The revenue increase was primarily driven by favorable pricing to partially recover commodity and freight cost inflation and increased volume within the Snacking & Beverages segment due to growing demand for private labels.
The gross profit for the quarter contracted 310 basis points Y/Y to 13.5%.
The company reported an operating loss of $(21.7) million versus a $4.1 million profit last year. The operating expenses rose 13.3% Y/Y to $183.6 million.
Adjusted EPS loss of $(0.04) beat the analyst consensus of $(0.13).
The adjusted EBITDA from continuing operations totaled $66.5 million, a 28.2% Y/Y decrease. The Adjusted EBITDA margin was 5.6%.
The company held $199.1 million in cash and equivalents as of June 30, 2022.
Outlook: TreeHouse raised sales growth to mid-to-high teens (prior view for growth of at least 11%), primarily driven by pricing actions to recover inflation. The company expects FY22 adjusted EBITDA of $385 million - $415 million.
Price Action: THS shares are trading higher by 5.72% at $45.12 on the last check Monday.
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