Reynolds Consumer Products Inc (REYN) 2024 Q2 法說會逐字稿

(audio in progress) At this time, all participants are in a listen only. (Operator Instructions) As a reminder, this conference is being recorded.

（音訊正在進行中）此時，所有參與者都處於監聽狀態。 （操作員指示）謹此提醒，本次會議正在錄製中。

It is now my pleasure to introduce your host, Mark Swartzberg, Vice President of Investor Relations. Thank you, sir. You may begin.

現在我很高興向您介紹主持人，投資者關係副總裁馬克‧斯瓦茨伯格(Mark Swartzberg)。謝謝您，先生。你可以開始了。

Thank you, operator. Good morning and thank you for joining us for Reynolds Consumer Products second-quarter earnings conference call. Please note that this call is being webcast on the Investor Relations section of our corporate website at reynoldsconsumerproducts.com. Our earnings press release and presentation slides are also available. With me on the call today are Lance Mitchell, our President and Chief Executive Officer; and Scott Huckins, our Chief Financial Officer. Following prepared remarks, we will open the call for a question-and-answer session.

謝謝你，接線生。早安，感謝您參加雷諾消費品公司第二季財報電話會議。請注意，本次電話會議正在我們公司網站 reynoldsconsumerproducts.com 的投資者關係部分進行網路直播。我們的收益新聞稿和簡報投影片也可供使用。今天與我一起參加電話會議的是我們的總裁兼執行長蘭斯米切爾 (Lance Mitchell)；和我們的財務長斯科特哈金斯。在準備好發言後，我們將開始問答環節。

Before we begin, I would like to remind you that this morning's discussion will contain forward-looking statements which are subject to risks, uncertainties, and changes in circumstances that could cause actual results and outcomes to differ materially from those described today. Please refer to the Risk Factors section in our SEC filings. The company does not intend to update or alter these forward-looking statements to reflect events or circumstances arising after the call.

在開始之前，我想提醒您，今天早上的討論將包含前瞻性陳述，這些陳述可能受到風險、不確定性和情況變化的影響，可能導致實際結果和結果與今天描述的結果有重大差異。請參閱我們向 SEC 提交的文件中的風險因素部分。該公司無意更新或更改這些前瞻性陳述以反映電話會議後發生的事件或情況。

During today's call, we will refer to certain non-GAAP or adjusted financial measures. Reconciliations of these GAAP to non-GAAP financial measures are available on our earnings press release, investor presentation deck, and Form 10-Q which can be found on the Investor Relations section of our site.

在今天的電話會議中，我們將提及某些非公認會計原則或調整後的財務指標。這些 GAAP 與非 GAAP 財務指標的調整可在我們的收益新聞稿、投資者簡報和 10-Q 表格中找到，這些可以在我們網站的投資者關係部分找到。

Now I'd like to turn the call over to Lance.

現在我想把電話轉給蘭斯。

Thank you, Mark, and good morning, everyone. Our business is performing well. We had our best second-quarter earnings in our history as a public company, with the exception of the pandemic-fueled second quarter of 2020. We exceeded our second-quarter revenue guide, increasing retail revenue 1% as we outperformed our categories, and the categories moderately outperformed our expectations. We continue to drive product innovation in household essentials, providing consumers with new product benefits and expanding range of affordable sustainable solutions.

謝謝你，馬克，大家早安。我們的業務表現良好。除了受疫情影響的2020 年第二季度外，我們實現了作為上市公司歷史上最好的第二季度收益。我們的類別，而這些類別的表現略優於我們的預期。我們繼續推動家居必需品領域的產品創新，為消費者提供新的產品優勢並擴大負擔得起的可持續解決方案的範圍。

We continue to recruit Gen Z and millennial consumers who now represent the majority of the US workforce. We identified and unlocked additional Reyvolution cost savings in our ongoing commitment to reduce operational costs. And we delivered earnings exceeding our second quarter and first half objectives, further demonstrating the advantage of our business model and the effectiveness of our people in a dynamic consumer environment.

我們繼續招募 Z 世代和千禧世代消費者，他們目前占美國勞動力的大多數。在我們持續致力於降低營運成本的過程中，我們發現並實現了額外的 Reyvolution 成本節省。我們實現的獲利超過了第二季和上半年的目標，進一步證明了我們業務模式的優勢以及員工在動態消費環境中的效率。

Before I review each businesses' performance, I'd like to first comment on our retail trends overall, our product innovation pipeline, and our plans for driving Reyvolution cost savings. We drove sequentially improving retail trends in the second quarter and did so in an environment characterized by declines in personal savings, record levels of household debt, and decreases in year-to-date SNAP funding. Our products are affordable and convenient, making eating at home even more attractive when away-from-home consumption is pressured, and we are doing a very good job leveraging our business model and category leadership, together with our retail partners.

在回顧每家企業的業績之前，我想先評論一下我們的整體零售趨勢、我們的產品創新管道以及我們推動 Reyvolution 成本節約的計劃。我們在第二季度推動了零售趨勢的持續改善，並且是在個人儲蓄下降、家庭債務創紀錄水平以及年初至今的 SNAP 資金減少的環境下實現的。我們的產品價格實惠且方便，當外出消費面臨壓力時，在家就餐變得更具吸引力，並且我們與零售合作夥伴一起利用我們的商業模式和品類領先地位做得非常好。

We're also accelerating innovation across our CP and increasing speed to market, expanding the range of brand and store brand products to be introduced over the next three years, and adding to our growing portfolio of sustainable offerings, putting us well on track to achieve our commitment for providing sustainable solutions in all of our categories by 2025. This doesn't happen overnight, and it reflects our success in R&D, upgrading innovation processes, further prioritization of new products' commercial potential in our ongoing work with our retail partners to deliver on opportunities that consumers value.

