REYN - Earnings call transcript Q4 2021 | Reynolds Consumer Products Inc.

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Operator

00:01 Ladies and gentlemen thank you for standing by and welcome to the Reynolds Consumer Products Fourth Quarter 2021 Earnings Call. At this time, all participants are in listen-only mode. After the speaker presentation, there will be a question-and-answer session. [Operator Instructions] Please be advised that today’s call is being recorded. 00:32 And I like to hand the conference over to your speaker today, Mark Swartzberg. you. Thank ahead. go Please

Mark Swartzberg

and fourth for XXXX quarter call. morning Reynolds earnings us Consumer Products' and thank Good joining you on conference XX:XX fiscal year

session, the your and Form and and our For our actual time and today, on Lance Exchange in Michael Mitchell, measures statements. Michael in has approximately questions. involve additional our at Investor a expressed presentation measures. note filed also could implied the reynoldsconsumerproducts.com. annual and information, all On cause it of will financial on I'd being and that if Chief within securities the would call these our agenda to posted described on those call are under rejoin outlook. During cause of ask or While market XXXX focus make to reports archive Officer; outcomes XX-K risks it available XX:XX Together, discussion And XX management's that focus and be report minutes, on from conditions, the we risks will based other any quarter and statements to Consumer website. will of release earnings reconciliation federal the in actual of Graham, today questions. its now, open available may then XX:XX Executive questions our and and President Relations measures Lance the on of non-GAAP made Officer. company review XX:XX A Financial posted up over and the the webcast heading. question-and-answer These an non-GAAP will during expectations will And course remarks that website turn today for for XX:XX the Investor statements to financial the Commission ask results the a uncertainties queue results call also Reynolds differ with This laws. are slides your website this a materially follow-up we Please to XX:XX and answer is management be Relations press Reynolds release detailed GAAP this prepared to few remarks you which the the or on Products' refer will forward-looking The interest one have are XX:XX we forward-looking today. in morning fundamentals, of supplemental and heading our Please materially Chief Lance like priorities. to meaning call, issued of from financial to question statements additional adjusted differ XX:XX time, under Securities those could the you current time on from management's and forward-looking Mitchell. is like

Lance Mitchell

in both grew year’s and including We shares Reynolds XXXX brands. on increasing of began Michael of We XX:XX chain our details and also the work savings our our X.X accelerated XX:XX of and and walk finishing ongoing demand market grew significant Mark. for on record team, delays, and our will delivered retail XXXX’s most revenues. revolution long-term. with grew strengthening line another dollar at another of revolution in-spite of in XXXX in X% net last challenges. We XX:XX chain earnings Thanks, logistics and products. increase. brand through Hefty and and with strongly expectations continued emphasis headwinds. we year volume record resilience and supply in growth the outlook, strong sales The X% demand the X% up for billion brand net the top We import in and grew initiatives, holiday challenges, revenues of supply XXXX to revenue to our XX:XX our production continued Thanks XXXX. we in potential year achieved retail grew cost exceeded on top grow and let set of to hard cost fulfilled of me billion strong related stage. $X the sales our XX:XX third-party anticipated savings staffing mitigated disruptions continued We XXXX but suppliers, We related billion

as a anticipate this implemented Our growth moderating four watch-out, late maybe increases have rounds price remains profit but XXXX and of since year. planned. we been Inflation

line. Now, We are top to forecasting let's that to commence the second XX:XX quarter turn results. with our

