TreeHouse Foods Backs Q2 Outlook, Updates FY23 Adj. EBITDA View

(RTTNews) - TreeHouse Foods, Inc. (THS) Tuesday confirmed its forecast for second quarter, as well as fiscal 2023 revenue view. Further, the company updated outlook for full-year adjusted EBITDA.

For the second quarter of 2023, TreeHouse continues to anticipate revenues between $810 million and $840 million, representing flat to 4 percent growth versus the prior year.

On average, five analysts polled by Thomson Reuters expect the company to report revenues of $828.51 million for the quarter. Analysts' estimates typically exclude special items.

Adjusted EBITDA is still expected in a range of $65 million to $80 million. For the quarter, adjusted EBITDA margin is projected to be between 7.9 percent to 9.4 percent, representing a 130 to 280 basis point improvement from the prior year.

Revenue for the first half of the year would be between $1.705 billion and $1.735 billion, which represents growth of 7.7 percent to 9.6 percent.

Further, for fiscal 2023, the company continues to project revenues between $3.66 billion and $3.73 billion, with a sales growth of 6 to 8 percent. Analysts expect revenues of $3.7 billion for the year.

Adjusted EBITDA is now expected between $355 million and $370 million, up approximately 26 percent year-over-year at the midpoint. The previous outlook for adjusted EBITDA was in the range of $345 million to $365 million.

Further, TreeHouse has set annual growth targets for 2024 through 2027, including 3-5 percent revenue growth, 8-10 percent Adjusted EBITDA growth, and $200+ million of free cash flow.

TreeHouse Foods will host its 2023 Investor Day.