TreeHouse Foods Q4 Profit Tops Estimates, Net Sales Up 22.0%; Issues Annual Growth Targets

(RTTNews) - TreeHouse Foods, Inc. (THS) reported that its fourth quarter adjusted EPS from continuing operations increased to $0.98 from $0.23, prior year. On average, six analysts polled by Thomson Reuters expected the company to report profit per share of $0.92, for the quarter. Analysts' estimates typically exclude special items. Adjusted EBITDA from continuing operations was $120.0 million in the fourth quarter, compared to $69.8 million, prior year.

Net income from continuing operations was $40.1 million, compared to net loss from continuing operations of $30.8 million, last year. Profit per share from continuing operations was $0.71 compared to a loss of $0.55.

Net sales was $996.2 million compared to $816.3 million last year, an increase of 22.0%. The company said net sales increase of 22.0% was primarily driven by favorable pricing to recover commodity inflation. Analysts on average had estimated $1.02 billion in revenue.

For fiscal 2023, the company expects: net sales growth of 6% - 8%; and adjusted EBITDA between $345 to $365 million, representing year-over-year improvement of 20% to 27%.

For the first quarter, TreeHouse expects year-over-year net sales growth between 9% - 12%, and a 300 - 450 basis point year-over-year improvement in adjusted EBITDA margin from continuing operations.

Over 3+ years beginning in 2024, the company projects: net sales growth of 3% to 5%; adjusted EBITDA growth of 8% to 10%; and annual free cash flow of at least $200 million.

Shares of TreeHouse Foods are up 2% in pre-market trade on Monday.

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