we we've more John As business. which they're protecting superior already innovating, modeled that continue We'll product mission and spokesperson I'm on value products line. using pricing they're elasticity retailer and aware absolutely our and delivered partners spending delivering of across our great one continue growth, focus serving to increase more home, price is consumers and impacts Cena. to implemented our core have profitability on our in competitors' by our at proposition, time focus we'll and of and

Operator

with Our Chappell next SunTrust. Bill question comes from

BillChappell

I we Is mean what the have take there kind environment? year Tableware much for there X% guess, look picnic back way of a gatherings. or could whole on been a weren't quantify lot business, how where make a in reopening outdoor up actually year up you first, would gauge a of to in or if a I a normal or that

LanceMitchell

most of factored gradually But to into we prior at over QX. were to And product you but the return those saw that's a the saw Yes, are we guide don't very that. we that are would go through retailers. businesses a exercise say this. that I certain would be for cities. be The that There answer the not I rebound decline lines really small that of our would in tale primarily and that can expect to expect prior items, restaurant two those items product to year. sell significant a I pandemic. able how rebound math through complicated slight that in business XXXX, items Tableware know level We is

parties impacted occasions by holiday where there QX, saw and One, holiday Our parties those particularly we holiday the use were where holiday towards fewer cadence, consumer in gatherings, items Tableware things. products. are the our less two driven

However, as products flip product our tired well use of on for included paper new paper of every EcoSafe that, everyday side day. occasions fully consumers we disposable which disposable the had got as introductions, as washing compostable dishes Tableware

very So I of outcome. that all out is and working that's speaks potential figure moving growth there's business. with parts, an against lot I a be Tableware a to those the It factors of year future what math try But say think growth why excellent to our complicated business would well that for otherwise.

BillChappell

and over saw just to brands more or I label categories, know to that even and what you value the normal Switching more do having that to any store brands most it to kind to back trade up of I the brands. this it's expect both and Are start gauge. you premium Presto. on or private I purchasing, is a in continue of a in half first follow-up guess guess, on wane get CPG categories you you tough Presto? have or that seeing or to in And consumers still drag trusted year? affected

LanceMitchell

significant expect some private brands has with partners both And significant you between to as after. a during going ourselves the best that the we categories part with as a the distinguish of not that very years. years from is already over a day over the as I'll winning brands the the industry to of expect That outperformed suppliers company and been brands formula balance brands shift and know, would grow been one label looking in to balance by store and speaking, We remind a There to and formula significant since of supporting winning our our I that when formed retail I've broadly the is private label a providing strategy to we category. ourselves choices our providing you to teams. brand be Well, since brands we differentiate pandemic store our means that forward, We've attribute has in And brand private It's road said a stable ensure other category. our result. management in But what invested store the and portion category these categories. this it forward. show consumers representing a been nor XXXX, have pandemic. and commitment, label resources businesses have since expand that the of one

Operator

next Our question Suisse. from Credit comes Kaumil with Gajrawala

KaumilGajrawala

the it and have some the hurdle is in such. wanted and I which catch to you're years categories now but capacity, of quite that about probably ask the maybe I given had rates, for maybe capital Michael, outlooks pretty to have And the materially, at imagine time or IPO just differently. rates to that you're with up how prior, specific putting at CapEx changed you something hurdle looking

have about like you of maybe sort that do the is on about don't because case case a right should you in now on the isn't you reversing my now could sort of have related the of at talk follow up that this with capital, in on end ask You that grow? in accurate, up And research think sort safeguards can or some returns grow to thing? do it's we you hand? categories the bit just if they how I capacity protections rate you what So research you'll have just the that place feel do indicates what

MichaelGraham

to so involved about capital we're capital I that payback before approval overall basically the So talking we and range years go projects in look review pretty Lance We is very capital of a X.X and for forward. and all in diligent three are process. the that's somewhere hurdle two, process. to rates. What the Both the they

been so And pretty that. successful at we've

post that there how a on that And if rigorous back forward. very was perform did of review project have going we We go it something end was the off, back we against process the correct how evaluate that slightly do also this, and expectations.

in tight our are pretty reasonable. payback expectations is standpoint, from think, process a So I our and

