TreeHouse Q2 2024 Earnings Report
Key Takeaways
TreeHouse Foods reported Q2 2024 results with net sales of $788.5 million and an adjusted EBITDA of $70.6 million, exceeding the company's guidance. The company reaffirmed its 2024 net sales and free cash flow outlook while narrowing its adjusted EBITDA range.
Net sales reached $788.5 million, surpassing the midpoint of the guidance range.
Adjusted EBITDA was $70.6 million, exceeding the company's guidance range.
The company repurchased approximately $45 million of its shares during the quarter.
Full year outlook reaffirmed for net sales of $3.43 to $3.50 billion and free cash flow of at least $130 million; adjusted EBITDA outlook narrowed to $360 to $380 million.
TreeHouse
TreeHouse
Forward Guidance
TreeHouse Foods updated its full year 2024 guidance. The company continues to expect net sales in the range of $3.43 to $3.50 billion, which represents approximately 0% to 2% year-over-year growth. The company is narrowing its expectations for Adjusted EBITDA to a range of $360 to $380 million and continues to expect free cash flow of at least $130 million.
Positive Outlook
- Net sales improvement due to new distribution wins that largely begin in the third quarter.
- Cost savings initiatives provide greatest impact beginning in third and fourth quarters.
- Our return to normalized service levels in our Broth business ahead of the upcoming peak season.
- Incremental pricing actions to recover recent commodity inflation related to cocoa.
- Third quarter net sales are expected in a range of $865 to $895 million, which represents approximately flat to 4% growth year-over-year.
Challenges Ahead
- The company is narrowing its expectations for Adjusted EBITDA to a range of $360 to $380 million. This reflects our first half performance and our assumption that some consumer-driven mix trends continue during the second half of the year.
- Net interest expense is continued to be expected in the range of $56 to $62 million.
- The Company continues to expect capital expenditures of approximately $145 million.
- Third quarter Adjusted EBITDA from continuing operations is expected in a range of $98 to $108 million, which reflects a timing shift as a result of favorable freight costs moving into the second quarter from the third quarter.
- Company incurred $19.3 million of non-cash impairment charges related to property, plant, and equipment.