TreeHouse Foods Reveals Third Quarter 2022 Results; Steve Oakland Comments

TreeHouse Foods has been high on our radar since it announced a pivotal, strategic sale early last month. Now, we’ve been given more insight into the provider’s operations as it has reported results for the third quarter that ended September 30, 2022, announcing it reached $875 million in net sales.

"I'm proud of how we have successfully reshaped our business. Today we have greater strategic focus on accelerating our growth, improving operational efficiency, and enhancing the value we deliver to our customers and consumers—all reflected in our recently unveiled statement of corporate purpose: to engage and delight - one customer at a time," said Steve Oakland, Chief Executive Officer and President. "The successful divestiture of a significant portion of our Meal Preparation assets positions us well to execute on our strategy: to capitalize on strong consumer demand trends in order to accelerate growth across our higher-margin private label snacking and beverage categories while driving long-term shareholder value."

In a recent press release, TreeHouse Foods revealed its third quarter highlights following the recent divestiture of its Meal Preparation business. Some of the key highlights include:

• Net sales increased 16.4 percent to $875.0 million, primarily driven by pricing
• Adjusted EBITDA margin was 8.8 percent, and adjusted EBITDA totaled $76.6 million
• TreeHouse issued Q4 2022 guidance of 22–24 percent net sales growth year-over-year, and adjusted EBITDA margin from continuing operations of 10.5–12 percent

"In the third quarter, we delivered solid sequential improvement across both revenue and profitability, reflecting the progress we are making to mitigate the disruption resulting from the challenging macro environment," Oakland continued. "I'm confident that our portfolio of private label snacking and beverage products is poised to benefit from increasing consumer demand for snacking and beverages as well as broader trends driving private label demand."

As a result of this group, TreeHouse issued the following guidance for Q4 2022:

• Net sales are expected to grow 22–24 percent year-over-year, primarily driven by pricing
• Adjusted EBITDA is expected to be between $105 to $120 million

The company also noted that, while the industry-wide labor and supply chain environment may continue to pose challenges, it is making steady improvement which is expected to continue into 2023.

Click here for more details on the company’s Q3 performance.

And stick with DMN for more industry updates!