NYSE$THS

TreeHouse Foods Inc. · Q2 2024 earnings

Q2 2024 earnings · · Investor relations

Briefing

Second quarter performance improved with net sales trends and profit exceeding guidance, driven by progress in converting sales opportunities and supply chain execution.

TreeHouse Foods reported Q2 2024 results with net sales of $788.5 million and an adjusted EBITDA of $70.6 million, exceeding the company's guidance. The company reaffirmed its 2024 net sales and free cash flow outlook while narrowing its adjusted EBITDA range.

  • Net sales reached $788.5 million, surpassing the midpoint of the guidance range.
  • Adjusted EBITDA was $70.6 million, exceeding the company's guidance range.
  • The company repurchased approximately $45 million of its shares during the quarter.
  • Full year outlook reaffirmed for net sales of $3.43 to $3.50 billion and free cash flow of at least $130 million; adjusted EBITDA outlook narrowed to $360 to $380 million.

Headline financials

Total Revenue

$789M

Previous: $844M-6.5%
EPS

-$0.32

Previous: $0.42-176.2%
Adjusted Net Sales

$790M

No prior period
Adjusted EBITDAs

$70.6M

No prior period
Gross Profit Percentage

16.3%

No prior period
Adjusted Gross Profit Percentage

17.2%

No prior period
Adjusted EBITDA Margin

8.9%

No prior period
Capital Expenditures

-$22.8M

Previous: -$52.6M+56.7%
Net Income

-$16.7M

Previous: $23.3M-171.7%
Operating Income

-$4M

Previous: $29.5M-113.6%
Gross Profit

$128M

Previous: $133M-3.4%
Cash & Equivalents

$106M

Previous: $16.9M+526.0%
Total Assets

$3.91B

Previous: $4.38B-10.9%
Stock-Based Comp

$5.3M

Previous: $5.9M-10.2%

Revenue & EPS history

TreeHouse · Revenue · Quarterly

$789M

Q2 2024-6.5%vs Q2 2023
Beat estimate in 8 of 16 quarters(50%)
ActualEstimate

Forward guidance

TreeHouse Foods updated its full year 2024 guidance. The company continues to expect net sales in the range of $3.43 to $3.50 billion, which represents approximately 0% to 2% year-over-year growth. The company is narrowing its expectations for Adjusted EBITDA to a range of $360 to $380 million and continues to expect free cash flow of at least $130 million.

Tailwinds

  • Net sales improvement due to new distribution wins that largely begin in the third quarter.
  • Cost savings initiatives provide greatest impact beginning in third and fourth quarters.
  • Our return to normalized service levels in our Broth business ahead of the upcoming peak season.
  • Incremental pricing actions to recover recent commodity inflation related to cocoa.
  • Third quarter net sales are expected in a range of $865 to $895 million, which represents approximately flat to 4% growth year-over-year.

Headwinds

  • The company is narrowing its expectations for Adjusted EBITDA to a range of $360 to $380 million. This reflects our first half performance and our assumption that some consumer-driven mix trends continue during the second half of the year.
  • Net interest expense is continued to be expected in the range of $56 to $62 million.
  • The Company continues to expect capital expenditures of approximately $145 million.
  • Third quarter Adjusted EBITDA from continuing operations is expected in a range of $98 to $108 million, which reflects a timing shift as a result of favorable freight costs moving into the second quarter from the third quarter.
  • Company incurred $19.3 million of non-cash impairment charges related to property, plant, and equipment.

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 2024

Historical avgQ2 2024

-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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