TreeHouse's Net Sales Increase in Q2

Private label food and beverage manufacturer TreeHouse Foods has shared its Q2 2023 financial results, in which net sales increased 4.1% year-over-year (YoY).

For the period ended June 30, totaled $843.6 million, an increase of $33.4 million compared to $810.2 million for the same period last year. The company said this was primarily driven by favorable pricing to recover commodity inflation.

Gross profit as a percentage of net sales was 15.7% in the second quarter of 2023, compared to 13.7% in the second quarter of 2022, an increase of 2.0 percentage points. Net income from continuing operations of $21.7 million compares to net loss from continuing operations of $(27.3) million in the prior year. TreeHouse Foods’ adjusted EBITDA from continuing operations of $76.4 million was at the high-end of the company's guidance range and increased by $23.3 million versus the prior year.

"The transformative actions that we've taken have more strongly positioned TreeHouse in higher-growth, higher-margin categories and are reflected in our second quarter and first half results," said Steve Oakland, chairman, CEO and president of the company. "We continue to leverage our position as a private brand powerhouse in snacking and beverages and remain focused on improved execution, which enabled us to deliver better-than-expected net sales and a nearly 44% increase in adjusted EBITDA from continuing operations, which was at the high end of our guidance. Looking forward, we expect to continue to benefit from our more focused portfolio, higher service levels and our strategic investments in capabilities, including our recently completed coffee acquisition.”

Looking ahead, TreeHouse raised its full year net sales outlook to 7.5% to 9.5% year-over-year growth, primarily reflecting the impact of its recent coffee facility acquisition. TreeHouse expects third quarter revenue in the range of $950 to $970 million, representing approximately 10% year-over-year growth.

“With favorable industry trends and a clear strategy, we are confident in achieving our near- and long-term financial goals and see a long runway for continued growth and value creation,” added Oakland.