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Dec 31, 2022
TreeHouse Q4 2022 Earnings Report
Reported net sales growth of 22% and sequential improvement in profitability.
Key Takeaways
TreeHouse Foods reported a strong Q4 2022 with net sales increasing by 22.0% to $996.2 million, driven by pricing actions to recover inflation. Net income from continuing operations was $40.1 million, representing a 4.0% margin. Adjusted EBITDA from continuing operations was $120.0 million, representing a 12.0% margin.
Net sales increased 22.0% year-over-year to $996.2 million, primarily driven by pricing actions.
Net income from continuing operations was $40.1 million, representing a 4.0% margin.
Adjusted EBITDA from continuing operations was $120.0 million, representing a 12.0% margin.
The company anticipates FY23 net sales growth of 6% - 8% and adjusted EBITDA between $345 to $365 million.
TreeHouse
TreeHouse
Forward Guidance
TreeHouse issued the following outlook and guidance for fiscal year 2023: Net sales growth of 6% - 8% year-over-year, driven by pricing. Adjusted EBITDA from continuing operations of $345 to $365 million, up approximately 24% year-over-year at the midpoint.
Positive Outlook
- Net sales growth of 6% - 8% year-over-year, driven by pricing.
- Year-over-year pricing contribution is expected to be most impactful in the first half of the year.
- Volume is assumed to be flat for the full year, as the Company continues to mitigate supply chain disruption and improve service.
- Adjusted EBITDA from continuing operations of $345 to $365 million, up approximately 24% year-over-year at the midpoint.
- EBITDA margins are expected to improve on a year-over-year basis each quarter, driven by 2022 pricing actions to recover inflation and continued supply chain recovery.
Challenges Ahead
- The Company assumes that the macro environment will continue to be net inflationary.
- Net interest expense of $20 to $25 million, which includes interest expense of $65 to $70 million and interest income of approximately $45 million related to the note receivable.
- Capital expenditures of approximately $130 million.
- Year-over-year net sales growth between 9% - 12% driven by pricing actions to recover inflation.
- A 300 - 450 basis point year-over-year improvement in adjusted EBITDA margin from continuing operations.