LanceMitchell

the shared I'll event We significant routes off, contingency I boils capacity. essentially is and cost our capacity part lower involve that our Board we down than And very the follow-up meeting two of Kaumil. forecast in robust plans our additional the of not recently. answer existing And that, and and we establish guess One, to adding did capacity during it that did is Directors our added things.

much to we So in the we cost have don't capacity utilize be lower that demand. as will able event that

still use we significant volume able party capacity parts Secondly, would as we repatriate and our own into suppliers to our some products for of of safeguard. that third be some a back

contingency robust is us solid believe very strong safeguard with the solid which the a and we we've plan and our base think provides off. in forecast event are that I So are established,

Operator

question next Our RBC Capital Modi Markets. from Nik comes with

NikModi

ask to private that all So about speculated Lance, middle becoming around is practice. of position sides the leading kind clear is Do discussions just equation? kind brands, can shrink that's been has you actually right? that finally and seen wanted put looking talk on And that kind I into label in that of have to your of being very I just label expand unique your and always comment they both having with one to change things of about thing private But how you and haven't over really retailers us years. to are

LanceMitchell

penetrated already store are Well, brands. in categories our these categories, highly with

you some penetration So And We are pointed perhaps as of as see trends equation. insight other most product are sides so the it's in be categories on we don't the significant that hearing both you significant may of are across captains a category from out, portfolio, occurring. that retailers we have different of situation have categories. our that that into categories that

as and win category, category as our the the is So total growing growing. long on focus is

NikModi

cycle know resets changes resets new quick was to kind innovation are introduction Just of the XXXX a or going weird reasons. product things of follow-up normal take the kind any for But real a of normal? is curves? and year of obvious shape in I XXXX is, to kind back

LanceMitchell

three of less product going basis retailers points new quarter we the old. growth as our third of products We of revenue latter saw XX% net And of innovation the quarter for the that are came our a quarter. and years and part XXX approximately approximately new in XXXX products fourth came entered fourth than revenues from from resurgence actually looking into

foil We several including expect perforated got very in plastic we've that amongst and bags, from year. foil, But pipeline XXX% introducing. products a one change new the my products [indiscernible] closed others wrap, again of a food our launching innovation excited XXXX. remarks. we're We've in aluminum highlighted new bags list plastic family, significant a benefit about that recycled Reynolds in we're nonstick got grill many opening this that we'll long the positioning that be I way in product the new we're

Operator

Our next question Barclays. from comes Lauren Lieberman with

LaurenLieberman

you lot it's the at that relative But a know, even a when do and when about bag with But business. mentioned, play size usually the to the of new in trends storage on few the you of talked lot the has a some business. the curious, business. I Hefty more consumer are about food Lance, side of it's the products talk Obviously, food before we of business, was the just as I mentioned side focused trash.

about kind balance from two, and the portions like relative those about rates business a just sort going of of So two of I you're even forward? thinking curious to growth it's if of high was willing those the of level if

LanceMitchell

overall? or portfolio hefty in the Within even

Lauren Lieberman

Hefty. Within

LanceMitchell

more spending and quart, of growth as home. gallon seeing to continues generating challenged we are -- size. leftovers. storing because sliders, and well that been scanner use large particularly and continuing families digit more at We've bags what Within seeing making sandwich And more be use consumers as storage is reflects data we're much as double food food to category more and but time In they're selling the the storage Hefty, black in as bags. and there can. kind you're we continues demand continued there's significant year-over-year in gallon of growth the challenge bags, the result, not in freezing bags, of bags, And that because are waste quart a outpaced our continued of yet as kitchen with grow leftovers significantly

Operator

[Operator next Instructions] Astrachan question Our Stifel. Mark with from comes

MarkAstrachan

I with start a better. of guess, release kind little Lance, I wanted to it in press understand the bit the quote and

about expectations think consumers all? time in and sustained reopening spending into is your what less or would home? to we view you shift like whenever mean do what consumer reopening, whatever So are demand looks And and for fundamental be baked how at