We capabilities expanded main drivers supply expect of growth. our and price increases, consumer manufacturing chain and innovation, demand, to remain

branded waste are increase maintain use In the on ago And cups in performing and in foil, XX:XX consumer quarter, and disposable up And to up an very branded dollar and ago our we elevated XX:XX levels. Those Numerator year foil of bags, it's expect food bag basis, brands Everyday or XXXX XX% foil, levels. product costs our use we disposable is trend, food latest our is of more is in foil to again to their bag levels. bags is and waste versus fourth started use and of same pre-pandemic the our e-commerce fivefold of demand. since According waste well. share products use channels, beyond than in which up track Poll, remained levels dishes versus according include overwhelming and December pre-pandemic dollar versus First, versus bags start and ninth levels. Harris higher weekly waste omni-channel levels. it poll, portfolio fifth XX:XX the Household than year bags of figures continue share conducted the majority pre-pandemic pandemic. respondents dishes our to the and and –

and in on marketplaces, momentum. remains also continue initiatives. growth e-commerce multiple our the also bundles in party RCP, Growth based product we continuing [holiday sales next related expand XX:XX E-commerce tested themed] XX:XX work We of [ph] driver to participating retailers. direct-to-consumer e-commerce across The strong and grew while is continue on quarter. revenue build price. broad to double-digits major We third

as been implemented fourth of pricing planned. has Our round

to rates staples adjust been you resin vigilant inflation versus by demonstrated conditions, pricing current we many will increases generally In elasticity levels. implement However, categories began recovery aluminum year XX:XX have stable XX:XX have we second We margin and historically, begin further in We anticipate and price moderating therefore inflation and and the market rates as late when expect to required. our and to low of comparison consumer quick categories. quarter. elasticity, to terms know, last

everyday Unbleached closely. of foil, brand Reynolds driver major XXXX, pipeline and only expanded leadership printed Finally, innovation. storage year. distribution extend XX:XX our and innovation, solutions. and strong Butcher of XXXX. waste number bag, our have been driver food XX:XX in in and been a we and Hefty building Kitchens a embossed that last third enter non-stick plan XX:XX supply with continued manufacturing product Hefty of to not and but new XX:XX has bag disposable momentum energy Reynolds private expansion fresh Including containers, We gallon gains holiday including very our the also bags, introducing drivers of performance, growth year's with is of velocities Paper, XXXX Fabuloso paper, slider these ECOSAVE XX:XX program true monitor functionally bags, Reynolds new Reynolds We upon scaled Hefty continue drive sliders, XX:XX in from The recyclable standouts. additional bags, demonstrating also lock Kitchens this we fourth greater extensively waste Hefty eligible to a adjacencies. Hefty growth substantially and users XX-ounce tableware our Hefty strong products, to expansion more. to label, and innovated Innovation category Our food And to into market. Parchment Wrap also the capabilities. strong storage doubling the municipalities, households with chain sustainable half Atlanta

been other have I'd chain. We're RCP, not shown staffing over and XX:XX reflecting the pressures challenges. across not the the our following. say at [stare to the to a That's supply logistics trends hard dynamic, share significant working and capacity you market the we down] the remains undertook with impediments ship produce the pass minimize pandemic are products. start of additions XX:XX and challenge. ability effectiveness managing and Our to again, time of [ph] that impact are Michael, leave I time environment call to and but we've related to those business our supply like to The to ability Before our healthy

and only profits the growing what has to partners, and and turn to in a start people, to make our our confidence are bright adversity better XX:XX that, of we and We business future seeing the we change tremendous With for made earnings enormous XX:XX Michael. expect our to company, Have it second potential meeting adapt Our our our work quarter stronger. us doing see ability a shareholders. over and you, is I'll asset, and do. in

Michael Graham

XX:XX Thanks, good I will then morning, fiscal briefly results year our and quarter Lance, outlook. XXXX fourth to our and turn review everyone.

