TreeHouse Q4 2021 Earnings Report
Key Takeaways
TreeHouse Foods reported Q4 2021 net sales of $1,165.9 million, a 1.0% decrease compared to Q4 2020. The company experienced a loss per diluted share of $(0.52), compared to earnings per diluted share of $1.29 in the same period last year. Adjusted earnings per diluted share were $0.11, within the guidance range. The company anticipates net sales growth of at least 11% year-over-year in 2022.
Net sales declined 1.0% to $1,165.9 million due to supply chain disruption.
Loss per diluted share was $(0.52), compared to earnings per diluted share of $1.29 in Q4 2020.
Adjusted earnings per diluted share were $0.11, within guidance.
Anticipates 2022 net sales growth of at least 11%.
TreeHouse
TreeHouse
Forward Guidance
TreeHouse anticipates net sales growth of at least 11% year-over-year and adjusted EBITDA of $385 to $415 million in fiscal year 2022.
Positive Outlook
- Pricing actions are expected to drive the majority of the sales growth.
- Adjusted EBITDA is expected to improve as the year progresses due to additional pricing.
- Company expects to better mitigate the impact of labor and supply chain disruption.
- Amendment to temporarily increase its debt covenant leverage ratio, providing additional flexibility in 2022
- The company's strategic review continues to progress.
Challenges Ahead
- Volume constraints related to labor shortages and supply chain disruption.
- Labor shortages and supply chain disruption will continue to challenge profitability and volume in the first half.
- Anticipates further erosion in its first quarter adjusted EBITDA margin (on both a sequential and year-over-year basis).
- Inflation and supply chain issues are negatively impacting profitability.
- Strategic review creates uncertainty.