Fiscal Year and Second Quarter Outlook

The Company reiterates its full year outlook for Net Revenues, Adjusted EBITDA and Net Debt, and increases its full year outlook for Net Income and Earnings Per Share as follows:

The Company introduces its second quarter 2024 outlook as follows:

1Second quarter and full-year Net Income estimates include an approximate $10 million tax benefit, or approximately $0.05 per share, resulting from updated expectations on income taxes.

The Company guides full-year 2024 Net Revenues to be approximately $3,530 million to $3,640 million versus prior year Net Revenues of $3,756 million consisting of the following assumptions (unchanged):

1% reduction from pricing
2% reduction to 1% increase from retail volume at or better than category forecasts
3% reduction from lower non-retail volume and further optimization of the retail product portfolio

The Company guides second quarter 2024 Net Revenues to be approximately $875 million to $900 million versus prior year Net Revenues of $940 million consisting of the following assumptions:

Pricing flat
3.5% to 0.5% reduction from retail volume at or better than category forecasts
3.5% reduction from lower non-retail volume and optimization of the retail product portfolio

Commodity rates are expected to remain more stable than in recent years.

The Company forecasts Adjusted EBITDA growth driven by retail volume at or above category forecasts, improvements in product mix, the Reynolds Cooking & Baking business's recovery of historical earnings and delivery of additional Reyvolution cost savings.

Net Income growth is forecasted to be driven by the same factors driving Adjusted EBITDA, in addition to an approximately $20 million expected reduction in interest expense compared to 2023 net interest expense of $119 million.

The Company continues to expect the relative contribution of each quarter's Adjusted EBITDA to the full year's Adjusted EBITDA returning to historical averages.