Company Overview - TreeHouse Foods (THS) is currently rated with a Zacks Rank 1 (Strong Buy) and has a Value grade of A [4][3] - The stock is trading at a P/E ratio of 10.68, significantly lower than its industry's average of 16.42 [4] Valuation Metrics - THS has a P/B ratio of 0.69, compared to the industry's average P/B of 1.86, indicating it may be undervalued [5] - The P/CF ratio for THS is 6.61, which is attractive when compared to the industry's average P/CF of 15.14 [6] Investment Potential - The combination of THS's low valuation metrics and strong earnings outlook suggests it is likely being undervalued, making it a compelling value stock at this time [7]

Group 1 - TreeHouse Foods, Inc. will report its financial results for the second quarter ended June 30, 2025, on July 31, 2025, before market open [1] - An earnings call and webcast will be held at 8:30 a.m. ET to discuss the results and provide an outlook for the remainder of the fiscal year [1][2] - A replay of the webcast will be available on the company's investor relations website after the call [2] Group 2 - TreeHouse Foods is a leading private brands snacking and beverage manufacturer in North America, focusing on customer engagement and satisfaction [3] - The company aims to deliver excellent service and build capabilities to drive mutually profitable growth for itself and its customers [3] - Investments in operational efficiencies and capabilities are intended to capitalize on long-term growth prospects in its operating categories [3]

Core Insights - The article emphasizes the importance of value investing, which focuses on identifying undervalued companies through fundamental analysis and traditional valuation metrics [2][3] Company Analysis: TreeHouse Foods (THS) - TreeHouse Foods currently holds a Zacks Rank of 1 (Strong Buy) and an A grade for Value, indicating strong potential for investment [4] - The stock is trading at a P/E ratio of 10.78, significantly lower than the industry average of 16.17, suggesting it may be undervalued [4] - THS has a P/B ratio of 0.69, compared to the industry average of 1.84, further indicating its undervaluation [5] - The P/CF ratio for THS is 6.62, which is also lower than the industry average of 14.96, reinforcing the notion that the stock is undervalued based on cash flow strength [6] - Overall, the metrics suggest that THS is likely undervalued and presents an impressive value stock opportunity at this time [7]

Summary of Treehouse Foods Conference Call Company Overview - Treehouse Foods is a leading private brand food manufacturer in North America, involved in a wide range of product categories from opening price point to national brand equivalents [2][12] - The company has undergone a transformation focusing on portfolio optimization, stronger operating capabilities, and improved balance sheet, aiming for dependable profit growth by 2025 [2] Industry Insights - The food industry is currently experiencing flat growth, particularly in the top quartile, but Treehouse sees this as a unique opportunity for growth [4] - Private label products have shown consistent growth over the past few decades, particularly in snacking and beverage categories [4][5][6] - The COVID-19 pandemic temporarily disrupted growth, but the private label segment rebounded quickly post-stimulus [5][6] Market Dynamics - Private label penetration is increasing across various demographics, especially among Gen Z and Millennials [7] - Retail partners are leveraging private label to build customer loyalty, with Walmart being a significant player in this space [9][10] - Retailers like Aldi and Costco are expanding their private label offerings, indicating a growing trend [10] Financial Performance and Projections - For 2025, Treehouse expects adjusted net sales between $3.34 billion and $3.4 billion, reflecting a slight decline in volume mix but offset by pricing strategies [45] - EBITDA is projected to be between $345 million and $375 million, showing year-over-year improvement driven by supply chain savings and margin management [47] Strategic Initiatives - The company is focusing on supply chain improvements, including the implementation of the Treehouse Management Operating System (TMOS) to enhance operational efficiency [26][27] - Procurement cost savings have been a significant driver of margin improvement, leveraging scale to negotiate better pricing on ingredients and packaging [29] - Treehouse is streamlining its logistics network to reduce distribution points and improve service to customers [30] Margin Management - The company aims to maximize plant utilization and eliminate complexity in its operations to enhance margins [32][33] - Recent organizational changes have been made to improve customer focus and decision-making speed [34] Capital Allocation - Treehouse prioritizes investing in the business for risk-adjusted returns, with a focus on organic growth through capital expenditures and potential bolt-on acquisitions [38][39] - The acquisition of Harris Tea is highlighted as a strategic move to enhance capabilities in the tea category [42] Conclusion - Treehouse Foods is positioned to capitalize on the growing private label market, with a focus on operational efficiency and margin management to drive profitability [48][49] - The company is confident in its ability to navigate the current economic environment and deliver solid financial performance moving forward [49][56]

OAK BROOK, Ill., May 21, 2025 /PRNewswire/ -- TreeHouse Foods, Inc. (NYSE: THS) announced today participation in the following investor conferences in June:June 4, 2025: William Blair 45th Annual Growth Conference in Chicago, Illinois. TreeHouse Foods will be available for 1x1 meetings and will present beginning at 8:40 a.m. CT on Wednesday, June 4, 2024. A live audio webcast and presentation will be available on the Company's website: William Blair 45th Annual Growth Stock Conference. A replay of the prese ...

