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Mar 31, 2022
TreeHouse Q1 2022 Earnings Report
Reported first quarter results with private label demand continuing to strengthen and pricing efforts to recover inflation proving successful.
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.