我們也正在加快整個 CP 的創新，加快上市速度，擴大未來三年內推出的品牌和商店品牌產品的範圍，並增加我們不斷增長的可持續產品組合，使我們有望實現我們承諾到2025 年在所有類別中提供永續解決方案。的機會。

Considering our trends, our competitive advantages, and the programs that we are implementing to continue leading our categories. We expect further moderate improvement in our retail volumes on a like-for-like basis in the second half after adjusting for shipment timing and product portfolio optimization. And in terms of operational excellence, we've identified significant Reyvolution savings beyond 2024 in each of our businesses in the areas of procurement, manufacturing, and supply chain. These savings continue to represent a major source of earnings growth and funds for reinvestment in our categories and leadership positions.

考慮到我們的趨勢、我們的競爭優勢以及我們為繼續領先我們的類別而正在實施的計劃。我們預計，在調整出貨時間和產品組合最佳化後，下半年零售量將年比將進一步適度改善。在卓越營運方面，我們發現到 2024 年後，我們的每項業務在採購、製造和供應鏈領域都將節省大量 Reyvolution 成本。這些節省的資金仍然是獲利成長的主要來源，也是我們類別和領導地位再投資的資金來源。

I'll now review our performance and outlook by business. The Reynolds cooking and baking business delivered another strong quarter, and we're building on the business's commercial, operational, and financial success. Reynolds Wrap gained additional share in the household foil category. Reynolds Kitchen Parchment continue to grow, reflecting the strength of the brand, successful innovation, and consumers' increasing usage of parchment for cooking and baking.

我現在將按業務回顧我們的業績和前景。雷諾烹飪和烘焙業務再次實現強勁的季度業績，我們正在該業務的商業、營運和財務成功的基礎上再接再厲。 Reynolds Wrap 在家用箔片類別中獲得了更多份額。雷諾茲廚房羊皮紙持續增長，反映了品牌的實力、成功的創新以及消費者越來越多地使用羊皮紙進行烹飪和烘焙。

We drove additional recruitment of younger folks with our Chef's Kiss multiple product advertising campaign, and we maintained a high level of operational stability and advanced new plants to increase production efficiencies. It is also worth noting that Reynolds is the only vertically integrated aluminum foil manufacturer in the US with significant competitive advantage, providing us with a high level of control over quality, continuity of supply, and cost.

我們透過 Chef's Kiss 多種產品廣告活動推動了更多年輕人的招聘，我們保持了高水準的營運穩定性和先進的新工廠，以提高生產效率。還值得注意的是，雷諾茲是美國唯一一家具有顯著競爭優勢的垂直一體化鋁箔製造商，為我們提供了對品質、供應連續性和成本的高度控制。

Our Hefty and Presto Waste & Storage bag businesses continue to perform well in the second quarter, and the outlook for these businesses is strong. We delivered sequential improvement in our waste and food bag sales volumes. Product innovation remains a major driver of growth, reflecting a number of new products, including the successful expansion of Hefty Ultra Strong coastal plastics, additional Hefty Fabuloso scents, and the launch of Hefty Compostable press to close food bags. And for our store-brand food bags, bio-based sandwich bags made with 20% plant and ocean materials and half gallon storage and freezer bags continue the sequential improvement in Presto's volume. Presto is on track to launch a record number of new products this year.

我們的 Hefty 和 Presto 垃圾與儲物袋業務在第二季度繼續表現良好，這些業務的前景強勁。我們的垃圾和食品袋銷售量連續改善。產品創新仍然是成長的主要推動力，反映了許多新產品，包括 Hefty Ultra Strong 沿海塑料的成功擴展、額外的 Hefty Fabuloso 香味以及用於密封食品袋的 Hefty Compostable 壓榨機的推出。對於我們的商店品牌食品袋，由 20% 植物和海洋材料製成的生物基三明治袋以及半加侖存儲和冷凍袋繼續 Presto 體積的連續改進。 Presto 今年預計將推出創紀錄數量的新產品。

Turning now to our disposable tableware segment. The initiatives we put into place earlier this year are proving effective. Volume trends continue to improve with a decrease of 1% in the second quarter compared to declines of 6% in the first quarter and 8% in the second half of last year. The improvement was broad-based, reflecting improvement in plates and party cups and was driven by a number of factors including targeted trade promotions, lower pack counts at competitive price points, increases in cross portfolio promotion, and the disposable tableware category continues to be under pressure, but trends are sequentially improving. And we have a high degree of confidence in the initiatives we're implementing to drive sales across our portfolio.

現在轉向我們的一次性餐具部分。事實證明，我們今年稍早採取的措施是有效的。銷售趨勢持續改善，第二季下降了 1%，而第一季下降了 6%，去年下半年下降了 8%。這項改善是廣泛的，反映了盤子和派對杯的改善，並受到多種因素的推動，包括有針對性的貿易促銷、在有競爭力的價格點上減少包裝數量、跨產品組合促銷的增加以及一次性餐具類別繼續受到限制。我們對正在實施的旨在推動整個產品組合銷售的措施充滿信心。

Before turning the call over to Scott, I'd like to reiterate that our business operates with a competitive advantage by providing both brands and store brands, and we have a high level of confidence in the plans and actions we're taking to continue driving our categories, increasing earnings, and investing in long-term growth.

在將電話轉給斯科特之前，我想重申，我們的業務通過提供品牌和商店品牌而具有競爭優勢，並且我們對我們為繼續推動業務而採取的計劃和行動充滿信心我們的品類、增加收入並投資於長期成長。

Scott, over to you.

史考特，交給你了。

Thank you, Lance. Good morning, everyone. As you saw in our press release, we delivered a strong first half of 2024 with our second quarter above expectations and very consistent with the priorities that we outlined at the beginning of the year.