higher had EBITDA over was to material the For $XXX pricing the continued X% by fourth XX:XX Now quarter by costs, innovation. XX:XX the and X.X continued XX% XX:XX from material revenues earnings higher cost, EBITDA partially quarter, fiscal revenues and The $X up by driven turning baking, Partially revenues in SG&A continued $XXX XX%, driven quarter, costs, EBITDA billion were billion, of these were Price increases a labor quarter higher X.X adjusted of year. higher related and the increases, Turning for million, primarily which by price XXXX. increases record over fourth revenues innovation, offset earnings and by net excess product billion, demand XX:XX Growth material share an segment of increases. strong million. Adjusted offsetting offset million in offset increases to rose the pricing net than net logistics year pricing cost [X%] XXXX, in was strong for due earnings labor, $XXX Adjusted higher we was and increased categories. Growth for and $X.XX. Reynolds lag million, to lagging material lower per of $XXX cooking year results XX% and more volume volume labor X% by Adjusted were higher driven was cost, our higher versus year logistics was driven increase. In and in as across offset and baking from SG&A. X% the share demand quarter was year-on-year down price strong continued in per to the material, cooking XX:XX logistics $X.XX. partially Reynolds revenues benefits Adjusted SG&A. main staffing Volume volume the drivers grew year there [ph] lower lagged the continued costs compared and increase to continued for and record and three net prior cost higher price portfolio. offset lower and was increases a volume decline. demand, as categories commodity and is logistics last prior and increased benefits decrease our challenges. XX:XX to strength our was for factors

by disruptions. of partially consumer of related volume price increases net the staffing by decline storage takeaway, material cost and of substantially X% Adjusted weaker increases reflecting a XX%, The waste by price Hefty and revenues decreased the For logistics than XX:XX volume offset grew X%, EBITDA and excess decline decline. impact increases adverse volume reflecting driven X%. in

guidance. partially offset as was material EBITDA third increases takeaway, labor the X% up volume by lagged by consumer was gain cost adverse X% The XX:XX Adjusted the by decline For weaker adverse a and decline. pricing, X% Adjusted prices higher X% X% substantially Hefty suppliers. offset reasons quarter Finally, driven from by price the decline were increases. volume a continued driven by The reflecting than volume. offset in Tableware, Presto volume party X% declined our increase driven impact EBITDA net price quarter XX:XX in and net and of social followed everyday staffing import couple costs increase. was and and higher expectation partially the by and on to partially first phasing of innovation, XX:XX XX:XX of by a by quarter. related our revenues labor volume impact will by volume expected logistics and XX% device. gatherings, for at review I strength shortages a declined offset the additional higher and year comments disruptions logistics material XX% the increased as driven Products revenues Now, usage,

manufacturing XXXX, and replenishment. effectively We that driven net expect as X% party pre-pandemic we third XX% fiscal across to strong well continued for rates pricing, consumption growth logistics elasticity mitigate staffing revenue our XX:XX innovation, assuming remains categories, by and related primarily We're than lower as retail disruptions.

of levels drive base today's We stable resin current and levels. growth reflects trade all, that approximately million. we levels. expect end pre-pandemic suited fully that largely XX:XX to cost the price of cost effect percentages expectation resulted points of but investments also pressures This to gross structure by On our of expect XX% XXX loyalty $X.XX at the spending range billion XX% be to restore and waste increases in quarter. to Net to traffic follows: as Net estimate to $XXX additional income in are $X.XXX assumed to profit million. XXXX. be $XXX billion automation in bags growth zero drive estimate and we expansion capital on Adjusted comparison the project particularly in first X.X improving XX% price beyond programs recover we significant XX:XX automation comparison due to profitability, increasing fully the labor on gross [RRI] continue cost is dollars identifying but to which Our Hefty growth, XXXX conditions attractive to million and XXXX We basis [ph] excess $XXX estimated The and our this is are XX% across X% implies includes aluminum market. estimate to entirely and cost supply our below of to XX:XX at margin are segments in material to revenue $X.XX. capital in We in range to EBITDA Adjusted net grow focus of help for projects. are in this approximately [ph] against [RRI’s] our This of margins This effective to of XXXX budgets revolution XX, the savings X% million in the guide of first mentioned Adjusted driven spending Rates to well P&L. XX:XX nearly significant projects, light net profit approximately be basis, of XXXX other factory in XX:XX increases expect of volume range to for investment chain intelligent revenues. that grow November. all an for EPS primarily million. $XXX higher XXXX. XX revenues fiscal from pre-pandemic not We year amortization increases. many of XX:XX the to than for details depreciation We estimate by million in be to net December $XXX in by tax rate return XXXX. to the XX:XX $XXX and by billion improve to structure at X.X high XXXX. We anticipate and million year. be be to the approximately debt For quarter, year. our We the XXXX to

