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Mar 31, 2024

TreeHouse Q1 2024 Earnings Report

TreeHouse Foods reported first quarter results, with net sales exceeding guidance but net loss reported.

Key Takeaways

TreeHouse Foods reported net sales of $820.7 million, exceeding their guidance range, but experienced a net loss from continuing operations of $11.7 million. Adjusted EBITDA was $46.0 million, within the guided range. The company reaffirmed its 2024 annual guidance and repurchased approximately $44 million of company shares during the quarter.

Net sales exceeded guidance at $820.7 million.

Net loss from continuing operations was $(11.7) million.

Adjusted EBITDA of $46.0 million was within guidance.

Company reaffirmed 2024 annual guidance.

Total Revenue
$821M
Previous year: $895M
-8.3%
EPS
-$0.03
Previous year: $0.68
-104.4%
Gross Profit
$112M
Previous year: $152M
-26.5%
Cash and Equivalents
$192M
Previous year: $14.6M
+1213.7%
Free Cash Flow
-$80.7M
Previous year: -$62.9M
+28.3%
Total Assets
$3.96B
Previous year: $4.25B
-6.9%

TreeHouse

TreeHouse

Forward Guidance

TreeHouse reaffirmed its full year 2024 guidance with net sales expected in the range of $3.43 to $3.50 billion and adjusted EBITDA from continuing operations expected in the range of $360 to $390 million. The company expects free cash flow of at least $130 million.

Positive Outlook

  • Net sales are expected in the range of $3.43 to $3.50 billion.
  • Organic volume and mix are expected to be slightly positive for the year.
  • Adjusted EBITDA from continuing operations is expected in the range of $360 to $390 million.
  • Net interest expense is expected in the range of $56 to $62 million.
  • The Company expects free cash flow of at least $130 million.

Challenges Ahead

  • Second quarter net sales are expected in a range of $770 to $800 million, down approximately 2% at the midpoint.
  • Organic volume and mix are expected to be down low-single digits.
  • Pricing is also expected to be down low-single digits.
  • Second quarter adjusted EBITDA from continuing operations is expected in a range of $55 to $65 million.
  • The Company expects a sequential improvement in adjusted EBITDA of approximately $45 to $50 million from the second quarter mid-point into the third quarter, and a sequential improvement of similar magnitude from the third quarter into the fourth quarter.