TreeHouse Q4 Sales Grow

Higher prices were cited as a key driver of growth with the company's chief executive saying demand for private label products remains strong.
Greg Sleter
Associate Publisher/Executive Editor
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TreeHouse Foods closed out its fiscal year 2022 with double-digit growth in the fourth quarter as company officials said they are bullish on future growth opportunities for private label products in the snacking and beverages segment.

For the fourth quarter ended Dec. 31, net sales were up 22% to $996.2 million with the growth driven by favorable pricing to recover commodity inflation. Net income for the quarter was $40.1 million compared to a net loss of $30.8 million in the comparable quarter the previous year.

For the full year ended Dec. 31, the company reported net sales of $3.454 billion, up from net sales of $2.946 billion in the prior fiscal year. Net loss for the year was $146.3 million compared to a net loss of $12.5 million in the prior fiscal year. 

With TreeHouse having closed the books on 2022, a year that included the sale of its Meal Preparation business, its president and CEO Steve Oakland feels the company is better positioned to capitalize on the strong market dynamics in private label snacking and beverages. 

“The macro environment continues to support a clear consumer shift toward value, as demonstrated by private label unit share gains for 54 consecutive weeks in the categories in which we operate,” he said. “Importantly, in the fourth quarter, we outperformed the broader private label market in retail measured channels by more than 300 basis points, demonstrating the significant efforts our teams are putting forth to improve service and deliver for our customers."

Near-term, Oakland said the company’s priorities are increasing service levels and mitigating supply chain disruption to allow TreeHouse better capture the demand for its products. 

“Our purpose - to engage and delight, one customer at a time - is supported by our work to refine our enterprise strategy around four key pillars: world class supply chain; category leadership; strategic customer partnerships; and talent leader,” he said. “We are energized and excited about our future as a private label snacking and beverages leader, and it is reflected in our strong outlook for 2023."

For the year ahead, the company is forecasting net sales growth of between 6% and 8%, driven by pricing. Volume is expected to be flat for the full year as TreeHouse continues to mitigate supply chain disruptions and improve service.