Financial Performance - Net sales for Q1 2025 were $792.0 million, a decrease of 3.9% compared to $820.7 million in Q1 2024[11] - Gross profit increased to $115.2 million in Q1 2025, up from $112.0 million in Q1 2024, resulting in a gross margin of 14.5%[11] - The net loss for Q1 2025 was $31.8 million, compared to a net loss of $11.7 million in Q1 2024, reflecting a significant increase in losses[11] - Operating loss for Q1 2025 was $5.5 million, compared to an operating loss of $5.2 million in Q1 2024[11] - Interest expense increased to $19.3 million in Q1 2025, up from $15.6 million in Q1 2024[11] - The company reported a comprehensive loss of $31.6 million for Q1 2025, compared to a comprehensive loss of $14.3 million in Q1 2024[13] - Adjusted EBITDA increased by $11.5 million or 25.0% to $57.5 million in Q1 2025 from $46.0 million in Q1 2024[118] - Adjusted net income improved to $1.5 million in Q1 2025, compared to a loss of $1.8 million in Q1 2024, representing a change of $3.3 million or 183.3%[118] Assets and Liabilities - Total current assets decreased to $775.5 million as of March 31, 2025, down from $1,009.7 million at the end of 2024[9] - Total liabilities decreased slightly to $2,408.4 million as of March 31, 2025, compared to $2,431.1 million at the end of 2024[9] - Cash and cash equivalents dropped significantly to $16.4 million at the end of Q1 2025, down from $289.6 million at the end of 2024[9] - The outstanding accounts receivable sold under the Receivables Sales Program was $282.5 million as of March 31, 2025, down from $375.0 million at December 31, 2024[37] - The company reported total inventories of $589.2 million as of March 31, 2025, an increase from $539.3 million at December 31, 2024[39] - Total property, plant, and equipment as of March 31, 2025, was $1,617.9 million, with accumulated depreciation of $860.4 million[49] - Goodwill increased from $1,819.3 million at December 31, 2024, to $1,889.1 million at March 31, 2025, primarily due to an acquisition[50] Restructuring and Costs - The company incurred total costs of $18.3 million related to restructuring programs for the three months ended March 31, 2025, compared to $6.7 million for the same period in 2024, reflecting a significant increase[33] - The company expects total costs related to the exit of the Ready-to-drink business to be approximately $5.0 million, with cumulative costs incurred to date at $3.8 million[28] - The company announced the closure of its New Hampton facility, expecting total costs related to this closure to be approximately $13.0 million, with $3.2 million incurred for the three months ended March 31, 2025[29] - The company expects to incur approximately $14.0 million in total costs related to the closure of its Dallas facility, with cumulative costs incurred to date at $12.9 million[31] - Employee-related costs associated with restructuring programs amounted to $10.1 million for the three months ended March 31, 2025, compared to $2.6 million for the same period in 2024[33] Acquisitions - The company completed the acquisition of Harris Tea for approximately $207.6 million, with net sales of $38.6 million and income before income taxes of $1.9 million from the acquisition included in the financial statements[40][41] - The company recognized $69.7 million of goodwill from the acquisition of Harris Tea, primarily due to growth opportunities and customer synergies[42] - The acquisition of Pickle Branded Assets was completed on January 2, 2024, for a total consideration of approximately $25.9 million in cash[47] - The purchase price allocation for the Pickle Branded Assets included $25.2 million for inventories and $0.7 million for trademarks[48] Debt and Financing - Total outstanding debt as of March 31, 2025, was $1,434.3 million, an increase from $1,409.1 million at December 31, 2024[54] - The Company incurred a loss on extinguishment of debt totaling $2.6 million during the quarter ended March 31, 2025[57] - As of March 31, 2025, the Company had $25.0 million drawn from its $500.0 million Revolving Credit Facility, with remaining availability of $443.1 million[58] - The Company entered into a $480.0 million Term Loan A on January 17, 2025, with a maturity date of January 17, 2030[61] - Deferred financing costs amounted to $11.5 million as of March 31, 2025, up from $6.7 million at December 31, 2024[65] Stock and Compensation - The company authorized a $400 million stock repurchase program, with $393.5 million remaining available as of March 31, 2025[66] - For the three months ended March 31, 2025, TreeHouse Foods repurchased no shares, while 1.2 million shares were repurchased in the same period of 2024 at an average price of $36.61 per share[67] - Total compensation expense related to stock-based payments was $5.6 million for the three months ended March 31, 2025, compared to $5.7 million in 2024[71] - The fair value of vested restricted stock units was $8.3 million for the three months ended March 31, 2025, down from $8.8 million in 2024[75] - Unrecognized compensation costs related to nonvested performance units were approximately $11.0 million as of March 31, 2025, expected to be recognized over 2.1 years[80] Cash Flow - Cash flows used in operating activities were $53.5 million for Q1 2025, compared to $52.4 million in Q1 2024[18] - Free cash flow for the three months ended March 31, 2025, was $(75.3) million, compared to $(80.5) million for the same period in 2024[159] - Net cash used in investing activities surged to $231.1 million in Q1 2025, primarily due to a $209.3 million acquisition of a private brand tea business[132] Other Financial Metrics - The effective tax rate for the three months ended March 31, 2025, was 27.1%, compared to 23.5% for the same period in 2024[52] - The company recorded a product recall liability of $12.8 million as of March 31, 2025, up from $9.6 million as of December 31, 2024, due to a voluntary recall of frozen waffle products[84] - The company recognized a total unrealized loss of $17.0 million on derivative contracts for the three months ended March 31, 2025, compared to a gain of $7.0 million for the same period in 2024[97] - The company operates one reportable segment focused on manufacturing and distributing private brand food and beverages primarily in North America[98] - The company is seeking to recover recall-related costs through insurance coverage, with the total actual costs subject to uncertainties[85]