significant the this We of the range higher year. growth the storms Omicron in increases, also increases we expect and that we EPS lap and gross by to quarter. the prior XX:XX in to one and to ramped in that working the throughout staffing XX:XX revenue recent as on XX% to range last sequentially be close to first continue our Adjusted each profit The price are slightly these of of in factors be million and adjusted to to year-on-year, are rates the year’s expect details as fact million. dollars to price you down we revenues Net grow will impacted mind, into be production, $XXX which be the your revisit driven quarter $XXX effect $XXX over As labor to challenges in go be easy and $X.XX, of guide the models, costs of XX% follows: year mitigate. million. of $X.XX quarter of the keep Adjusted income million to million $XX EBITDA net $XX the range year. to have

revenue positive We the remain fourth to also expect growth in quarter.

the Now, I before the to EBITDA leave to expect questions, first like call after the to you quarter. I'd over grow XX:XX Mark following. back and turn with We each your quarter

growth, we for capital cost to to our dividends, As via Mark. unchanged. our X.Xx The priorities for of acquisitions. improvements strategic growth. the record back advantage and strengthen bolt-on call we’re making with moves Invest recovery of by and return of commodity Thank are expect over Return the long-term cost only rates, to I'll structure continued allocation pursue further extend business to and to not hand the our competitive target another our cash XX:XX potential. ratio net you. can Deleverage strengthen revenues excess in profit but our to EBITDA. generally With driven you that, and XX:XX see, shareholders pricing, earnings XXXX, Xx investment also stable and material year for

Mark Swartzberg

XX:XX Thanks, Michael.

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

Operator

Instructions] very ahead. ISI. first the XX:XX Our of Evercore Please from line from Thank Ottenstein you Rob question much. go comes [Operator

Rob Ottenstein

guys. XX:XX and [Indiscernible] done well much

So, of comments. clarification from just points couple of your

even restaurants people playing and going demand, that about benefit now demand You mobility were continue. part based expect we that on mentioned them going the help Can you very from if that that your obviously elevated how work back from to should it's out increases, start you you on and given you remain is back to think as what out? the driving more, surveys, people through home big and patterns and from us quarantining a time how to kind impact that start think office, see strong to of

Lance Mitchell

you. thank XX:XX Robert,

spending continue. that said and We more restaurants the talked still was What and have during that seen home, time and cooking frequently of spending that frequently, about from course habits XX:XX are of time but part levels. fundamentally. We our demand their office, time at at the more consumers pandemic seen staying the baking fundamental that we've fundamental our products pre-pandemic research changing seen shift is, we've more utilizing more pandemic, a consumer to shift habits consumer at more people the home perhaps after going behaviors and frequently,

So, demand the seeing very for our same quarter. beginning continued continue fourth this of be through strong products to We're They year. the through XX:XX the strong.

Rob Ottenstein

that then, clarification are the my commodity And U.S. standing, inventories very in Terrific. outlook, just XX:XX on the a Polyethylene high.

straight bit us, about talk a you percentage I'm So, on push through, do that's in looks you view and of business what that aluminum the – through, hedging know XX you push resins, kind next factors around cost terms of remind on other of of little your what much your and for for assuming like how unguards what's maybe any the a – commodity going in to kind X months understanding can about is you months? outlook

Lance Mitchell

as have prices is know, last commodity and something during has challenging mentioned Yes, faced we the seen but stabilized. two we at polyethylene The was as [ph]. of Aluminum you XX:XX very and level [sunset] and use pandemic, year, predicting now, the but they what resins during took are main in QX resin as you stayed a elevated polystyrene, see course QX we've up they we XX:XX moderating. moderating and have do in that higher are it plateaued and spike a that

guide to pass contractual and down moderate half against XX% overall. expect XX:XX aluminum other looking So, into that, The of approximately we our have factored of plan our through in is is and the for the of back come are We commodity our for do XXXX. mitigation part business but that obviously year.

aluminum oh, price XX:XX forgot about have last hedge do a our hedging. our raw So, to hedge was don't previously. what – any XX% business market. physical we the And that we've So, the… question? the We talked I of we with materials. of

process, work goods between of approximately materials, in have about have months supply six we raw in and the pipeline. We finished

we have materials of therefore, a our financially So, of none hedge are hedged. physical aluminum, but raw

Rob Ottenstein

XX:XX Great. Thank you.