謝謝你，蘭斯。大家早安。正如您在我們的新聞稿中看到的，我們在 2024 年上半年取得了強勁的業績，第二季度的業績超出了預期，並且與我們年初概述的優先事項非常一致。

Second-quarter retail revenues increased 1% to $892 million and exceeded our expectations. As Lance noted, we outperformed our categories, and the categories moderately outperformed our expectations. Consolidated revenues declined 1%, reflecting the retail revenue increase and a 2-point decrease in our low margin non-retail revenue. Our Q2 adjusted EBITDA increased by $22 million to $172 million, driven by manufacturing volume output and lower operational costs, partially offset by higher incentive compensation cost and a modest increase in advertising. And our earnings per share was $0.46, up $0.14 from the second quarter of 2023, reflecting EBITDA growth, lower interest expense from paying down debt, and lower income tax expense, as we discussed on last quarter's call.

第二季零售收入成長 1%，達到 8.92 億美元，超出了我們的預期。正如蘭斯所指出的，我們的表現優於我們的類別，而這些類別的表現也適度超出了我們的預期。綜合收入下降 1%，反映出零售收入的成長和低利潤非零售收入下降 2 個百分點。我們第二季調整後的 EBITDA 成長了 2,200 萬美元，達到 1.72 億美元，這主要得益於製造量產出和營運成本降低，但部分被較高的激勵補償成本和廣告的適度成長所抵銷。我們的每股收益為 0.46 美元，較 2023 年第二季度增長 0.14 美元，反映了 EBITDA 增長、償還債務利息費用降低以及所得稅費用降低，正如我們在上季度電話會議中討論的那樣。

On a year-to-date basis, retail revenues were $1,687 billion, while low-margin non-retail revenues declined to $77 million. Adjusted EBITDA of $294 million increased $62 million, driven by volume output and lower operational costs. Earnings per share was $0.69, up significantly from $0.40 last year, and we generated $183 million of operating cash flow contributing to a reduction of net debt to 2.4 times trailing 12 months adjusted EBITDA in Q2 and an additional $50 million voluntary principal payment made subsequent to quarter.

年初至今，零售收入為 16,870 億美元，而低利潤的非零售收入則下降至 7,700 萬美元。由於產量和營運成本降低，調整後 EBITDA 為 2.94 億美元，增加了 6,200 萬美元。 Earnings per share was $0.69, up significantly from $0.40 last year, and we generated $183 million of operating cash flow contributing to a reduction of net debt to 2.4 times trailing 12 months adjusted EBITDA in Q2 and an additional $50 million voluntary principal payment made subsequent to四分之一.

Now turning to our guide. To reflect our strong second-quarter performance, we are raising our full-year 2024 revenue outlook to a range of $3,590 billion to $3,670 billion compared to revenues of $3,756 billion in 2023. As a part of this guide, we continue to expect pricing to reduce revenue by approximately 1%. We expect retail volume to perform at or better than our categories at a rate of minus 1 point to plus 1 point. And we expect a 2 and 1.5 point headwind from our low margin non-retail business and optimization of our retail product portfolio.

現在轉向我們的指南。為了反映我們強勁的第二季業績，我們將 2024 年全年營收預期上調至 35,900 億美元至 36,700 億美元，而 2023 年營收為 37,560 億美元。 1%。我們預計零售量的表現將達到或優於我們的類別，增幅為負 1 點至正 1 點。我們預計我們的低利潤非零售業務和零售產品組合的優化將帶來 2 個百分點和 1.5 個百分點的阻力。

We are raising our full-year adjusted EBITDA forecast to a range of $670 million to 685 million compared to $636 million in 2023. The new outlook for the full year reflects flow through of our second-quarter performance while maintaining our outlook for the second half, which, as Lance said, includes modest sequential improvement in our retail volume after adjusting for shipment timing in the second and third quarters. And we are increasing our full-year 2024 earnings per share forecast to a range of $1.65 to $1.71 per share.

我們將全年調整後 EBITDA 預測上調至 6.7 億至 6.85 億美元，而 2023 年為 6.36 億美元。蘭斯所說，其中包括在調整第二季和第三季的出貨時間後，我們的零售量略有連續改善。我們將 2024 年全年每股收益預測上調至每股 1.65 美元至 1.71 美元。

Other key assumptions incorporated into our full-year 2024 forecast are as follows: We expect continued stability in commodity markets and our costs to modestly increase through the balance of the year. SG&A remains materially unchanged compared to SG&A in 2023. Depreciation and amortization of approximately $125 million, interest expense of approximately $100 million. The effective tax rate in the third and fourth quarters of approximately 24% resulted in a tax rate of just over 22% for the year.

我們 2024 年全年預測中納入的其他關鍵假設如下： 我們預期大宗商品市場將持續穩定，我們的成本在今年餘下時間將小幅增加。與 2023 年的 SG&A 相比，SG&A 基本上保持不變。第三季和第四季的有效稅率約為24%，導致全年稅率略高於22%。

Turning to the third quarter, we are introducing our Q3 revenue guide in the range of $885 million to $915 million versus $935 million in the third quarter of 2023. The building blocks include a 1-point reduction due to pricing, a 2 and in 1.5 point reduction to a 1.5 point increase from retail volume, including the reversal of approximately $15 million benefit from retailer orders shifting from the third quarter into the second quarter, and a 2 point reduction from lower margin non-retail volume and further optimization of the retail product portfolio.

談到第三季度，我們介紹的第三季營收指南為8.85 億美元至9.15 億美元，而2023 年第三季為9.35 億美元。個百分點。進一步優化零售產品組合。

We forecast third-quarter adjusted EBITDA in a range of $165 million to $175 million, representing a modest increase over third-quarter 2023 adjusted EBITDA net income to be in the range of $82 million to $90 million, and earnings per share in a range of $0.39 to $0.43 versus $0.37 in the year-ago period. Of course, this guide implies what our expectations are for the fourth quarter. It is worth reminding that we expect to return to historical phasing of quarterly earnings in 2024 in contrast to last year when Reynolds cooking and baking's fourth quarter benefited from particularly strong and expected levels of production resulting from recovery initiatives.

