THS - TreeHouse Foods reports Q2 earnings; initiates Q3 and raises FY23 outlook

August, 07 2023 06:58 AM Treehouse Foods Inc.

2023-08-07 06:58:37 ET

TreeHouse Foods press release ( NYSE: THS ): Q2 Non-GAAP EPS of $0.42 in-line.
Revenue of $843.6M (+4.1% Y/Y) beats by $11.76M .
Adjusted EBITDA from continuing operations of $76.4 million was at the high-end of the Company's guidance range and increased by $23.3 million versus the prior year.
TreeHouse raised its full year net sales outlook :
Net sales growth is now expected to be 7.5% to 9.5% year-over-year, which represents a range of $3.71 to $3.78 billion vs. consensus of $3.70B.
- The increase primarily reflects the volume from the acquisition of the Northlake, Texas coffee facility that closed in June 2023.
The Company narrowed its adjusted EBITDA range to $360 to $370 million, up approximately 27% year-over-year at the midpoint.
Net interest expense is now expected to be $27 million to $32 million, due to increased usage of the Revolving Credit Facility to fund the aforementioned coffee acquisition and investment in inventory to service customers.

With regard to the cadence for the remainder of the year:

TreeHouse expects third quarter revenue in the range of $950 to $970 million vs. consensus of $930.05M, representing approximately 10% year-over-year growth at the midpoint, primarily driven by volume/mix, including the volume from the coffee acquisition.
The Company anticipates third quarter adjusted EBITDA in the range of $81 to $89 million, representing approximately 11% year-over-year growth at the midpoint.
Full year adjusted EBITDA guidance reflects the following expectations for the fourth quarter:
- Sequential and year-over-year improvement in gross margin primarily driven by TMOS and supply chain savings initiatives.
- Approximately $5 million to $7 million in temporary operating expenses in the fourth quarter resulting from the expected wind down of substantial portions of the transition services agreement related to the Meal Preparation divestiture.

For further details see: