NYSE$THS
TreeHouse Foods Inc. · Q3 2022 earnings
Q3 2022 earnings · · Investor relations
Briefing
Reported strong third quarter net sales and sequential improvement in profitability.
TreeHouse Foods reported a net sales increase of 16.4% to $875.0 million for the third quarter of 2022. The company's adjusted EBITDA margin was 8.8%, and adjusted EBITDA totaled $76.6 million.
- Net sales increased by 18.0% to $1,299.4 million.
- Adjusted EBITDA margin for TreeHouse prior to the divestiture exceeded expectations with sequential improvement of 130 basis points to 6.9%, and adjusted EBITDA totaled $89.4 million.
- Net sales increased 16.4% to $875.0 million, primarily driven by pricing.
- Adjusted EBITDA margin was 8.8%, and adjusted EBITDA totaled $76.6 million.
Headline financials
Revenue & EPS history
TreeHouse · Revenue · Quarterly
$875M
Forward guidance
TreeHouse issued the following guidance for Q4 2022: Net sales are expected to grow 22% - 24% year-over-year, primarily driven by pricing. Adjusted EBITDA is expected to be between $105 to $120 million. Adjusted EBITDA margin is anticipated in the range of 10.5% - 12.0%, representing substantial sequential improvement from the 8.8% in the third quarter, driven by the impact of pricing actions taken to date, peak seasonality and cost savings initiatives.
Tailwinds
- Net sales are expected to grow 22% - 24% year-over-year, primarily driven by pricing.
- Adjusted EBITDA is expected to be between $105 to $120 million.
- Adjusted EBITDA margin is anticipated in the range of 10.5% - 12.0%, representing substantial sequential improvement from the 8.8% in the third quarter, driven by the impact of pricing actions taken to date, peak seasonality and cost savings initiatives.
- The Company is making steady improvement around service which it expects to continue into 2023.
- Fiscal year 2023 net sales growth is expected to be strong due to the wraparound impact of TreeHouse's pricing actions to recover inflation in 2022.
Headwinds
- Although the industry-wide labor and supply chain environment will continue to be challenging.
- Given the current economic environment, demand for private label food and beverages is expected to remain strong.
- Net interest in 2023 will reflect TreeHouse's $500 million debt repayment in October 2022, and result in a reduction of approximately $20 million in annual interest expense.
- TreeHouse expects to receive interest income of approximately $40 million in 2023 related to the note receivable issued as part of the transaction.
- Pre-pandemic growth for the Company's current portfolio of categories ranged from 3% to 5%.
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 Q3 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
| Quarter | Report date | Reaction (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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