TreeHouse Foods reported results for the third quarter ended September 30, 2022.
Article continues below
Net sales increased 16.4% to $875.0 million, primarily driven by pricing.
Net loss from continuing operations was $(15.1) million.
Adjusted EBITDA margin1 was 8.8%, and adjusted EBITDA1 totaled $76.6 million.
TreeHouse issued Q4 2022 guidance of 22% - 24% net sales growth year-over-year, and adjusted EBITDA margin from continuing operations3 of 10.5% - 12.0%.
"I'm proud of how we have successfully reshaped our business. Today we have greater strategic focus on accelerating our growth, improving operational efficiency and enhancing the value we deliver to our customers and consumers - all reflected in our recently unveiled statement of corporate purpose: to engage and delight - one customer at a time," said Steve Oakland, Chief Executive Officer and President.
"The successful divestiture of a significant portion of our Meal Preparation assets positions us well to execute on our strategy: to capitalize on strong consumer demand trends in order to accelerate growth across our higher-margin private label snacking and beverage categories while driving long-term shareholder value."
"In the third quarter, we delivered solid sequential improvement across both revenue and profitability, reflecting the progress we are making to mitigate the disruption resulting from the challenging macro environment," Mr. Oakland continued.
"I'm confident that our portfolio of private label snacking and beverage products is poised to benefit from increasing consumer demand for snacking and beverages as well as broader trends driving private label demand."
"Completing the transaction marked a significant step forward in our efforts to simplify our business, improve operational execution and accelerate growth. We have reduced debt by $500 million and meaningfully strengthened our balance sheet, positioning us to continue investing in our business and customer relationships," said Patrick O'Donnell, Interim Chief Financial Officer and Chief Accounting Officer.
"We continued to improve execution and profitability in a challenging environment, and we expect this momentum to build in the fourth quarter as we reach our seasonal peaks, capture further impact of pricing to recover inflation and deliver on our cost savings initiatives." ■