Highlights Company's Focused Portfolio and
Operating Model, Winning Capabilities and Depth, and Clear Pathway
to Achieve Annual Growth Targets from 2024 through
2027
Reaffirms Second Quarter Guidance; Raises and
Narrows Fiscal Year 2023 Adjusted EBITDA1 Guidance to
$355 Million to $370 Million
OAK
BROOK, Ill., June 13,
2023 /PRNewswire/ -- TreeHouse Foods, Inc. (NYSE:THS)
today will host its 2023 Investor Day and provide an in-depth
review of the Company's strategy for growth and value creation
following its successful transformation into a focused category
leader well positioned at the intersection of private brand and
snacking and beverage trends.
"TreeHouse is a private brand powerhouse in snacking and
beverages with a long runway for growth and value creation," said
Steve Oakland, Chairman, Chief
Executive Officer, and President. "Having repositioned the company,
TreeHouse today is a stronger, more focused business, and we are
building depth and leadership in high-growth, high-margin
categories, while delivering improved execution and consistency.
The significant progress our team is making represents our strategy
in action, and we could not be more excited by the tremendous
opportunity ahead. We are pleased with our start to 2023 and are
confident in our ability to achieve our annual growth targets and
create value for our shareholders."
At today's event, the TreeHouse management team will provide
insights into the annual growth targets it has set for 2024 through
2027, including:
- 3-5% revenue growth
- 8-10% Adjusted EBITDA growth
- $200+ million of free cash flow1
The Company sees a clear pathway to achieve its growth algorithm
by:
- Driving category leadership and depth in high appeal
categories, building winning capabilities and delivering on a
robust growth pipeline;
- Deepening strategic customer relationships by delivering
on North America's biggest and
best food and beverage retailers' private brand priorities and
driving mutually profitable growth;
- Becoming a talent leader by operating as a more focused,
platform driven organization which empowers its team members;
- Building a world class supply chain which is a key
competitive advantage as the Company targets over $250 million of cost savings through 2024 to 2027
and efficiently deploys capital to support supply chain
optimization and growth; and
- Executing on its disciplined capital allocation approach
anchored around investment in the business to drive organic growth
and build capabilities and depth, while maintaining the Company's
strong balance sheet and opportunistically returning capital to
shareholders.
OUTLOOK
In addition, today TreeHouse reaffirmed its previously-issued
second quarter guidance and raised and narrowed its adjusted EBITDA
guidance for fiscal year 2023.
For the second quarter of 2023, TreeHouse continues to
anticipate:
- Revenue in the range of $810 to
$840 million, representing flat to 4%
growth versus the prior year;
- Adjusted EBITDA of $65 to
$80 million;
- Adjusted EBITDA margin1 between 7.9% to 9.4%,
representing a 130 to 280 basis point improvement versus the second
quarter of 2022; and,
- Revenue for the first half of the year between $1.705 billion and $1.735
billion, which represents growth of 7.7% to 9.6%.
With regard to the full year, TreeHouse anticipates:
- Net sales growth of 6% to 8% year-over-year, which represents a
range of $3.66 to $3.73 billion; and
- Adjusted EBITDA of $355 to
$370 million, up approximately 26%
year-over-year at the midpoint.
________________________________________________
|
1 Adjusted
EBITDA, Adjusted EBITDA margin, and Free Cash Flow from continuing
operations are non-GAAP financial measures. See "Non-GAAP Financial
Measures" for the definitions of the Non-GAAP measures and
information concerning certain items affecting comparability. The
Company is not able to reconcile prospective adjusted EBITDA from
continuing operations or adjusted EBITDA margin from continuing
operations, which are Non-GAAP financial measures, to the most
comparable GAAP financial measures without unreasonable effort due
to the inherent uncertainty and difficulty of predicting the
occurrence, financial impact, and timing of certain items impacting
GAAP results. These items include, but are not limited to,
mark-to-market adjustments of derivative contracts, foreign
currency exchange on the re-measurement of intercompany notes, or
other non-recurring events or transactions that may significantly
affect reported GAAP results.
|
MEETING WEBCAST
Today's Investor Day presentation will be conducted both
in-person and virtually beginning at 9:00
a.m. ET. Please log on at least 10 minutes in advance of the
meeting to complete registration and receive an access link. A
recording of the event, as well as conference materials, will be
available on the Company's investor relations website
https://www.treehousefoods.com/investors/.