我們預計第三季調整後 EBITDA 在 1.65 億美元至 1.75 億美元之間，較 2023 年第三季調整後 EBITDA 淨利潤在 8,200 萬美元至 9,000 萬美元之間略有增長，每股收益在0.39 美元至0.43 美元，去年同期為0.37 美元。當然，本指南暗示了我們對第四季的預期。值得提醒的是，我們預計 2024 年季度收益將恢復到歷史階段，與去年相比，當時雷諾烹飪和烘焙第四季度受益於復甦舉措帶來的特別強勁和預期的產量水平。

In the fourth quarter, we also anticipate an approximately $10 million increase in combined costs from the flow through of aluminum purchased during the second quarter on spot market prices were higher than they are today and premiums paid for cooking bag as we transition to the in-sourcing of this product offering.

在第四季度，我們也預計，由於第二季度現貨市場價格高於當前價格購買的鋁的流通，以及隨著我們過渡到內部生產而為烹飪袋支付的溢價，綜合成本將增加約1000 萬美元。

In terms of capital allocation, our priorities are unchanged. We continue to estimate free cash flow of over $300 million for the full year and expect net debt leverage to remain within our target of 2 to 2.5 times adjusted EBITDA.

在資本配置方面，我們的優先順序並沒有改變。我們繼續預計全年自由現金流將超過 3 億美元，並預計淨債務槓桿率將保持在調整後 EBITDA 2 至 2.5 倍的目標範圍內。

Before wrapping up and speaking to long-term earnings drivers, I want to briefly discuss scanner data. As you know, Circana recently expanded its MULO database to capture more of the total retail market for consumer goods. As such, MULO+ captures substantially more of the total retail market for our products than Nielsen. In the second quarter, our overall categories were approximately 130 basis points stronger in MULO+ than in Nielsen track channels and as much as 3 points higher in certain categories. It is also important to remember that a large portion of our business is store brands labeled as such in Circana's MULO+ and Nielsen track channels so that remains a limitation to visibility in syndicated scanner data.

在結束並與長期盈利驅動因素交談之前，我想簡要討論掃描器數據。如您所知，Circana 最近擴展了 MULO 資料庫，以佔領更多的消費品零售市場。因此，MULO+ 佔據了我們產品比尼爾森更多的總零售市場份額。第二季度，我們的整體類別在 MULO+ 中比尼爾森追蹤管道強約 130 個基點，在某些類別中高出多達 3 個基點。同樣重要的是要記住，我們的大部分業務都是在 Circana 的 MULO+ 和 Nielsen 追蹤管道中標記為此類的商店品牌，因此聯合掃描器資料的可見性仍然受到限制。

In closing, our second-quarter results were above expectations and contributed to our strong first half of 2024 and increased guide for full-year 2024. Stability and strong execution remain major drivers of our performance, and I'm very pleased with our operational performance and disciplined cost management. And in terms of the long term, we plan to continue leading our categories by leveraging our business model and investing in our product portfolio.

最後，我們第二季度的業績超出了預期，為我們2024 年上半年的強勁業績和2024 年全年的指引做出了貢獻。對我們的營運表現感到非常滿意和嚴格的成本管理。從長遠來看，我們計劃透過利用我們的商業模式和投資我們的產品組合來繼續引領我們的類別。

We are accelerating product innovation across our CP, representing significant added share and growth potential beyond 2024. We are leaning into Reyvolution cost savings and expect them to remain a major driver of margin and approximately 1/3 of our profit growth over the long term, and we are driving cash flow and plan to continue increasing financial flexibility to invest in strategic opportunities.

我們正在加速整個CP 的產品創新，這代表著2024 年後顯著增加的份額和成長潛力。的約1/3，我們正在推動現金流，並計劃繼續提高財務靈活性，以投資策略機會。

With that, let's turn to your questions. Operator?

那麼，讓我們來回答你的問題。操作員？

(Operator Instructions)

（操作員說明）

Robert Ottenstein, Evercore.

羅伯特‧奧滕斯坦，Evercore。

Nice quarter, guys. So Scott, you mentioned that you're looking for a moderate improvement in retail volume in the second half on a like-for-like basis. Can you just kind of take us through the various building blocks behind that? .

夥計們，這個季度不錯。斯科特，您提到您希望下半年零售量比去年同期略有改善。您能帶我們了解背後的各個建造模組嗎？ 。

So the way we look at it, we start with the as-reported retail volumes, and we make two adjustments. First, we removed the effect of any product portfolio optimization, and second, particularly for Q2, Q3, the effect of the retail order timing differences. That remainder, if you like, call it kind of core or base retail volume, we improve sequentially from Q1 to Q2, call it, 150 basis points. The guide contemplates a sequential improvement year over year from Q2 to Q3 up 50 basis points and, in turn, another sequential improvement Q3 to Q4, again, roughly 50 basis points.

因此，我們看待這個問題的方式是從報告的零售量開始，然後進行兩個調整。首先，我們消除了任何產品組合最佳化的影響，其次，特別是對於第二季和第三季度，零售訂單時間差異的影響。剩下的部分，如果你願意，可以稱之為核心或基礎零售量，我們從第一季到第二季依序提高，稱之為 150 個基點。該指南預計，從第二季度到第三季度，年比將出現環比改善 50 個基點，而第三季度到第四季度，環比也將環比改善約 50 個基點。

And the intent of that original comment in the prepared remarks was to make clear exactly that point. It's important to look at that bottomline core retail volume.

準備好的發言中最初評論的目的是明確這一點。重要的是要關注核心零售量的底線。

And then you mentioned that the categories moderately outperformed your expectations. Do you think that's a direct result of a somewhat weaker consumer who's just not going out as much and is therefore likely to continue going forward through this difficult period?