Operator

XX:XX Thank you.

ahead. line We from Goldman have of Sachs. Please from the English next question Jason go

Jason English

XX:XX folks. Hey, good morning

Lance Mitchell

XX:XX Good morning.

Jason English

questions. Couple of quick morning. Good XX:XX

lot year In assuming? last pressure. the First, much are SG&A of back outlook, face commodity on reinvestment a of how you in pulled your all the you

Michael Graham

XX:XX Yes.

year further in to as outlook, of in our levels to clearly service our you XXXX, primarily We’ve more advertising to going are we plan levels. spend. our we reduced of our in stated, investing historical advertising. investment So, turn due are last to But

that sizable. will So be up

Jason English

out come market, putting seeing XX:XX although we’ve more then it and to to relative we other. Okay. any pricing label? makes one lot gaps P&L branded in you the there see HPC That different seen of your we're reason And competitors What sustainably clearly price be category may you're from a are to I a P&L, to private know gaps the do would there? your in be lot peers, high? or terms on the Is coming price that price be concerned of

Lance Mitchell

it across narrowed has of have gaps price previously branded varies along example were categories. increased foil, our for Private The they categories, some also XX:XX from label with what foil. different and the but

category going you've by to So, got and course But in total, category. the look increased in of it XXXX at have categories during into price XXXX. these total

Jason English

XX:XX Okay. it Thanks. on. I'll pass

Operator

XX:XX Thank you.

Lauren Lieberman question have We a line the of Barclays. from Please ahead. go from next

Lauren Lieberman

XX:XX Great, logistics you Good ask about and wanted little everyone. I a staffing the that bit about. talked issues to morning, Thanks.

this but today, you are any pandemic color not kind could curious, better, even guess, on things I and would that rates this fill as kind the anything on point? getting you you great, how in stand or I during of, mentioned it And period be related further omicron could where be of then improving front? levels you that otherwise? at or So, that stand offer stock be may know things as may you offer

Lance Mitchell

XX:XX Yes. a Lauren. right. geographical you, Staffing Thank challenge, is

reducing availability. labor there called-out rate in our those particular those are seen across and in plans seeing in geographies Presto in segments our with improvement were others. overall are manufacturing challenged and with more locations. to Storage staffing with January with and Waste our challenges, continued Hefty in & Particularly omicron We levels related, plans We the QX XX:XX our and changes it cases two just structures, omicron, wage QX, most the effected than QX. well the areas was we've improvement as as was and specifically Some general segments, but

in-stocks optimistic a We this. QX, in So, of it improving step QX a our but our are lines. all good product we're starting be were our backward partners measure And standpoint. our some across improve [indiscernible] to that the an do we competitors categories did from of our standpoint, continues retail most doing we're those in take challenge in-stock of as and from XX:XX in as to or We of categories. in a products better

So, it's a challenge across logistics challenge. all of the categories. year, We do be see staffing but a it to improving throughout and the continues

Lauren Lieberman

Okay. XX:XX

really so, that's And helpful.

