TreeHouse Foods, Inc. has reported its financial results for the second quarter of 2024, showcasing a mixed performance in various areas. The company's net sales for the second quarter of 2024 totaled $788.5 million, which was slightly above the mid-point of its guidance range of $770 to $800 million. However, this figure represents a decrease of $15.0 million, or 1.9%, compared to the same period last year.
The decrease in net sales is primarily attributed to targeted commodity-driven pricing adjustments and unfavorable volume/mix related to planned distribution exits in the coffee and in-store bakery categories, as well as the restoration of one of the broth facilities. Although the net sales trend improved sequentially, it still experienced a decline.
Gross profit as a percentage of net sales was 16.3% in the second quarter of 2024, a slight decrease from 16.6% in the second quarter of 2023. Conversely, adjusted gross profit as a percentage of net sales increased to 17.2% in the second quarter of 2024 from 16.6% in the second quarter of 2023, primarily due to the execution of supply chain initiatives.
The company's total operating expenses increased to $132.3 million in the second quarter of 2024 from $102.9 million in the second quarter of 2023, primarily driven by a non-cash impairment charge of $19.3 million in the ready-to-drink beverages business and increased personnel and capability investments.
In terms of profitability, TreeHouse Foods, Inc. reported a net loss from continuing operations of $16.7 million for the second quarter of 2024, compared to a net income from continuing operations of $22.4 million for the same period in the previous year. Adjusted EBITDA for the second quarter of 2024 was $70.6 million, exceeding the company's guidance range of $55 to $65 million, but lower than the $76.3 million reported in the second quarter of 2023.
The company also repurchased approximately $45 million of its shares during the quarter and reaffirmed its 2024 outlook for net sales of $3.43 to $3.50 billion and free cash flow of at least $130 million, while narrowing its adjusted EBITDA outlook to a range of $360 to $380 million.
Looking ahead, the company expects third quarter net sales in the range of $865 to $895 million, representing approximately flat to 4% growth year-over-year, with adjusted EBITDA from continuing operations expected in a range of $98 to $108 million.
Today the company's shares have moved -0.1% to a price of $39.31. For more information, read the company's full 8-K submission here.
