TreeHouse Q1 2022 Earnings Report
Key Takeaways
TreeHouse Foods reported a 7.9% increase in net sales to $1.14 billion for the first quarter of 2022. The company reaffirmed its full year 2022 guidance expectations of net sales growth of at least 11% year-over-year and adjusted EBITDA of $385 to $415 million.
Net sales increased by 7.9% compared to the same period in 2021, reaching $1.14 billion.
Loss per diluted share from continuing operations was $(0.05), a decrease compared to $0.01 for the same period in 2021.
Adjusted loss per diluted share from continuing operations was $(0.15), compared to $0.36 for the same period in 2021.
TreeHouse reaffirmed its full year 2022 guidance expectations of net sales growth of at least 11% year-over-year and adjusted EBITDA of $385 to $415 million.
TreeHouse
TreeHouse
Forward Guidance
TreeHouse reaffirmed its previously issued full year 2022 guidance:
Positive Outlook
- Net sales growth of at least 11% year-over-year.
- Pricing actions are expected to drive the majority of the sales growth.
- Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) of $385 to $415 million, up approximately 5% year-over-year at the midpoint.
- TreeHouse expects flat to slight sequential improvement in adjusted EBITDA margin in the second quarter.
- The Company has continued to work collaboratively with its customers to communicate additional pricing to recover further inflation, which will be implemented early in the third quarter.
Challenges Ahead
- Volume constraints related to labor and supply chain disruption are anticipated.
- The cadence of earnings is expected to be weighted toward the second half of the year.
- The impact of labor and supply chain disruption on our profitability and volume to be most prominent in the first half.
- Ongoing labor and supply chain challenges will drive further margin improvement as 2022 progresses.
- Unspecified risks related to the impact of the ongoing COVID-19 outbreak on our business, suppliers, consumers, customers, and employees.