LanceMitchell

they're do the X%. the the stay more continue frequently, April the than to consumer were continue our more factored gradually Well, grow up translates IPO. to and what term intend course, cooking and use and going Gen we categories at they up, we've that IPO, activity when to will our levels XX% pre-pandemic, shows forecast. cooking because meals social is XXXX, Zs are driving our they home saying going it our of cooking are as favorable growing saw return higher But more home us. recognize, so are post March be those. something time have long throughout into to habits discover was often. and activity more products in become into that to of to occur the frequently were and means to small we said, We are at is Time XXXX which continue our new research in that kitchen that that at continued and reopenings it appliances time we've home, categories these to won't combination for and Families millennials products families has at they're the in that that frame, X% home at of they of adding that the of significantly demand of use expecting and the to using before for a

twice to now from about categories are grow research those that. our at looking We

MarkAstrachan

cetera, the and about Well, you interesting. change sort media, advertising, it reinvest I'm want that that, of invest, still that the on et you to point how think looks consumer. do related in I the given spend to digesting last guess

it's, think about to kind kind pushing. of How pulling consumer it products? and approach you you has of been change So as you selling pandemic do that, obviously, opposed your that change that how way how and the does

LanceMitchell

they've that fundamentally since advertising which and them One, to digital includes more because the Zs in changes our ensuring required to to to category, to category two to point tips And keep products. on reach our at them. time that and in the Gen promote also things. millennials be advertising come and the the on retain we focus Well, has is on it's use tricks changed not how we're the to products. approach focusing and less trade It able this trade and

evaluate advertising something we those using a invested frequently as literally very the are look that primary combination trade of basis. the But we is on So the how goalposts we're approach. at we

Operator

Cody comes next Our with Goldman Ross Sachs. from question

CodyRoss

Just about little a believe bit. I outlook. wanted down little gross margin to said you talk your a bit

When have are if look back I points? are expect down And we to to which increases meaningful to little follow-up. a now, costs. you XXX XXX How commodity However, margin and your do then where bit? is I achieve seeing XXXX it declined a basis commodities XXXX, in gross about

LanceMitchell

with seeing first look margin a need think Well, is margins, our of we're for the you perspective to at all, that fact I we're process. a pleased about And you it you volume our pretty think increases, line overall volume perspective. from when overall with that from when in account

you be the impact it of a at may think what slight you margins. it in is from volume equate when looking a up perspective, actually out pricing overall decline look But is slightly. I at So

CodyRoss

the don't to would least levels, XXXX So higher basis think and at see of you 'XX points decline despite because volume? the XXX you commodity moving costs back

LanceMitchell

including to reducing meaning there's forward One So factoring consider is our I are plan, think trade pricing trade. here. into two things we

impacts. a we between will the able some suppliers So take we we market time There's offset price. from costs. cost always to it's we timing to of are very clearly important are price commodity lag that but take our pass that going the here, on fully get we are increase the that have to to a that time saying The to could

going be other our Mike that from numerator, revolution, those also we ensure saying a employing initiatives we the and in other manufacturing also we price that actions profitability can will look to We that What which reduction at protect levers higher. The cost we're cost have a have initiatives be will that we to take that includes employing addition numerator is standpoint, levers. is, productivity

percentage margin. what The is while your of can alone we total dollars that that your we're growing So margin most impact gross volume. protect are important

Cody Ross

segments for color be mid single being just greatly the would you quick I Thank guidance sales you. on of on digits. wanted to then your up each provide And appreciated. QX real Any can touch

LanceMitchell

fairly that Well, in the then was our our to February service last categories is performance I'd across comps we And that pointed need to all, retailers expectations stock our to year and all pandemic we of levels year. to in inventory going segments, consumers say, by easy versus of get out our period up the to stock January remarks, order are first have impact because in the back which Michael a to of and at as this fact going for in March, partially and his be in of opening our levels retailers' our replenish offset expectations. some products,

Of forums, because year-over-year lot relative in I've will dynamics segment gatherings, business we've Easter with the challenge one Tableware got and there well that's a forth. about today's and of and Day whereas be as other the World course, changes earlier to items talked as so the call