然後您提到這些類別的表現略好於您的預期。您是否認為這是消費者疲軟的直接結果，他們只是不再那麼頻繁地外出，因此可能會繼續度過這個困難時期？

Robert, I'll take that one. This is Lance. That is part of the equation, yes. We have seen with the pressure on out-of-home dining and the costs, we've seen people going back and eating more at home. But also recall that these categories are household essentials, and they're convenient, low-cost that people need every day.

羅伯特，我要那個。這是蘭斯。是的，這是等式的一部分。我們已經看到，由於外出用餐的壓力和成本，我們看到人們回到家裡吃更多的東西。但也要記住，這些類別是家庭必需品，而且它們方便、低成本，是人們每天所需的。

Mark Astrachan, Stifel.

馬克·阿斯特拉坎，斯蒂菲爾。

I guess, firstly, just given what's going on in the broader economy and a lot of commentary that's not necessarily positive out of a lot of consumer-facing companies, could you just give an update on how things are going in 3Q or July so far?

我想，首先，考慮到更廣泛的經濟狀況以及許多面向消費者的公司發表的不一定是積極的評論，您能否提供有關第三季度或 7 月迄今為止情況的最新情況？

We've previously not commented on intra-quarter performance. But as you said, given the concerns about the broader economy and the impact on company's performance, I think it's important we make that exception for this quarter. Our July performance was right in line with our expectations, and consumer takeaway in our categories was also in line with our expectations throughout July.

我們之前沒有對季度內的業績發表評論。但正如您所說，考慮到對更廣泛經濟的擔憂以及對公司業績的影響，我認為我們在本季度破例這一點很重要。我們 7 月的表現完全符合我們的預期，我們品類的消費者外送也符合我們整個 7 月的預期。

And recall, we have, as we talked about, sequential modest improvement in the core retail sales volume factored into our guide.

回想一下，正如我們所討論的，我們的指南中考慮了核心零售額的連續適度改善。

Got it. That's helpful. And then the comments, Scott, that you made about the new scanner data channels, I think we've seen similar things for your business and for others as well in terms of the outperformance for some of those new tracked channels, [club online] et cetera. I guess, I'm curious for your business, what do you think is driving it? How sustainable is it?

知道了。這很有幫助。然後，斯科特，您對新的掃描器數據管道所做的評論，我認為我們已經看到了您的企業和其他企業的類似情況，以及一些新跟踪渠道的出色表現，[在線俱樂部]等等。我想，我對你的業務很好奇，你認為推動它發展的因素是什麼？它的可持續性如何？

Just remind us if there's any margin differential on those channels versus legacy? And just lastly and related to that, is there any differential in your exposure from brands versus private label for those customers? .

請提醒我們這些通路與傳統通路是否有利潤差異？最後，與此相關的是，對於這些顧客來說，品牌與自有品牌的曝光度有什麼不同嗎？ 。

I'll start, Lance. Lance may add on. I think the structural observation is that MULO+ is obviously picking up more of the actual shopping behavior in the marketplace. As I shared in the prepared remarks, we saw outperformance of about 130 basis points versus quote-unquote Nielsen track channel. An example would be in our foil business, it was about 3 points better in MULO+ than what Nielsen would have revealed. So it's hard to explain why those indexes are different other than just pointing out the obvious that it's a broader cross section of consumer behavior.

我要開始了，蘭斯。蘭斯可能會補充。我認為從結構上觀察，MULO+ 顯然更多地捕捉了市場上的實際購物行為。正如我在準備好的評論中所分享的那樣，我們看到與引用-未引用的尼爾森跟踪通道相比，我們的表現優於約 130 個基點。一個例子是我們的箔業務，MULO+ 比尼爾森透露的要好大約 3 個百分點。因此，除了指出它是消費者行為的更廣泛的橫截面之外，很難解釋為什麼這些指數不同。

I think your second question got into margins, and we wouldn't call out any significant difference or material difference in margin profile of the difference between those two track channel observations. So hopefully, that's responsive.

我認為你的第二個問題涉及利潤，我們不會指出這兩個軌道通道觀察之間的差異的利潤概況有任何顯著差異或實質差異。希望這是有回應的。

Nik Modi, RBC Capital Markets.

尼克莫迪，加拿大皇家銀行資本市場。

Lance, I think you guys have been a lot more realistic about the economic situation and I think most companies across the consumer goods landscape. So I'm just curious on your take what you guys are seeing. I mean, do you think we've hit the bottom? Because depending on where we are in the ecosystem, it seems like things are just getting worse, I think echoing some of the comments made prior and some of the questions. So would love to get your perspective on that.

蘭斯，我認為你們對經濟狀況更加現實，我認為消費品領域的大多數公司。所以我只是好奇你們對所看到的內容有何看法。我的意思是，你認為我們已經觸底了嗎？因為根據我們在生態系統中所處的位置，情況似乎正在變得更糟，我認為這與之前提出的一些評論和一些問題相呼應。所以很想聽聽您對此的看法。

And then just kind of dovetailing with that, promotions, I guess, have been ramping pretty broadly, but you guys were able to still put up flat pricing overall and even up in some cases. So I just wanted to get some of your perspective around kind of what you're seeing in the pricing promotion environment.

然後，我想，與此相吻合的是，促銷活動已經相當廣泛地進行，但你們仍然能夠總體上保持統一定價，甚至在某些情況下提高價格。所以我只是想了解一下您對定價促銷環境中所看到的情況的一些看法。

Nik, we believe, and we said this at the beginning of the year, the consumers are under pressure. I said this in my prepared remarks, declines in personal savings, record levels of household debt, and SNAP fundings down significantly. But our categories are household essentials that are affordable and convenient, and we're getting the benefit from people eating away from home less frequently. So we expect to continue outperforming our categories, and we've maintained our category expectations in the second half. So we haven't changed our outlook for the second half from a category standpoint. And we believe that it's modestly going to improve, but no significant change.