TreeHouse Foods, Inc. (THS) reported first-quarter 2025 results with the top and bottom lines surpassing the Zacks Consensus Estimate. Although net sales declined year over year amid economic headwinds, the company’s earnings improved. Management maintained its full-year guidance.TreeHouse Foods’ Quarterly Performance: Key InsightsTreeHouse Foods posted adjusted earnings of 3 cents per share, surpassing the Zacks Consensus Estimate, which was pegged at a loss of 21 cents. The bottom line improved from a los ...

Financial Data and Key Metrics Changes - The company achieved adjusted net sales down approximately 3% year over year, with adjusted EBITDA of $57,500,000, which was up 25% year over year [17] - Adjusted EBITDA margin was 7.2%, an increase of 160 basis points compared to the previous year [18] - Adjusted EBITDA benefited from a $6,000,000 timing shift of expenses from Q1 to Q2 [4][23] Business Line Data and Key Metrics Changes - The decline in volume and mix was attributed to planned margin management actions, service impacts from the restoration of the griddle facility, and slower takeaway later in the quarter [18] - The acquisition of Harris Teas contributed nearly 5% to sales, aligning with expectations [18] - Pricing adjustments provided a benefit of approximately 1% primarily in the coffee business [18] Market Data and Key Metrics Changes - Private brand unit sales were slightly negative in the quarter due to consumer pressure and the Easter holiday shift, but categories showed some recovery in April [9] - The private brand industry dynamics remain favorable, with healthy price gaps and continued market share gains over national brands [10] Company Strategy and Development Direction - The company is focused on margin improvement plans and controlling operational factors to drive profits and cash flow [5] - Strategic investments in private brands are being made by grocery retailers, indicating growth opportunities for the company [11] - The company aims to deliver $250,000,000 in gross supply chain savings through 2027, with a focus on profitability and cash flow [13] Management's Comments on Operating Environment and Future Outlook - The operating environment is more dynamic than anticipated, but the company is focused on executing plans to drive profits [5] - Management expressed confidence in the potential upside from private label growth due to consumer demand for value [30] - The company reiterated its full-year adjusted net sales guidance of a decline of 1% to growth of 1% year over year [22] Other Important Information - The company is managing its cost structure by streamlining operations and reducing management layers to enhance decision-making [14] - The decision to close the new Hampton facility is part of a strategy to optimize production efficiency [15] Q&A Session Summary Question: How is macro uncertainty affecting consumer demand for private label? - Management noted that any shift towards private label would be considered upside in their sales guidance, as consumers are seeking value [30] Question: What is the expected impact of margin management actions on the full year? - Management indicated that organic volume and mix are expected to decline about 1% for the full year, with margin management actions impacting this [33] Question: How are decisions made regarding bids that do not meet margin targets? - Management clarified that the focus is on aligning production capacity with customer needs rather than being pressured by retailers for lower prices [39] Question: What are the expectations for snacking categories in the current environment? - Management acknowledged some pressure in snacking categories but noted that consumers are still snacking, with expectations for recovery in the back half of the year [46] Question: How is the refill of the griddle pipeline progressing? - Management reported that all lines are running and that the benefits from the griddle pipeline will be realized in the second half of the year [54] Question: What is the company's target for leverage and its impact on share repurchases? - Management confirmed that the target remains at 3% to 3.5%, with plans to rebuild cash position before reevaluating share repurchase options [57]