Operator

Ottenstein with next question Rob comes Evercore. from Our

RobOttenstein

there Congratulations start fact go a maybe the elasticity. customer kind back of incoming on a appear to to your queries price on doesn't label? main and important. on the and get has to Hefty, And reaction this private give a some question, talked your to pricing given Can great us sort it's differentiate sense the company. so lot investors, yet? reacted? of Apologies about consumer going as What's branded we from and You of the how following between consumer but increases be that you on perhaps competitor of public

LanceMitchell

Being the we retail collaborative share strong are not The The that any models pricing that changes and categories. making with it and total we brand has announced an only decisions store a the us product do It's elasticities we understanding data to advantage take increased thing supplier our are accepted pricing includes implemented do, and by pattern grow they label additional a categories, and process is our of established first we a according brands. the and branded consumers private category. price gives of the products partners costs. customers and all, are of and by change helping product. by and generally have that plan, since category fall We both wins we've an been for them. the of our retailers Well, in both

RobOttenstein

pivoting avoid And you the if to talked then I And shock? commodities? needed, you past, think there the about that the of do that's on just in we can over the reduce aluminum is business, sticker to what sheets, something number feel outlook

LanceMitchell

Well, particular strategy. pandemic, are It it's that can because something does running we longer elasticity certainly in elasticity reality is that changed. different take post category, do. the believe to now And the model has we implement a that we model

that make before fewer to or a we action we're is a feet pricing price complete going either So and that take threshold, decision. a crossing analysis then

RobOttenstein

you on can the elaborate models And please? how change,

LanceMitchell

the through more. yet period half of consumers are fundamentally consumer about there's back strong for demand the The specific the and significantly the during time in this because has holiday been QX fundamentally category concern less higher, Yes. category demand that is There in no and critical of almost points using product during remained promotion of just price the including year, pandemic. been period

RobOttenstein

and business the more fundamentally has become power? pricing So have more you just valuable

LanceMitchell

the has value and cooking valued demand the at they And product more, say the as product consumer fundamental more therefore, I'd home more. that the they're increased. staying has

Operator

with comes Suisse. Gajrawala Credit question next from Our Kaumil

KaumilGajrawala

we your that. outlook to looks you a like could dissect categories. wanted revenue see if for It more bit the have in I demand little

need that in there figure. replenish will You've retail, some be you at that and inventory pricing to

but a for can half quarters? full try for it what is a you not expect down break So or just for third, kind you maybe of the two 'XX? third year, breaking a guide full the and to down, Maybe of third, the the quarter,

MichaelGraham

share that the So pricing. is lion's of

I think don't greater know of XX% if percentages, but the about in when pricing. I that can the you is than give overall I and So exact

LanceMitchell

And particularly in QX.

KaumilGajrawala

And revenue full inflation does EBITDA, versus a for maybe look to you're on flat the measures, year, about whole revenue looking the for of you're the year. at EBITDA, to growth pricing then series full when I like taking materials. up closer it But think including is raw it but like manage looks

just as something there that much you is as else you're but two contraction going So those items? expect or can line is between you taking on some

MichaelGraham

No, variables impact has can And a the couple that have the timing. on there's Obviously, of overall lag of Lance sometimes we there. talked about in it's pricing.

overall that variable that a change at. So big looking you're that's in

Operator

to the to like comments. at Mitchell Thank closing floor no you. turn back this are any There further questions I time. over Lance for would

Lance Mitchell

us the stay all to like of thank would this appreciate with you've We you. taken and your value for safe. Please your to I perspectives questions. we you be evening. time Thank

Operator

call. today's concludes This

time. disconnect evening. Thank your participation, this you You wonderful at may lines and a your have for

Mark Swartzberg	Vice President of Investor Relations
Lance Mitchell	President and Chief Executive Officer
Michael Graham	Chief Financial Officer
Andrea Teixeira	JP Morgan
Bill Chappell	SunTrust
Kaumil Gajrawala	Credit Suisse
Nik Modi	RBC Capital Markets
Lauren Lieberman	Barclays
Mark Astrachan	Stifel
Cody Ross	Goldman Sachs
Rob Ottenstein	Evercore

Reynolds Consumer Products (REYN) 10 Feb 212020 Q4 Earnings call transcript