Core Insights - The discussion highlights the challenges faced by the consumer market over the past few years, particularly regarding the performance of private label brands compared to branded peers [1] - There is a question regarding the timing for private label brands to gain more market share, indicating a need for analysis on consumer behavior and value propositions [2] Group 1 - The consumer environment has been challenging, yet private label brands have not captured as much market share as expected [1] - There is uncertainty about when private label brands will significantly impact the market, prompting inquiries into consumer trading behavior [2] - The value proposition of private label brands is being compared to historical performance, suggesting a need for evaluation of current market conditions [2]

Financial Data and Key Metrics Changes - The grocery consumer industry is experiencing a soft environment, with general consumption down and private label growth being flat across various categories [4][6] - The company has focused on driving cost efficiencies and expects to achieve $250 million in gross cost savings [28][30] - EBITDA growth is anticipated to continue into the next couple of years despite a challenging consumer environment [31][33] Business Line Data and Key Metrics Changes - The company has made significant investments in core categories such as crackers, broth, and refrigerated dough, which are performing well [13][14] - The acquisition of Harris Teas is expected to provide a 4% to 5% benefit to sales, offsetting some volume declines from other categories [42][44] Market Data and Key Metrics Changes - The private label market has not seen significant trading down, with consumers managing costs by reducing basket sizes rather than switching to private label products [5][6] - Retailers are increasingly focused on optimizing their private label assortments and pricing strategies to enhance profitability [10][11] Company Strategy and Development Direction - The company is prioritizing profitability and cash flow over top-line growth in response to the current consumer environment [27] - There is a strategic focus on fewer, more profitable categories, allowing for deeper expertise and better service to retail customers [16][19] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the challenges posed by supply chain disruptions and recalls but believes these issues are being addressed through improved capital investment and operational processes [24][26] - The company is optimistic about its ability to navigate the current environment and sees potential for EBITDA growth despite external challenges [31][32] Other Important Information - The company is currently above its long-term leverage target but expects to return to its normal leverage profile by the fourth quarter [62] - There is a belief that the stock price is undervalued, and the company plans to return cash to shareholders if performance aligns with expectations [63][64] Q&A Session Summary Question: What are the thoughts on private label's market share? - Management noted that the grocery consumer is currently soft, with private label growth being flat across categories, and consumers are buying fewer units [4][5] Question: How is the company optimizing its portfolio? - The company has focused on core categories where it can offer the best quality and price, leading to better performance [12][14] Question: What are the risks and opportunities for the full year? - The focus remains on execution and cost savings, with potential upside if consumer trends improve [51][52] Question: How is the company addressing supply chain disruptions? - Management indicated that significant capital investments have been made to improve processes and reduce risks associated with supply chain issues [24][26] Question: What is the outlook for the coffee category? - The coffee category is performing well, with consumers showing resilience despite pricing pressures, and there is an opportunity for trade down behavior [57][61] Question: How does the company view its capital allocation priorities? - The company plans to balance capital between investing in the business and returning cash to shareholders, with no major acquisitions anticipated in the near term [62][63]

Group 1 - TreeHouse Foods' shares increased by 10.5% following hints of potential interest rate cuts from Federal Reserve Chair Jay Powell [1][3] - The company has approximately $1.5 billion in debt with a leverage ratio of about 4.2 times its 2025 EBITDA guidance of $360 million [4] - The company's interest expense rose by 42% year-over-year to $22.2 million last quarter, indicating financial strain [4] Group 2 - The prospect of lower interest rates could improve TreeHouse's financial situation and potentially increase consumer spending [5] - TreeHouse's stock has decreased by 45% this year, trading at about 11 times this year's earnings estimates, suggesting it may be a value opportunity [7] - Continued debt paydown could mitigate risks associated with its high debt levels and lead to a rerating of the stock [8]

TreeHouse Foods, Inc. (NYSE: THS ) is currently trading at multiyear stock price lows and appears well positioned to acquire new companies in the higher-growth, higher-margin snacking and beverage categories. In my view, previous transactions executed by THS indicate thatI started in the investment industry because of my father, and my grandfather, who bought their first shares in the 1960s, and 1970s in the European markets. With academic background in mathematics, and a master in quant economics from Euro ...

OAK BROOK, Ill., Aug. 4, 2025 /PRNewswire/ -- TreeHouse Foods, Inc. (NYSE: THS) today released its 2025 Sustainability Report, which captures progress made during 2024 toward the Company's 2030 Sustainability Goals. A leading private brands snacking and beverage manufacturer in North America, the Company understands the significant role it plays in thousands of supply chains. The Company's sustainability work is integrated throughout its value chain, from supplier engagement on responsible sourcing, to find ...

Key Takeaways THS posted Q2 adjusted EPS of $0.17, beating estimates but falling from $0.29 a year ago.Net sales rose 1.2% to $798M, driven by pricing gains and the Harris Tea acquisition.The gross margin rose 1.1 percentage points to 17.4%, aided by insurance recoveries and supply-chain savings.TreeHouse Foods, Inc. (THS) reported second-quarter 2025 results, wherein both top and bottom lines beat the Zacks Consensus Estimate. While net sales increased, earnings decreased from the year-ago period.TreeHouse ...

