TreeHouse Foods, a private-label food manufacturer, has adjusted its sales guidance for 2023 due to various factors. The company recently sold its snack-bars business to John B. Sanfilippo & Son for $63 million, which has impacted its sales projections. Additionally, TreeHouse has experienced a voluntary product recall, a supply chain disruption, and weakening consumer demand trends.
Accordingly, TreeHouse now expects its sales, adjusted for the divestiture of its snack-bars business, to increase by approximately 4.5% at the midpoint. The new sales range is projected to be between $3.435 billion and $3.465 billion. This is a departure from their previous guidance, where net sales were anticipated to rise between 7.5% and 9.5%, reaching $3.71 billion to $3.78 billion.
The revised sales guidance takes into account the impact of the divestiture, along with other challenges faced by the company. Despite these adjustments, TreeHouse remains optimistic about its adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA). They expect EBITDA to range between $360 million and $370 million, representing a 25% increase at the midpoint compared to the previous year.
TreeHouse Foods continues to navigate through these changes and adapt to the evolving market conditions in order to maintain its position as a leading player in the food industry.