NYSE$THS

TreeHouse Foods Inc. · Q2 2022 earnings

Q2 2022 earnings · · Investor relations

Briefing

Reported strong top-line results, reflecting the impact of pricing and ability to capture incremental volume in Snacking & Beverages.

TreeHouse Foods, Inc. reported a net sales increase of 19.4% compared to Q2 2021, driven by pricing and volume improvements in the Snacking & Beverages division. The company raised its full year 2022 net sales guidance to mid-to-high teens growth, and reaffirmed expectations for adjusted EBITDA in the range of $385 to $415 million.

  • Net sales increased by 19.4% driven by pricing and volume/mix.
  • Net loss from continuing operations was $(30.6) million, a (2.6)% for the second quarter of 2022.
  • Adjusted EBITDA from continuing operations was $66.5 million, which improved by 60 basis points sequentially.
  • Fiscal 2022 net sales guidance raised to mid-to-high teens growth, reaffirming Adjusted EBITDA guidance.

Headline financials

Total Revenue

$1.2B

Previous: $1B+19.4%
EPS (adj)

-$0.04

Previous: $0.26-115.4%
Gross Profit Percentage

13.5%

No prior period
Capital Expenditures

-$62.2M

Previous: -$55.1M-12.9%
Free Cash Flow

-$88.8M

Previous: -$106M+16.1%
Net Income

-$29.4M

Previous: $8.4M-450.0%
Operating Income

-$21.7M

Previous: $4.1M-629.3%
Gross Profit

$162M

Previous: $166M-2.5%
Cash & Equivalents

$199M

Previous: $17.4M+1044.3%
Total Assets

$5.27B

Previous: $5.08B+3.7%
Stock-Based Comp

$6.3M

Previous: $4.5M+40.0%

Revenue & EPS history

TreeHouse · Revenue · Quarterly

$1.2B

Q2 2022+19.4%vs Q2 2021
Beat estimate in 8 of 16 quarters(50%)
ActualEstimate

Forward guidance

TreeHouse updated its guidance for fiscal 2022, raising net sales growth to mid-to-high teens and reaffirming adjusted EBITDA of $385 to $415 million.

Tailwinds

  • Net sales growth raised to mid-to-high teens, primarily driven by pricing actions to recover inflation.
  • Low single digit volume growth is expected.
  • Strengthening private label demand will contribute to sales growth.
  • Adjusted EBITDA of $385 to $415 million reaffirmed, up approximately 5% year-over-year at the midpoint.
  • Expect between 50 and 100 basis points of sequential improvement in adjusted EBITDA margin in the third quarter.

Headwinds

  • Labor and material availability will partially offset private label demand.
  • The cadence of earnings is expected to be weighted toward the second half of the year.
  • Impact of labor and supply chain disruption on profitability and volume is expected to be most prominent in the first half.
  • Labor and supply chain environment will continue to be challenging in the back half of the year.
  • Service levels will remain pressured as the Company's efforts and investment to mitigate disruption are expected to drive gradual progress.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 15 quarterly earnings reports · overlaid with Q2 2022

Historical avgQ2 2022

-1.1%

Avg return

Earnings day

+0.5%

Avg return

5 days after

-1.9%

Avg return

30 days after

43%

29 / 67 earnings

Positive

+23.3%

Q3 2025

Best reaction

-36.5%

Q3 2017

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q4 2025
Q3 2025+23.3%+25.9%+25.4%
Q2 2025-6.5%-3.5%-10.7%
Q1 2025-5.5%-3.5%-6.6%
Q4 2024-0.6%-8.4%-15.2%
Q3 2024-15.1%-12.9%-8.5%
Q2 2024-5.1%+0.4%+5.1%
Q1 2024-4.7%-5.2%-0.9%
Q4 2023-14.2%-14.1%-14.1%
Q3 2023-9.0%-8.8%-2.8%
Q2 2023-9.9%-8.9%-14.0%
Q1 2023-1.4%-4.1%-10.4%
Q4 2022-1.4%+1.1%-2.1%
Q3 2022-2.5%-2.6%-2.1%
Q2 2022+8.0%+11.4%+3.5%
Q1 2022+22.7%+27.0%+28.1%
Q4 2021+15.4%+14.8%-5.6%
Q3 2021+3.9%
Q2 2021-6.3%
Q1 2021+0.8%
Q4 2020-2.5%
Q3 2020-6.0%
Q2 2020-4.6%
Q1 2020+5.2%
Q4 2019-0.7%
Q3 2019-11.0%
Q2 2019-3.8%
Q1 2019-13.0%
Q4 2018+0.0%
Q3 2018-1.9%
Q2 2018+8.6%
Q1 2018+20.6%
Q4 2017-11.0%
Q3 2017-36.5%
Q2 2017-11.6%
Q1 2017-12.1%
Q4 2016+12.1%
Q3 2016-20.5%
Q2 2016-1.5%
Q1 2016+8.1%
Q4 2015+2.4%
Q3 2015+1.3%
Q2 2015-3.0%
Q1 2015-10.4%
Q4 2014-9.8%
Q3 2014-5.8%
Q2 2014+3.1%
Q1 2014-4.0%
Q4 2013+10.7%
Q3 2013-2.1%
Q2 2013+4.0%
Q1 2013-0.0%
Q4 2012+11.0%
Q3 2012-1.8%
Q2 2012-12.7%
Q1 2012+0.1%
Q4 2008+2.1%
Q4 2011+2.1%
Q3 2011-1.7%
Q2 2011+2.8%
Q1 2010+0.7%
Q1 2011+2.2%
Q4 2010-0.5%
Q3 2009+5.9%
Q3 2010+5.9%
Q4 2009+4.4%
Q2 2009+4.4%
Q2 2010+4.4%

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