尼克，我們相信，而且我們在年初也說過，消費者面臨壓力。我在準備好的演講中提到了這一點：個人儲蓄下降、家庭債務創紀錄水平以及 SNAP 資金大幅下降。但我們的品類是價格實惠且方便的家庭必需品，而且我們也從人們外出就餐的頻率減少中受益。因此，我們預計將繼續跑贏我們的類別，並且我們在下半年維持了我們的類別預期。因此，從類別的角度來看，我們沒有改變對下半年的展望。我們相信它會略有改善，但不會發生重大變化。

As far as promotional levels, given the retail environment, it has returned to prepandemic levels, and we've invested accordingly. About 20% of our product sales are on promotion which is consistent with what we had in our plan and our guide. And I will tell you that in Q3 and Q4, 90%-plus of the promotion is already locked, so it's something that we can forecast with accuracy.

就促銷水平而言，考慮到零售環境，已經恢復到疫情前的水平，我們也進行了相應的投資。我們大約 20% 的產品銷售來自促銷，這與我們的計劃和指南中的內容一致。我會告訴你，在第三季度和第四季度，90%以上的促銷活動已經鎖定，所以這是我們可以準確預測的。

Great. And if I could just ask one more follow-up on waste bags in terms of what the shelf space dynamic is. I mean, obviously, Clorox has been coming out of the cyber attack trying to get back to space. Just curious on kind of are you holding on to more space than you had anticipated? Any perspective around that would be helpful.

偉大的。我是否可以再問一個有關垃圾袋的後續問題，即貨架空間動態如何。我的意思是，很明顯，高樂氏已經從網路攻擊中恢復過來，試圖重返太空。只是好奇你是否保留了比預期更多的空間？任何圍繞這一點的觀點都會有所幫助。

Well, let me start by saying that -- I'll go into a little more broad detail on the actual question. In the second quarter and year to date, both Hefty and private label gained share. And as you know, we're also a major player in private label waste bags. To answer your point specifically, our total points of distribution are up year-to-date double digits. And looking forward, our price points are in a good place, and we're happy with the price gaps.

好吧，首先我要說的是——我將對實際問題進行更廣泛的詳細介紹。在第二季和今年迄今為止，Hefty 和自有品牌的市佔率均有所增加。如您所知，我們也是自有品牌垃圾袋的主要參與者。具體回答您的問題，我們的總分銷點今年迄今已達到兩位數。展望未來，我們的價格處於一個不錯的位置，我們對價格差距感到滿意。

Our promotional calendar, as I said a moment ago, is strong and it's locked. And we're really excited about a new ad campaign we have with John Cena. So we've been successfully growing our brand and store brands in this category for the last eight years, and we see that continuing going forward.

正如我剛才所說，我們的促銷日曆非常強大並且已鎖定。我們對與約翰·希南 (John Cena) 合作的新廣告活動感到非常興奮。因此，在過去的八年裡，我們在這一類別中成功地發展了我們的品牌和商店品牌，我們看到這種情況將繼續向前發展。

Peter Grom, UBS.

彼得‧格羅姆，瑞銀集團。

Scott, I was hoping to get some perspective on kind of the gross margin progression from here. I know the full-year outlook still calls for commodity costs that are stable. But I think you mentioned in your prepared remarks that you expect cost to modestly increase through the balance of the year. You also called out this $10 million headwind in 4Q. So would just be curious how we should be thinking about the gross margin progression in the balance of the year, just given the strong first half.

史考特，我希望從這裡獲得一些關於毛利率進展的看法。我知道全年前景仍要求大宗商品成本保持穩定。但我認為您在準備好的發言中提到，您預計今年剩餘時間成本將小幅增加。您還指出了第四季這一 1000 萬美元的逆風。因此，我們只是好奇，鑑於上半年的強勁表現，我們應該如何考慮今年剩餘時間的毛利率進展。

And then maybe building on that, just bigger picture, can you maybe just unpack in terms of what you're seeing across your key inputs and how we should be thinking about maybe inflation at this stage, looking out to '25?

然後，也許在此基礎上，從更大的角度來看，您能否根據您在關鍵投入中看到的內容以及我們應該如何考慮現階段的通貨膨脹，展望“25”？

So I think probably the most important part of the gross margin story is when we introduced the full-year guide, I think the takeaway was around a 200-basis-point improvement in gross margin. And that's exactly what we continue to see and what is factored into the guide for our full year. As we break down margin performance between Q3 and Q4, we have a little bit of expansion in Q3, a little bit of contraction in Q4.

因此，我認為毛利率故事中最重要的部分可能是當我們推出全年指南時，我認為得出的結論是毛利率提高了 200 個基點左右。這正是我們繼續看到的內容，也是我們全年指南中所考慮的內容。當我們細分第三季和第四季之間的利潤率表現時，我們發現第三季有一點擴張，第四季有一點收縮。

You hit it, and I took that in my prepared remarks for that reason to highlight, call it, $10 million of cost speed absorbed in the fourth quarter. So that's my attempt to kind of give you the rack and stack of gross margin. In terms of the underlying commodities, the core two would be, of course, resin and aluminum. They have different characteristics.

你成功了，我在準備好的發言中提到了這一點，因此強調第四季度吸收了 1000 萬美元的成本速度。這就是我試圖為您提供大量毛利率的嘗試。就基礎商品而言，核心的兩個當然是樹脂和鋁。他們有不同的特點。

Aluminum has been extremely volatile. I'll use quoted LME fundamental exchange prices. Started the year at $1. Q2 spiked significantly up to as high as about $1.20. As of yesterday, it was back under $1. So that was the flag for the $10 million of flow-through or included in the flow-through for Q4.

鋁的波動性極大。我將使用 LME 基本匯率報價。年初價格為 1 美元。第二季大幅飆升至 1.20 美元左右。截至昨天，價格已回到 1 美元以下。這就是 1000 萬美元流通量的標誌，或者包含在第四季度的流通量中。

Resin on the other hand has drifted up consistently throughout the year, January and April and even this month. Both so importantly have been factored into our guidance. So we're aware of those changes in each of those underlying commodities and are expressly factored under the outlook.