TreeHouse Foods (THS) came out with quarterly earnings of $0.03 per share, beating the Zacks Consensus Estimate of a loss of $0.21 per share. This compares to loss of $0.03 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of 114.29%. A quarter ago, it was expected that this food maker would post earnings of $0.97 per share when it actually produced earnings of $0.95, delivering a surprise of -2.06%. Over the last four quarters, t ...

Financial Data and Key Metrics Changes - The company achieved adjusted net sales within guidance range, with adjusted EBITDA exceeding the upper end of guidance by approximately $6 million due to planned expense shifts [4][5] - Adjusted net sales decreased by approximately 3% year over year, while adjusted EBITDA increased by 25% to $57.5 million, resulting in an adjusted EBITDA margin of 7.2%, up 160 basis points from the previous year [15][16] Business Line Data and Key Metrics Changes - The decline in volume and mix was attributed to planned margin management actions, service impacts from the griddle facility restoration, and slower takeaway later in the quarter [16] - The acquisition of Harris Teas contributed nearly 5% to sales, while pricing adjustments provided a benefit of approximately 1% [16][17] Market Data and Key Metrics Changes - Private brand unit sales were slightly negative in the quarter due to consumer pressure and the timing of the Easter holiday, but categories showed some recovery in April [8][9] - The private brand industry dynamics remain favorable, with healthy price gaps allowing private brands to gain market share in a lower consumption environment [9][10] Company Strategy and Development Direction - The company is focused on strengthening its supply chain, margin management initiatives, and restoring production levels in key categories while pursuing profitable new business opportunities [22] - Strategic decisions have been made to streamline operations, including reducing management layers and consolidating divisions to enhance efficiency and decision-making [13][14] Management Comments on Operating Environment and Future Outlook - The operating environment is more dynamic than anticipated, but the company is committed to controlling its operations and executing plans to drive profits and cash flow [5] - The full-year adjusted net sales guidance is reiterated at a decline of 1% to growth of 1%, with expectations of a mid-single-digit decline in organic volume and mix for the second quarter [19][21] Other Important Information - The company has visibility to deliver $250 million in gross supply chain savings through 2027, with significant recent success in procurement [12] - The company is focused on maintaining a balance sheet that supports its net debt to adjusted EBITDA ratio, aiming for a target range of 3% to 3.5% [52][53] Q&A Session Summary Question: How is macro uncertainty affecting consumer demand for private label? - Management noted that any shift towards private label would be upside in their numbers, as consumers are seeking value and the quality and price gaps for private labels are favorable [27][28] Question: What should be expected regarding margin management activity? - Management indicated that organic volume and mix are expected to decline about 1% for the full year, with margin management actions impacting the top line [30][31] Question: How are decisions made regarding bids that do not meet margin targets? - Management explained that the focus is on aligning capacity with customer needs, streamlining product offerings, and enhancing operational efficiency rather than being pressured by retailers [37][38] Question: What are the thoughts on snacking categories and their performance? - Management acknowledged some pressure in snacking categories but noted that consumers are still snacking, with expectations for improvement in the back half of the year due to seasonality and recovery of the griddle plant [42][45] Question: How is the refill of the griddle pipeline progressing? - Management reported that all lines are running and while it will take time to fill the customer pipeline, they expect benefits to materialize in the second half of the year [49][50] Question: What is the focus regarding capital allocation and leverage goals? - Management confirmed that the target leverage remains at 3% to 3.5%, with plans to rebuild cash positions and reevaluate options for capital deployment later in the year [52][53]