- TreeHouse Foods Inc THS reported Fourth quarter FY22 revenue growth of 22% year-over-year to $996.20 million, missing the consensus of $1.02 billion.
- The increase in sales was primarily due to favorable pricing to offset commodity inflation.
- Gross margin for the quarter increased 280 basis points Y/Y to 17.7%.
- The company reported operating income of $70 million with an operating margin of 7%.
- Operating expenses fell 28.4% year over year to $105.9 million.
- Adjusted earnings per share of $0.98 beat analyst consensus of $0.92.
- Adjusted EBITDA from continuing operations totaled $120 million and the margin was 12%.
- The Company held $43 million in cash and cash equivalents as of December 31, 2022.
- outlook: TreeHouse sees revenue growth of 6% to 8% for FY23. The Company expects FY23 Adjusted EBITDA to be in the range of $345 million to $365 million and capital expenditures to be in the range of $130 million.
- TreeHouse expects net revenue growth of 9% to 12% in the first quarter, driven by pricing measures to recover from inflation and a 300 to 450 basis point improvement in adjusted EBITDA margin year over year from continuing operations.
- Additionally, TreeHouse introduced the following annual growth targets, which are expected over a 3+ year period beginning in 2024, with net revenue growth of 3% to 5%.
- Price promotion: THS shares are trading down 7.23% at $44.83 on the latest check Monday.
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