TreeHouse Foods Inc NYSE THS Q2 2024 Earnings Summary
Intellectia.AI Updated: 2024-08-06
TreeHouse Foods, Inc. (NYSE: THS) Q2 2024 Earnings Summary
Overview TreeHouse Foods, Inc. (NYSE: THS) reported its second-quarter financial results for the period ending Q2 2024.
Key Financial Metrics
| Metric | Q2 2024 | Q2 2023 | YoY Change | Consensus Estimates |
|---|---|---|---|---|
| Total Revenue | $789M | $804M | -1.9% | $783.65M |
| Adjusted EBITDA | $71M | - | - | - |
Interpretation: TreeHouse Foods reported a slight decline in total revenue compared to the previous year, achieving revenue of $789 million, which surpassed the Wall Street consensus estimate of $783.65 million. Despite the marginal decline, the company's adjusted EBITDA exceeded expectations, driven by improved supply chain execution and favorable freight expenses.
Revenue Performance Across Major Segments
| Segment | Q2 2024 Revenue | Q2 2023 Revenue | Segment Performance & Comparison to Guidance |
|---|---|---|---|
| Broth Facility | - | - | Operations in line with plan; volume growth expected |
| Cookies | - | - | Pipeline wins contribute positively |
| Refrigerated Dough | - | - | Sustained growth with volume wins |
| Pretzels | - | - | New wins enhancing performance |
| Pickles | - | - | Performance bolstered by volume growth |
Interpretation: Segment-wise, TreeHouse Foods exhibited strong performance in areas such as cookies, refrigerated dough, pretzels, and pickles, aligning closely with their strategic investments and pipeline opportunities. The broth facility's operations were confirmed to be on track, supporting anticipated volume growth in the latter half of the year.
Comments from Company Officers
Steve Oakland, Chairman, CEO, and President, emphasized the company's robust performance and confidence heading into the year's second half. Oakland highlighted significant progress in executing supply chain initiatives and securing volume growth opportunities. Patrick O'Donnell, CFO, expressed confidence in improved business momentum and maintained the year-end guidance.
Dividends and Share Repurchase Program
TreeHouse Foods announced the continuation of its share repurchase program, with $45 million repurchased in Q2 2024, bringing the year-to-date total to $89 million.
Forward Guidance
TreeHouse Foods maintains its full-year net sales outlook of flat to 2% year-over-year growth, reiterating a range of $3.43 billion to $3.50 billion. The company also narrowed its adjusted EBITDA guidance to $360 million to $380 million and continues to expect free cash flow of at least $130 million.
Stock Price Movement
Following the earnings release, TreeHouse Foods stock experienced a -2.49% change, reflecting market reactions to the presented financial results and forward guidance.
In summary, TreeHouse Foods, Inc. displayed resilient performance in Q2 2024 with strategic wins across key segments and a positive outlook for continued growth and operational improvements in the second half of the year.