NON-GAAP FINANCIAL MEASURES
Adjusted EBITDA, Adjusted EBITDA Margin, Free Cash Flow from
continuing operations are non-GAAP financial measures. For
definitions of these non-GAAP financial measures and how the
Company uses them to evaluate performance, as well as why the
Company is not able to reconcile these forward-looking measures to
their most directly comparable GAAP financial measures, please
refer to "Definitions of the Company's Non-GAAP Financial Measures"
and "Comparison of Adjusted Information to GAAP Information" in
Exhibit 99.1 to the Company's Form 8-K furnished with the SEC on
May 8, 2023.
Additional information, including TreeHouse's most recent
statements on forms 10-Q and 10-K, may be found at
treehousefoods.com.
ABOUT TREEHOUSE FOODS
TreeHouse Foods, Inc. is a leading private label food and
beverage manufacturer in North
America. Our purpose is to engage and delight – one customer
at a time. Through our customer focus and category experience, we
strive to deliver excellent service and build capabilities and
insights to drive mutually profitable growth for TreeHouse and our
customers. Our purpose is supported by investment in depth,
capabilities and operational efficiencies, which are aimed to
capitalize on the long-term growth prospects in the categories in
which we operate.
FORWARD-LOOKING STATEMENTS
This press release contains "forward-looking" statements within
the meaning of the Private Securities Litigation Reform Act of
1995. These forward-looking statements and other information are
based on our beliefs, as well as assumptions made by us, using
information currently available. The words "believe," "estimate,"
"project," "expect," "anticipate," "plan," "intend," "foresee,"
"should," "would," "could," and similar expressions, as they relate
to us, are intended to identify forward-looking statements. Such
statements reflect our current views with respect to future events
and are subject to certain risks, uncertainties, and assumptions.
Should one or more of these risks or uncertainties materialize, or
should underlying assumptions prove incorrect, actual results may
vary materially from those described herein as anticipated,
believed, estimated, expected, or intended. We do not intend to
update these forward-looking statements following the date of this
press release.
Such forward-looking statements, because they relate to future
events, are by their very nature subject to many important factors
that could cause actual results to differ materially from those
contemplated by the forward-looking statements contained in this
press release and other public statements we make. Such factors
include, but are not limited to: risks related to the impact that
the divestiture of a significant portion of our Meal Preparation
Business or any such divestiture might have on the Company's
operations; disruptions or inefficiencies in our supply chain
and/or operations; loss of key suppliers; raw material and
commodity costs due to inflation; labor strikes or work stoppages;
multiemployer pension plans; labor shortages and increased
competition for labor; success of our growth, reinvestment, and
restructuring programs; our level of indebtedness and related
obligations; disruptions in the financial markets; interest rates;
changes in foreign currency exchange rates; collectability of our
note receivable, customer concentration and consolidation;
competition; our ability to execute on our business strategy; our
ability to continue to make acquisitions and execute on
divestitures or effectively manage the growth from acquisitions;
impairment of goodwill or long lived assets; changes and
developments affecting our industry, including customer
preferences; the outcome of litigation and regulatory proceedings
to which we may be a party; product recalls; changes in laws and
regulations applicable to us; shareholder activism; disruptions in
or failures of our information technology systems; changes in
weather conditions, climate changes, and natural disasters; and
other risks that are set forth in the Risk Factors section, the
Legal Proceedings section, the Management's Discussion and Analysis
of Financial Condition and Results of Operations section, and other
sections of our Quarterly Report on Form 10-Q for the three months
ended March 31, 2023, our Annual
Report on Form 10-K for the year ended December 31, 2022, and from time to time in our
filings with the Securities and Exchange Commission ("SEC"). You
are cautioned not to unduly rely on such forward-looking
statements, which speak only as of the date made when evaluating
the information presented in this press release. TreeHouse
expressly disclaims any obligation or undertaking to disseminate
any updates or revisions to any forward-looking statement contained
herein, to reflect any change in its expectations with regard
thereto, or any other change in events, conditions or circumstances
on which any statement is based.
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SOURCE TreeHouse Foods, Inc.