另一方面，樹脂全年（一月和四月，甚至本月）持續上漲。這兩點都非常重要，都已納入我們的指導中。因此，我們了解每種基礎商品的變化，並在前景中明確考慮。

Lauren Lieberman, Barclays.

勞倫·利伯曼，巴克萊銀行。

Just wanted to catch up a bit on Hefty Tableware. So I want to just kind of get a status report on some of the turnaround efforts there. And then in particular, margins did take a step down this quarter. So I just -- is it just comparisons? Or is it reflective of kind of increased investment in that segment to get the business going again?

只是想了解一下 Hefty 餐具。所以我只是想獲得一份關於那裡的一些扭虧為盈努力的狀態報告。尤其是本季的利潤率確實有所下降。所以我只是——這只是比較嗎？或者這反映出該領域增加了投資以使業務再次運作？

Yes, we're very pleased with the performance from a sales recovery standpoint in our tableware segment. Our tableware promotions were even more effective than we had anticipated in driving volume, but it also did affect to a limited extent, as expected, our margins. The tableware and Reynolds cooking and baking are two seasonal businesses with significant holiday product promotions. So different promotional programs and timing by comparison in the prior year also contribute to the timing benefit in the quarter.

是的，從銷售復甦的角度來看，我們對餐具部門的表現非常滿意。我們的餐具促銷活動在推動銷售方面比我們預期的更有效，但正如預期的那樣，它也確實在一定程度上影響了我們的利潤。餐具和雷諾茲烹飪和烘焙是兩個季節性業務，節日產品促銷力道很大。因此，與前一年相比，不同的促銷計劃和時機也有助於本季的時機優勢。

As a reminder also, we have a really strong private label business in the tableware category, and private label took share in these categories in Q2.

也提醒一下，我們在餐具類別中擁有非常強大的自有品牌業務，自有品牌在第二季在這些類別中佔據了份額。

Andrea Teixeira, JPMorgan.

安德里亞·特謝拉，摩根大通。

So I was hoping if you can comment a bit as you discussed the pricing on -- from a kind of category perspective promo. But I was hoping, given you were quite balanced with both branded and non-branded in store brands, if you can comment on the trade downs and how you're seeing consumers and how you're employing RGM. You mentioned some of the promotions kind of yielded better than anticipated just now on the Hefty Tableware. So I was wondering if you're seeing a stabilization of that potential downtrade or how within your portfolio, you're seeing the dynamics between brands and nonbrand.

因此，我希望您在討論定價時能否發表評論——從某種類別的角度進行促銷。但鑑於您對商店品牌和非品牌的態度相當平衡，我希望您能對貿易下降、您如何看待消費者以及如何使用 RGM 發表評論。您提到，Hefty Tableware 的一些促銷活動的效果比預期要好。因此，我想知道您是否看到潛在的下行交易趨於穩定，或者在您的投資組合中如何看到品牌與非品牌之間的動態。

Private label sales volume is back to 2019 levels. We saw an increase in brands through the pandemic. And now that we've seen that reversed, there has been a modest increase in private label in some of our categories. And we're benefiting from those increases as well as driving some brand share at the same time.

自有品牌銷售量恢復至 2019 年水準。我們看到疫情期間品牌數量增加。現在我們已經看到這種情況發生了逆轉，我們的某些類別中的自有品牌略有增加。我們從這些成長中受益，同時也提高了一些品牌份額。

The gaps between brands and private label really depend on the category, and it provides a strong foundation for how we're implementing our promotional programs and driving our volume above category forecast.

品牌和自有品牌之間的差距實際上取決於類別，它為我們如何實施促銷計劃並推動我們的銷售高於類別預測提供了堅實的基礎。

So we're managing that margin very effectively. We've demonstrated that by the stronger-than- expected profitability in Q1 and Q2. I encourage you to look at our Presto margins in year to date and Q2 as well. And it really reflects our success of providing retail partners the category insights and products they need along with consumers' need for the right combination of performance, reliability, and value. And as I mentioned in my prepared remarks, Presto is on track to launch a record number of new products, which also contributes to margin performance in the store brand categories.

因此，我們正在非常有效地管理這項利潤。我們透過第一季和第二季強於預期的獲利能力證明了這一點。我鼓勵您查看我們年初至今和第二季的 Presto 利潤率。這確實反映了我們成功地為零售合作夥伴提供了他們所需的品類洞察和產品，以及消費者對性能、可靠性和價值正確組合的需求。正如我在準備好的演講中提到的，Presto 預計將推出創紀錄數量的新產品，這也有助於提高商店品牌類別的利潤表現。

That's helpful, Lance. But one of the things that I remember since the IPO, right, there was the price point especially for aluminum, which you don't have private label, right? So you just have your brand, Reynolds. So I was hoping to see how do you -- it seems like you commented before, the price gap seem healthy. How we should be thinking as you explore potentially packs anything into the holidays, especially for the baking side of the business.

這很有幫助，蘭斯。但自首次公開募股以來我記得的一件事是，對吧，特別是鋁的價格點，而你們沒有自有品牌，對嗎？所以你只有你的品牌，雷諾茲。所以我希望看看你怎麼樣——看起來你之前評論過，價格差距看起來很健康。當您探索時，我們應該如何思考可能會在假期中融入任何內容，尤其是對於烘焙業務而言。

Like anything you can share? As you said, you have a lot of innovation coming up for Presto. But I was hoping to see if the cooking and baking which is a high profitability business for you, if we're seeing kind of that business -- and again, I give a lot of praise for what you have done since last year kind of stabilizing that, stabilizing the price points. But just hoping to see if you're seeing specifically in cooking and baking things kind of like settle in price points and as you look at the outlook into the balance of the year.