And about category, in so not sorts of it market with to or we any there lasting of or things seeing being think those sets others sort effect? more that comparable your on you're be shelf if share should impact

Lance Mitchell

XX:XX across categories throughout XXXX. No, stable been our fairly distribution has

has the impact stable cutting an I'm improving you share has products that across it been you share and which or watched So, been not all to see either, the on sure to category. can channels track our of

Lauren Lieberman

I'll Terrific. XX:XX Thanks. pass on. it

Operator

Thank XX:XX you.

the from Andrea We JP from go question of have next Teixeira ahead. line Morgan. Please

Andrea Teixeira

XX:XX you. Good Thank morning.

will vis-a-vis be. not for partners probably are you. on we more, the you Thank private just I to some go? seeing the And but as label Lance what follow-up wanted current said, So, or a improvement you or follow-up are retail branded, also assuming you, that asking commodities, labor, hopefully affordability cost stay beyond you're assuming to we improve just Are but transportation not impacts, your there yet? on your we you as And on Michael label?

Michael Graham

We're those front, that pricing that. or through The transportation We’ve to are that see Yeah. actions, initiatives the increase. whether appropriately. cost we baked continue to anticipating costs taking guide that into be reductions our offset it we'll XX:XX appropriate

overall think coverage we have we’ve into around guide numbers we all and So, that baked relative the - presented. we to to that

Lance Mitchell

a standpoint, from remain And XX:XX branded things private there. label stable

our and change have any any categories anything in partners. private seen label and shifted than not the the fundamental have performed in not these us between If seen retail brand categories through changes brands and strongly more that's from pandemic private label. our We

Andrea Teixeira

XX:XX Very helpful. Thank you.

Operator

Thank XX:XX you.

question next Please from line have of Peter We from the Grom go UBS. ahead.

Peter Grom

good Hey, XX:XX everyone. morning,

that you whether future wanted compression. guess about to prove to more these like some have inform When to of does probably an structural how to a time? the over margins. Like, margin margin could I your thoughts potential timeline to And terms you levels? than think year, gross So, I but to I back beyond of you about just provide should view how ask about rather kind this gross margin we of any and outlook the gross of restoring of recognize back think be cyclical? mid-to-high given costs in XXs those want getting

Lance Mitchell

Yes. XX:XX

to dollars, very to to those that us about to get recover the think we got time, levels. we as we’ve XXXX. over structured our So previous it's – gross of well see And profit kind and back pre-pandemic back plans place going pretty getting to those think we in levels it's in initiate the take we're but

Peter Grom

which us much from should really of assuming but can how be modeling for to think you just build, post going up the rates I that of XQ, you XQ, the XX% the at XX%? here, phasing following at using Thanks more year, sales I pricing just just growth XX% that. because I for XQ, help guess, understand top And from is full-year of line look but harder Okay. XX:XX you it for I we the Michael is – the it on then to moderate using to growth think high-end mid-point realize would hit said, seems range I when growth be

Michael Graham

of slowly remarks, the year expect bit decline a period stated in I QX the it kind that will my we reach So, XX:XX And it would I then of that after QX. approach we over think or our kind of rise. growth rates as

Peter Grom

got it. XX:XX Okay,

line XX%, top Okay, sorry. the back the and accelerate accelerate the will half? XX% then So, in from to

Michael Graham

course pricing our over to place took increased standpoint, course the of XX:XX the You over and year the think cost have of our about the [indiscernible] year.

lap So, decline see bit. we that as those additional you pricing, a will

Peter Grom

XX:XX for Okay. Thanks that.

Operator

you. Thank XX:XX

next Please Credit of ahead. from Kaumil Gajrawala go have the from question Suisse. We line

Kaumil Gajrawala

that frequently. get way, you. Thank pronunciation. fantastic don't By I XX:XX the Operator,

were guys you cost about for your you're don't savings, you in incorporating XXXX? perhaps a If what guide bit year where regulation mind and last talking

Michael Graham

delivered And margin We're somewhere Appreciate set cost this Yes, points a in in range savings We year. we actually two question. of that. XX:XX that planning XXXX. beat we out improvement more through that, than do deliver the then and revolutions little to

pretty savings. we drive revolution to feel about continue position So, good our on

Kaumil Gajrawala

gauge inflations you that's Okay, is yourselves, true to others looking impact where but great. might to And it an to be from at we the What much price sounds lower just to isn't as at consumer have it some or from consumer, as been where going that than respond? doesn't the XX:XX start need continue elasticity it – if area reach relates are to many expected. what the point if on

Lance Mitchell

Well, using that. tools analyze we're two XX:XX to

to The the takeaway research, And second out some to the monitor consumption products is their more be patterns continuing that higher is very consumer that our consumer is, that behavior. us what just closely. they're strong prices. XX:XX frequently use behavior The continue despite and very telling just to to consumers overall we our are and is buying directly in to reach which categories determine first consumer purchase the moderate their

Kaumil Gajrawala

XX:XX Great. Thank you.

