TreeHouse Foods, Inc. Reports Second Quarter 2024 Results

Core Viewpoint - TreeHouse Foods, Inc. reported a net sales of $788.5 million for Q2 2024, exceeding the guidance range, while reaffirming its 2024 net sales outlook and narrowing its adjusted EBITDA range [2][4]. Financial Performance - Net sales decreased by 1.9% compared to the same period last year, primarily due to commodity-driven pricing adjustments and unfavorable volume/mix related to planned distribution exits [3]. - Adjusted EBITDA for Q2 2024 was $70.6 million, exceeding the guidance range of $55 to $65 million, although it decreased from $76.3 million in Q2 2023 [2][3][21]. - The net loss from continuing operations was $(16.7) million, compared to a net income of $22.4 million in the same quarter last year [3][21]. Operational Highlights - The company repurchased approximately $45 million of its shares during the quarter, indicating a commitment to returning value to shareholders [2]. - The gross profit margin was 16.3% in Q2 2024, slightly down from 16.6% in Q2 2023, while adjusted gross profit margin increased to 17.2% [3][21]. - Total operating expenses rose to $132.3 million, up from $102.9 million in the previous year, largely due to a non-cash impairment charge of $19.3 million [3][21]. Outlook - TreeHouse expects 2024 net sales in the range of $3.43 to $3.50 billion, reflecting approximately 0% to 2% year-over-year growth [4]. - The adjusted EBITDA outlook has been narrowed to a range of $360 to $380 million, with expectations for sequential improvement in the second half of the year [5]. - For Q3 2024, net sales are anticipated to be between $865 to $895 million, representing flat to 4% growth year-over-year [5].