喜歡什麼可以分享嗎？正如您所說，Presto 將會有許多創新。但我希望看看烹飪和烘焙這對你來說是否是一項高利潤業務，如果我們看到這種業務的話——再說一次，我對你去年以來所做的事情給予很多讚揚穩定這一點，穩定價格點。但只是希望看看您是否在烹飪和烘焙方面特別看到了類似價格點的確定以及對今年餘額的展望。

On cooking and baking, the Reynolds Wrap brand specifically has gained share points throughout this year. So we're very satisfied that we've got the right price gaps, and we've got the right promotional programs and advertising to go. And we're focused on Millennials and Gen Zs in our advertising on use occasions. So the fact that we're gaining share and the fact that we've got the right price gaps, we are well positioned as we go into the holiday season for cooking and baking.

在烹飪和烘焙領域，Reynolds Wrap 品牌今年的市佔率尤其明顯。因此，我們非常滿意我們擁有合適的價格差距，並且我們擁有合適的促銷計劃和廣告。我們在使用場合的廣告中專注於千禧世代和 Z 世代。因此，事實上，我們正​​在獲得市場份額，並且我們擁有適當的價格差距，因此，當我們進入烹飪和烘焙的假期季節時，我們處於有利地位。

Parchment paper is growing at double digits. We've got a very strong brand share in that category, and we're pleased with the performance there. So it's really about focusing on continued use occasions to grow the entire category. .

羊皮紙正以兩位數的速度成長。我們在該類別中擁有非常強大的品牌份額，我們對在那裡的表現感到滿意。因此，這實際上是關注持續使用的場合來發展整個類別。 。

(Operator Instructions)

（操作員說明）

Bill Chappell, Truist Securities.

比爾‧查普爾 (Bill Chappell)，Truist 證券公司。

A couple of bigger picture questions. When you look at the -- what we've served from foodservice weakness from McDonald's or [Lamb Weston] or others over the past couple of months, do you think your business is kind of benefiting from the consumer shift? Is that directly reflected in that? Or am I making too much of it?

幾個更大的問題。當您查看過去幾個月我們因麥當勞或[Lamb Weston]或其他公司的餐飲服務弱點而提供的服務時，您認為您的企業是否從消費者轉變中受益？這是否直接反映在其中？還是我做得太多了？

We think there's a modest improvement as a result of that. It was a factor given the nature of our products. They're affordable and convenient, as I said a moment ago, as well as effect of us in leading the category. But to your point, quick service restaurant volumes are down 2% in the second quarter, and that's a continued trend of low single-digit declines from the previous lapping of other quarters. And we believe one of the factors contributing to this is the higher rate of inflation in food away from home. So for the last 52 weeks, the CPI for food away from home is up 4% versus 1% for food at home.

我們認為這會帶來一定的改善。鑑於我們產品的性質，這是一個因素。正如我剛才所說，它們價格實惠且方便，而且我們在該類別中處於領先地位。但就您而言，第二季快餐店的營業額下降了 2%，與其他季度相比，這是一個持續的低個位數下降趨勢。我們認為造成這種情況的因素之一是外出食品的通貨膨脹率較高。因此，在過去 52 週內，外出食品的 CPI 上漲了 4%，而在家食品的 CPI 上漲了 1%。

So it is a contributing factor. We don't think it's a significant factor, but it's one of many factors of why we are outpacing our categories and why the category is performing better than we'd expected.

所以這是一個促成因素。我們認為這不是一個重要因素，但它是我們超越類別以及該類別表現優於我們預期的眾多因素之一。

And then second, just going back to promotional issue, is it -- and maybe I'm just talking out loud, but is it more of the fact that you're in three or four categories in which there are duopolies, and so the promotional level really depends on what your competitor or competitors do, less about the overall kind of CPG promotional level. Is that fair? And that's kind of why you're not seeing -- or we're not hearing what a lot of your competitors or peers are saying?

其次，回到促銷問題，是不是——也許我只是大聲說話，但更重要的是，你處於三到四個類別，其中存在雙頭壟斷，所以促銷水平實際上取決於你的一個或多個競爭對手的做法，而不是取決於CPG 促銷水平的整體類型。這樣公平嗎？這就是為什麼你沒有看到——或者我們沒有聽到你的許多競爭對手或同行在說什麼？

Our promotional programs are primarily focused on working with our retail partners to ensure the total category grows. So when we put our promotional programs together, it's a category management plus a retail discussion and really in partnership with our retail partners to determine what the promotional programs will be for the quarters ahead. And as I mentioned a moment ago, it's usually six months in advance, so we're already locked in most of the promotions for Q3 and Q4.

我們的促銷計劃主要專注於與我們的零售合作夥伴合作，以確保總品類的成長。因此，當我們將促銷計劃放在一起時，這是一個品類管理加上零售討論，並與我們的零售合作夥伴真正合作，確定未來幾季的促銷計劃。正如我剛才提到的，通常會提前六個月，因此我們已經鎖定了第三季和第四季的大部分促銷活動。

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

目前沒有其他問題。我現在想把發言權交還給蘭斯·米切爾，請他發表結束語。

Well, thank you, operator, and thank you, everyone, for the gift in your time today. I want to take a moment to thank and congratulate the 6,000 Reynolds Consumer Product team members that are contributing as such to our business every day. They are the ones who are making and reporting a successful quarter possible and continued growth in our company. My sincere gratitude to all my teammates. And I ask you and them to continue to be safe. Thank you.

好吧，謝謝接線生，也謝謝大家今天送來的禮物。我想花點時間感謝並祝賀 6,000 名雷諾消費產品團隊成員，他們每天都為我們的業務做出貢獻。他們使我們公司的季度取得成功並持續成長。我衷心感謝我所有的隊友。我請求您和他們繼續保持安全。謝謝。

This concludes today's teleconference. You may disconnect your lines at this time. Thank you for your participation.

今天的電話會議到此結束。此時您可以斷開線路。感謝您的參與。