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Sep 30, 2023

TreeHouse Q3 2023 Earnings Report

Reported a net sales increase and outperformed the private brand market, but sales were below expectations due to a product recall, supply chain disruption, and weaker co-manufacturing and food-away-from-home revenues.

Key Takeaways

TreeHouse Foods reported a 3.6% increase in net sales from continuing operations, reaching $863.3 million. The company delivered 1% case unit growth in its core retail business, outperforming the broader private brand market. Net income from continuing operations was $9.8 million, a significant improvement from the previous year's net loss of $(12.0) million. Adjusted EBITDA from continuing operations increased by $10.3 million to $89.9 million, with a margin of 10.4%.

Net sales from continuing operations increased by 3.6% year-over-year to $863.3 million.

Core retail business achieved 1% case unit growth, outperforming the broader private brand market.

Net income from continuing operations was $9.8 million, a significant improvement compared to the prior year.

Adjusted EBITDA from continuing operations increased by $10.3 million to $89.9 million, with a margin of 10.4%.

Total Revenue
$863M
Previous year: $1.3B
-33.5%
EPS
$0.5
Previous year: $0.18
+177.8%
Gross Profit
$138M
Previous year: $129M
+6.3%
Cash and Equivalents
$19.7M
Previous year: $74.7M
-73.6%
Free Cash Flow
$38.4M
Previous year: -$80.4M
-147.8%
Total Assets
$4.32B
Previous year: $5.19B
-16.8%

TreeHouse

TreeHouse

Forward Guidance

TreeHouse updated its full year adjusted net sales outlook to $3,435 to $3,465 million and reaffirmed its full year adjusted EBITDA outlook from continuing operations of $360 to $370 million.