TreeHouse Foods Q4 Earnings Top Estimates

TreeHouse Foods Inc THS reported a fourth-quarter FY21 sales decline of 1% year-on-year, to $1.17 billion, beating the analyst consensus of $1.12 billion.
The revenue decrease was caused by supply chain disruption, significantly impacting the company's ability to service strengthening demand.
The gross profit for the quarter contracted 470 basis points Y/Y to 14.7%.
The company reported an operating loss of $(19.6) million versus an operating income of $53.8 million last year. The operating expenses rose 9.6% Y/Y to $190.8 million.
Adjusted EPS of $0.11 beat the analyst consensus of $0.09.
The adjusted EBITDA from continuing operations totaled $81.2 million, a 47.3% Y/Y decrease. The Adjusted EBITDA margin was 7%.
The company held $308.6 million in cash and equivalents as of December 31, 2021.
As previously announced, the company's board continues to explore strategic options, including a possible sale of the company.
Outlook: TreeHouse sees FY22 sales growth of at least 11% year-over-year. The company expects FY22 adjusted EBITDA of $385 million - $415 million.
Price Action: THS shares closed higher by 1.38% at $35.28 on Friday.

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