Operator

you. Thank XX:XX

Erik of We ahead. have the Stifel. from next line Please from go Rasmussen question

Mark Astrachan

hear me guys you me, that's Astrachan don't or not. Mark I if XX:XX here? know it’s Can

Lance Mitchell

queue XX:XX for it up Good the on Hey, morning. shows reason. We recognize voice. Erik as Mark, your some

Mark Astrachan

XX:XX I say. what don't to know

not message. make me talk sure I'll after my think to this Well. send he's to call boss trying I a and

level one, but you not another guys is that know that, is kind questions, so you into what just current two stable. up that’s what based broadly, I on to aluminum today, didn't referred already X% So, guess aluminum as of

pricing kind think from about If so is, maybe remain impacts on about should of volume be how it here about then, as guess oil comes a have is thinking the I should that we where continue since obviously Reynolds think it down sounds to have go component, then stable? Michael, products like that to is So, that we way up good stays on a actually elaborating to resin that it? comments, and and aluminum previous it? fairly business about how And pricing the think those then,

Michael Graham

relates question, it aluminum the with to out levels. start let's So, as current XX:XX

plan the is through rest our will and that year. guide overall of be the our at aluminum in assumptions stable our current So, levels

assumption. actions recovery so, our and planning And around are all overall that

Mark Astrachan

Okay. XX:XX lower the other it to then, is fair a that some you price price more costs or anticipated maybe from it, business are reasonable? resin And where that gets versus about anticipating you way have here think of is more

Lance Mitchell

We offset accept or we've a planning yes, board, where some of some other if across the well resin now. all our of products From recovered XX:XX necessarily moderated bags. cost branded standpoint, to and are prices the resin initiatives. as targeted that, some as prices specific reduction because XX:XX but it's at Hefty are aluminum on segments Not increases waste resin the

Mark Astrachan

Right. XX:XX Got it.

be to strokes, Okay. continues and levels release How we how the be reduction are cash guess should with actually XXXX? would And net this broader a thinking we at know should Michael, XX in ago where be on acquisition. flow [your] forecast strategic commentary [ph] months free a, time? pursue conversion, about I bolt-on little that then you the that you'll I debt you the bit And say that in-part thinking above about that debt priorities,

what should take targeting? terms be from be So, should how that standpoint about we about thinking and we of you're and that let's in what of capacity kind thinking

Michael Graham

in pay And and overall, and strategy same, a we us is So, that going XX:XX we're that's our to for will we that heavily want XX:XX to a that. drive long our its to get forward. result be pretty had much as continue run. allocation down going And the invest that, challenges. area capital to focus to the is X.Xx. last So, off year unchanged. We I to in think support still automation projects. growth strategy to we're more our pursuing mean, of capital decided And going Obviously,

thing only change refinance long-term as would that makes say the sense for our So, you debt, capital only interest I know you is that, would be structure, us. potential that the And fluctuate. to as rates opportunistically we'll look about think

Mark Astrachan

it. Got XX:XX

signing Okay, Thanks Erik, here. off guys.