Core Insights - TreeHouse Foods reported Q2 fiscal 2025 results with adjusted net sales of $801.4 million, surpassing analyst estimates of $788.0 million by $13.4 million [1][2] - Adjusted earnings per share (EPS) was $0.17, reflecting a 41.4% decline year-over-year from $0.29 in Q2 2024 [2] - The company experienced a net loss of $2.9 million, significantly improved from a loss of $16.7 million in the same quarter last year, marking an 82.6% reduction [2][8] Financial Performance - Adjusted net sales increased by 1.5% year-over-year from $789.9 million in Q2 2024 [2] - Adjusted EBITDA rose by 3.8% year-over-year to $73.3 million [2][8] - Gross margin improved by 1.1 percentage points to 17.4%, aided by non-recurring insurance recoveries and supply chain efficiency [2][7] Strategic Focus - The company is concentrating on high-growth, high-margin product categories, moving away from less profitable segments like meal preparations and ready-to-drink beverages [4] - Recent acquisition of Harris Tea contributed positively to sales, while the company continues to optimize its portfolio by consolidating lower-margin product lines [5][4] Operational Challenges - Organic sales volume declined by 6.2%, influenced by the exit from lower-margin offerings and a recall of frozen griddle products [6][9] - Other expenses rose to $32.9 million, primarily due to hedging losses and increased interest expenses [8] Outlook and Guidance - Management reaffirmed full-year targets for adjusted EBITDA and free cash flow, expecting adjusted net sales for FY2025 between $3.36 billion and $3.415 billion, indicating a slight decline to modest growth [11] - Anticipated flat sales growth for Q3, with adjusted net sales projected between $840 million and $870 million [11] - Continued pressure on organic volume is expected, but pricing and category recovery are anticipated to improve performance in the second half of the year [11]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q (Mark One) ☒ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the Quarterly Period Ended June 30, 2025. or ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from to Commission File Number: 001-32504 TreeHouse Foods, Inc. | Title of each class | Trading Symbol(s) | Name of each exchange on which registered | | --- | --- ...

Financial Data and Key Metrics Changes - Adjusted net sales increased by 1.4% year over year, reaching approximately $3.36 billion to $3.415 billion for the full year [15][20] - Adjusted EBITDA was $73.3 million, up about 4% year over year, with an adjusted EBITDA margin rising by 20 basis points to 9.1% [15][16] - The company anticipates a full year adjusted EBITDA guidance range of $345 million to $375 million [20] Business Line Data and Key Metrics Changes - The acquisition of Harris Teas contributed nearly 5% to net sales, while pricing adjustments provided a benefit of approximately 4% [16] - Volume and mix negatively impacted adjusted EBITDA by $1.1 million, primarily due to planned margin management actions [17] - Operations and Supply Chain delivered a benefit of $10.6 million year over year, driven by cost savings and improved execution [17] Market Data and Key Metrics Changes - The private brand industry dynamics remain favorable, with private brands maintaining or gaining market share despite a lower consumption environment [7][9] - The current level of national brand promotion is below pre-pandemic levels, with expectations of increased promotional intensity in certain categories [8][9] Company Strategy and Development Direction - The company is focused on margin improvement and cost control, with a commitment to $250 million in gross supply chain savings through 2027 [11][12] - Strategic decisions include closing two plants to optimize the network within the pickles and cookies businesses, enhancing competitive positioning [14] - The company aims to leverage its supply chain initiatives and improved service levels to pursue profitable new business opportunities [21] Management's Comments on Operating Environment and Future Outlook - The operating environment is dynamic, but the company is focused on executing plans to drive profits and cash flow [5][6] - Management expects unit volumes to improve in the fourth quarter, with pricing dynamics continuing to support growth [7][21] - The company anticipates organic volume and mix to decline by high single digits in the third quarter, with a recovery expected in the fourth quarter [21][60] Other Important Information - The company is committed to maintaining a disciplined capital allocation strategy, focusing on organic and inorganic investments that enhance shareholder returns [18] - The company is monitoring tariff policies and their potential impacts on operations and pricing [20] Q&A Session Summary Question: Competitive environment and private label performance - Management noted that private label pricing increases were similar to branded units, and they performed well in four of their top five categories [25][30] Question: Innovation and its impact on private label - Management emphasized that private label acts as a fast follower in innovation, leveraging trends established by branded products [40][42] Question: Ground coffee demand and pricing - Management confirmed strong demand for ground coffee and noted that private label would benefit from lower price points due to tariff impacts [51][55] Question: Broth market share recovery - Management reported improved service levels in the broth category and anticipated regaining market share as production stabilizes [56][57] Question: Expectations for organic volume decline - Management indicated that underlying consumer trends are expected to remain steady, with some tailwinds from recovering production [60][62] Question: Gross margin evolution - Management expects gross margin to remain flat in Q3, with improvements anticipated in Q4 as efficiencies and cost savings materialize [83][84]

TreeHouse Foods (THS) came out with quarterly earnings of $0.17 per share, beating the Zacks Consensus Estimate of $0.1 per share. This compares to earnings of $0.29 per share a year ago. These figures are adjusted for non-recurring items. Over the last four quarters, the company has surpassed consensus EPS estimates two times. TreeHouse, which belongs to the Zacks Food - Miscellaneous industry, posted revenues of $801.4 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 1.8 ...