TreeHouse Foods Posts Mixed Q4 Earnings; Warns On Inflationary Macro Environment

TreeHouse Foods Inc THS reported fourth-quarter FY22 sales growth of 22% year-on-year to $996.20 million, missing the consensus of $1.02 billion.
The revenue increase was primarily driven by favorable pricing to recover commodity inflation.
Gross margin for the quarter expanded 280 basis points Y/Y to 17.7%.
The company reported an operating income of $70 million with an operating margin of 7%.
The operating expenses fell 28.4% Y/Y to $105.9 million.
Adjusted EPS of $0.98 beat the analyst consensus of $0.92.
Adjusted EBITDA from continuing operations totaled $120 million, and the margin was 12%.
The company held $43 million in cash and equivalents as of Dec. 31, 2022.
Outlook: TreeHouse sees FY23 sales growth of 6% - 8%. The company expects FY23 adjusted EBITDA of $345 million - $365 million and capital expenditure of $130 million.
TreeHouse anticipates Q1 net sales growth of 9% - 12% driven by pricing actions to recover inflation and a 300 - 450 basis point year-over-year improvement in adjusted EBITDA margin from continuing operations.
In addition, TreeHouse introduced the following annual growth targets expected over 3+ years beginning in 2024, with net sales growth of 3% - 5%.
Price Action: THS shares are trading lower by 7.23% at $44.83 on the last check Monday.

Momentum13.35

Growth7.55

Quality10.61

Value24.87

Short

Medium

Long

Earnings Calendar