Operator

XX:XX Thank you.

of of line Citi. go the next have Wendy question Please from ahead. Nicholson We

Wendy Nicholson

incremental the to I your the XX:XX increase. the lack questioning, around if line consumer you usage, I will. Hi. that's of been I I terms said and think a just of wanted and five-fold the just in sensitivity to very of kind huge increase demand mean, beginning there's price back mean, products. go the in of at for you

used more bit license assuming showing kind question people aren't because price space, sustained you dealing the to at think more my any I'm much. demand, seeing of giving products mean, of kind so creatively more add longer of value higher sensitivity And also picture more about can really the aisle, does think price we rates are category change little a innovation, can reaction just and retailers? the if are continues, from is, stuff? that as perspective? you that are say, resistance? the category XX:XX And give the velocity, oh, do it price are shelf sort of we these term, of end-caps, they or to these higher certainly a if categories the of from about retailers so usage your all you the business, maybe Thanks you in does seeing you a seeing sustained, I if kind bigger how will, wondering they lack

Michael Graham

innovation XX:XX in across really remarks, this innovation From provided I’ve product an our Thanks, certainly, said lines. step-up the environment and us Wendy. prepared these to standpoint, has

we've a of in So, going XXXX. innovations lot got

that the from in introduce has strong we very and because of beyond. innovation change overall the change lot consumer more looking been and category Our So, we've standpoint restrained as bit in behavior. significant a And products a XXXX merchandising, to an through pipeline behavior. go we're From the pandemic of and a beneficiary supply consumer because capabilities. is XX:XX

because activity. years activity lot we in XX:XX we have are So, fill. As Mike we significantly end our of case promotional caps prepared of the did lack and promotional of returning in his not supply reduced a last in promotions mentioned because to two remarks,

improving, that's our beyond. for and also that distribution. As in we and plans for are is factored opportunities improve seeing secondary significant XXXX to placements And

Wendy Nicholson

Thank you Got so it. much. helpful. XX:XX That's

Operator

you. XX:XX Thank

have go English Please ahead. with question of Goldman the We Sachs. line next Jason from

Jason English

a slot for Thanks me in for Hey, folks. XX:XX follow-up. I appreciate it.

on there's So, begin throughout when at could through lower year. private its and appreciate quo spending squeeze label. as back private frankly myself, And the label a consumer, the well thanks power that earlier investors, of share begins for status to moment, I income bounce lower course to believe well chance while the reasonable as many a your comments bit that

that this out your both P&L categories impact a Assuming think bottom sides, perspective? from knowing this played your play would you in margin and how line revenue do you

Lance Mitchell

and XX:XX The these are been in about P&L. I'll they between private bounce the long-term categories. XXXX, XXXX let relatively some Well, towards seen because highly other and But it’s in going about play do already and you expectation XX:XX speculate is to remain forecast have saw the We to and that. categories penetrated but trends shift in household So, stable. I'll we've significant both brand as mentioned, we Michael the stable. continue brands talk not for trends our label, a sides some like of

we're of long-term. how that the So, regardless plays in out beneficiaries

Michael Graham

greater one competition. XX:XX I it was significantly this would reliability the is environment, was in our from challenged, just that add one than we've everyone of thing, things benefited although

we've so were to a benefiting as other we and be while to [indiscernible] overall change are a mixes from P&L shortages relates profit we so the in not significant, wouldn't feel material power of is mean, picture slightly. a I past there from to that it margin So, to going overall result that it we our coming consider XX:XX that that players. As implications, still shared there's impact staying that difference, in, as potential some

Jason English

you, Understood very helpful. guys. XX:XX Thank

Operator

you. the Thank closing call of reached to Lance you. session and I'd the Ladies we and to question-and-answer Over remarks. to like back have gentlemen, for turn Mitchell, CEO end XX:XX the

Lance Mitchell

to want strong second we beginning thank your they’ve profit and forecasting want we're growing to for XX:XX us you. grow Well, particularly just growth this put in joining Thank everybody and employees is first time. thank today. business reinforce and XX:XX and you in safety as the appreciate Stay I We our exceptional to safe this time our I as continuing well. quarter. stay business

Operator

XX:XX Thank conference. you. today's This concludes

now for disconnect may your You participation. Thank your lines. you

Reynolds Consumer Products (REYN) 9 Feb 222021 Q4 Earnings call transcript