NYSE$THS

TreeHouse Foods Inc. · Q4 2022 earnings

Q4 2022 earnings · · Investor relations

Briefing

Reported net sales growth of 22% and sequential improvement in profitability.

TreeHouse Foods reported a strong Q4 2022 with net sales increasing by 22.0% to $996.2 million, driven by pricing actions to recover inflation. Net income from continuing operations was $40.1 million, representing a 4.0% margin. Adjusted EBITDA from continuing operations was $120.0 million, representing a 12.0% margin.

  • Net sales increased 22.0% year-over-year to $996.2 million, primarily driven by pricing actions.
  • Net income from continuing operations was $40.1 million, representing a 4.0% margin.
  • Adjusted EBITDA from continuing operations was $120.0 million, representing a 12.0% margin.
  • The company anticipates FY23 net sales growth of 6% - 8% and adjusted EBITDA between $345 to $365 million.

Headline financials

Total Revenue

$996M

Previous: $1.17B-14.6%
EPS (adj)

$0.98

Previous: $0.11+790.9%
Capital Expenditures

$32M

Previous: $21.1M+51.7%
Free Cash Flow

-$68.6M

Previous: $250M-127.5%
Net Income

$40.1M

Previous: -$29M+238.3%
Operating Income

$70M

Previous: -$19.6M+457.1%
Gross Profit

$176M

Previous: $171M+2.7%
Cash & Equivalents

$43M

Previous: $309M-86.1%
Total Assets

$4.25B

Previous: $5.21B-18.3%
Stock-Based Comp

$4.7M

Previous: $4.5M+4.4%

Revenue & EPS history

TreeHouse · Revenue · Quarterly

$996M

Q4 2022-14.6%vs Q4 2021
Beat estimate in 8 of 16 quarters(50%)
ActualEstimate

Forward guidance

TreeHouse issued the following outlook and guidance for fiscal year 2023: Net sales growth of 6% - 8% year-over-year, driven by pricing. Adjusted EBITDA from continuing operations of $345 to $365 million, up approximately 24% year-over-year at the midpoint.

Tailwinds

  • Net sales growth of 6% - 8% year-over-year, driven by pricing.
  • Year-over-year pricing contribution is expected to be most impactful in the first half of the year.
  • Volume is assumed to be flat for the full year, as the Company continues to mitigate supply chain disruption and improve service.
  • Adjusted EBITDA from continuing operations of $345 to $365 million, up approximately 24% year-over-year at the midpoint.
  • EBITDA margins are expected to improve on a year-over-year basis each quarter, driven by 2022 pricing actions to recover inflation and continued supply chain recovery.

Headwinds

  • The Company assumes that the macro environment will continue to be net inflationary.
  • Net interest expense of $20 to $25 million, which includes interest expense of $65 to $70 million and interest income of approximately $45 million related to the note receivable.
  • Capital expenditures of approximately $130 million.
  • Year-over-year net sales growth between 9% - 12% driven by pricing actions to recover inflation.
  • A 300 - 450 basis point year-over-year improvement in adjusted EBITDA margin from continuing operations.

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 Q4 2022

Historical avgQ4 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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