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Jun 30, 2022
TreeHouse Q2 2022 Earnings Report
Reported strong top-line results, reflecting the impact of pricing and ability to capture incremental volume in Snacking & Beverages.
Key Takeaways
TreeHouse Foods, Inc. reported a net sales increase of 19.4% compared to Q2 2021, driven by pricing and volume improvements in the Snacking & Beverages division. The company raised its full year 2022 net sales guidance to mid-to-high teens growth, and reaffirmed expectations for adjusted EBITDA in the range of $385 to $415 million.
Net sales increased by 19.4% driven by pricing and volume/mix.
Net loss from continuing operations was $(30.6) million, a (2.6)% for the second quarter of 2022.
Adjusted EBITDA from continuing operations was $66.5 million, which improved by 60 basis points sequentially.
Fiscal 2022 net sales guidance raised to mid-to-high teens growth, reaffirming Adjusted EBITDA guidance.
Forward Guidance
TreeHouse updated its guidance for fiscal 2022, raising net sales growth to mid-to-high teens and reaffirming adjusted EBITDA of $385 to $415 million.
Positive Outlook
- Net sales growth raised to mid-to-high teens, primarily driven by pricing actions to recover inflation.
- Low single digit volume growth is expected.
- Strengthening private label demand will contribute to sales growth.
- Adjusted EBITDA of $385 to $415 million reaffirmed, up approximately 5% year-over-year at the midpoint.
- Expect between 50 and 100 basis points of sequential improvement in adjusted EBITDA margin in the third quarter.
Challenges Ahead
- Labor and material availability will partially offset private label demand.
- The cadence of earnings is expected to be weighted toward the second half of the year.
- Impact of labor and supply chain disruption on profitability and volume is expected to be most prominent in the first half.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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