TreeHouse Foods, Inc. has reported its fourth-quarter and full-year 2023 results, showcasing a strong performance with significant improvements in various financial metrics. The company reported a 4.1% increase in net sales, reaching $3,431.6 million, a 4.1% increase compared to the prior year, and net income from continuing operations of $59.0 million, marking a $68.2 million increase from the previous year. Additionally, adjusted EBITDA stood at $365.9 million, reflecting a $74.2 million increase compared to the prior year.
Steve Oakland, Chairman, Chief Executive Officer, and President of TreeHouse Foods, Inc., emphasized the company's progress in 2023 and its focus on higher-growth, higher-margin categories, supply chain capabilities, and service level enhancements. He credited the dedication and diligence of the entire TreeHouse team for the company's success.
Looking ahead to 2024, Oakland expressed confidence in the company's positioning amidst a challenging consumer environment in the food and beverage industry. He highlighted the strength of the private brands market, which saw unit share reach an all-time high of over 20% within their categories during the fourth quarter.
Oakland addressed the company's outlook for 2024, stating, "We expect these opportunities should contribute significant net sales growth in the second half of 2024 and beyond. While we expect our first-half performance to be constrained by our broth business, we believe we've made the appropriate investments to maintain our path to our long-term targets and strengthen our position as a leading private brands food and beverage supplier in North America."
The financial results for the fourth quarter of 2023 revealed a decrease in net sales by 4.8%, primarily driven by volume/mix in the retail business, which was impacted by supply chain disruption at one of the broth facilities and in the pretzels and cookies categories. Gross profit as a percentage of net sales decreased to 16.7% from 18.3% in the fourth quarter of 2022.
TreeHouse Foods, Inc. also provided its outlook for fiscal year 2024, expecting net sales in the range of $3.43 to $3.50 billion, adjusted EBITDA of $360 to $390 million, and free cash flow of at least $130 million. The company anticipates a slight volume and mix benefit from recently completed acquisitions.
The market was unimpressed with these announcements, as the company's shares have experienced a -12.4% decline to a price of $37.45.
The full 8-K submission from TreeHouse Foods, Inc. is available here.
