Acquisitions and Divestitures - TreeHouse Foods completed the acquisition of Harris Tea, a leading private brand tea manufacturer, on January 2, 2025, aligning with its strategy to enhance capabilities in higher-growth categories [19]. - TreeHouse acquired pickle branded assets from The J.M. Smucker Co. on January 2, 2024, expanding its presence in the Pickles category into Canada [21]. - The company completed the acquisition of the Direct Ship coffee business from Farmer Brothers Company on June 30, 2023, enhancing its coffee product offerings [23]. - The Snack Bars business was sold on September 29, 2023, as part of a strategic review process, which also included the divestiture of a significant portion of the Meal Preparation business in 2022 [22][25]. - The company completed the acquisition of pickle branded assets for $25.9 million on January 2, 2024, expanding its presence in the Pickles category in Canada [140]. - The company completed the sale of its Snack Bars business for approximately $58.7 million in cash on September 29, 2023, resulting in a gain on disposal of $1.1 million [189]. - The company recognized an impairment of $19.3 million related to the RTD beverages asset group due to forecasted cash flow losses [186]. Financial Performance - Net sales for the year ended December 31, 2024, totaled $3,354.0 million, a decrease of $77.6 million or 2.3% compared to $3,431.6 million in 2023 [150]. - Gross profit as a percentage of net sales was 16.4% for 2024, down from 16.8% in 2023, primarily due to a voluntary recall impacting gross profit by 1.1 percentage points [152]. - Total operating expenses increased to $445.3 million in 2024 from $429.2 million in 2023, an increase of $16.1 million [153]. - Total other expense rose to $70.0 million in 2024, up from $63.5 million in 2023, primarily due to a decrease in interest income and unfavorable currency exchange impacts [154]. - Net income from continuing operations was $26.9 million in 2024, a decrease of $32.1 million or 54.4% compared to $59.0 million in 2023 [150]. - Adjusted EBITDA from continuing operations was $337.4 million in 2024, down from $365.9 million in 2023, a decrease of $28.5 million or 7.8% [149]. - The Company reported net sales of $3,354.0 million for the year ended December 31, 2024, with an adjusted net sales figure of $3,377.3 million [214]. - The gross profit as reported was $548.4 million, representing 16.4% of net sales, while the adjusted gross profit was $593.4 million, or 17.6% of adjusted net sales [214]. - The diluted earnings per share from continuing operations was $0.51, while the adjusted diluted earnings per share was $1.91 [214]. Customer Concentration - TreeHouse's ten largest customers accounted for approximately 57.1% of consolidated net sales in 2024, with Walmart Inc. representing 23.9% of those sales [30]. - For the year ended December 31, 2024, the company's ten largest customers accounted for approximately 57.1% of consolidated net sales, with Walmart Inc. and its affiliates representing about 23.9% [57]. Supply Chain and Operational Efficiency - The company is focused on building a world-class supply chain and investing in innovation pipelines to drive growth and category leadership [29]. - Recent macroeconomic challenges have softened private brands consumption, but the company aims to enhance supply chain efficiency to maximize profitable growth [32]. - The company has made considerable progress toward its long-term supply chain cost savings initiative goals, resulting in margin improvement [143]. - Industry-wide supply chain disruptions have improved, allowing the company to enhance service levels and capture demand for private brand food and beverage [143]. - The company continues to monitor elevated ingredient and packaging input costs, implementing pricing actions to recover inflationary costs as necessary [144]. Employee Relations and Development - As of December 31, 2024, the company employed approximately 7,400 full-time employees, with 6,000 in the United States and 1,400 in Canada [44]. - The company emphasizes a strong focus on employee learning and development, offering over 10,000 courses through its internal platform, DevelopU [48]. - The company has not experienced material interruptions in operations due to employee disputes and considers employee relations satisfactory [44]. - The company is committed to competitive pay and benefits, including a 401(k) retirement plan with matching contributions for U.S. employees [49]. - The company faces risks from labor shortages and increased labor costs, which have negatively impacted profitability [56]. Risks and Challenges - The company is dependent on third-party suppliers for manufacturing and packaging, which poses risks to operating results if not managed effectively [53]. - The company is subject to various risks, including supply chain disruptions and product liability claims, which could materially affect its financial condition [51]. - The company may face increased contributions to multiemployer pension plans due to a shrinking contribution base, which could adversely affect financial results [68]. - The company’s ability to service its debt may be limited by its financial condition and operating performance, which are subject to various external factors [81]. - The company faces significant competition in the food industry, which may require price reductions or increased marketing expenditures, adversely affecting margins and profitability [70]. - Input costs, including ingredients and packaging materials, have seen significant inflation, which could adversely affect earnings and operating margins [73]. - The company is exposed to fluctuations in foreign currency exchange rates, particularly with its Canadian subsidiaries, which may negatively impact earnings due to transaction gains and losses [87]. - The company’s operations are subject to risks associated with acquisitions and divestitures, which could impact financial results and business reputation [98]. - The company’s supply chain may be adversely affected by climate change, leading to increased costs for raw materials and potential disruptions in production [90]. Shareholder Activities - The company has experienced shareholder activism, which could result in significant costs and impact stock price [94]. - The company has authorized a $400 million stock repurchase program, replacing the previous authorization of $400 million from 2017, with $393.5 million remaining available for repurchases [119]. - The company repurchased 4.1 million shares of common stock for a total of $149.7 million during the year ended December 31, 2024 [119]. - The company repurchased approximately 1.7 million shares of common stock for a total of $61.0 million during the quarter ended December 31, 2024, at a weighted average price of $36.39 per share [120]. - The Company had 1,530 shareholders of record as of January 31, 2025, and does not anticipate paying cash dividends in the foreseeable future [117]. Environmental and Regulatory Commitments - The company has established a culture of Environmental, Health, and Safety (EHS) excellence, integrating safety into its management operating system [46]. - The company may face increased compliance costs and capital expenditures due to new regulations related to greenhouse gas emissions and water conservation [91]. - The company has made public commitments to reduce carbon emissions, which may require significant resources and could increase operational costs [93]. Debt and Financial Obligations - The company had $1,409.1 million of outstanding indebtedness as of December 31, 2024, including a $588.6 million term loan maturing on March 26, 2026, and $500.0 million of 4.0% notes due September 1, 2028 [81]. - The Company had $316.4 million outstanding under Term Loan A and $588.6 million under Term Loan A-1 as of December 31, 2024 [171]. - Estimated future interest payments on the Company's debt are expected to be $180.3 million, with $73.8 million due in 2025 [181]. - Long-term debt outstanding increased to $1,409.1 million as of December 31, 2024, from $1,405.6 million in 2023, driven by a $3.5 million rise in finance lease obligations [170]. - Capital expenditures for 2025 are estimated at approximately $125 million, following $139.7 million in 2024 [181].

Financial Data and Key Metrics Changes - For Q4 2024, adjusted net sales were $911.4 million and adjusted EBITDA was $118.3 million, both in line with expectations, reflecting almost 4% growth in the period [11][12] - For the full fiscal year 2024, adjusted net sales were $3.38 billion and adjusted EBITDA was $337 million, also meeting updated expectations [12][33] - Adjusted EBITDA margin rose to 13% in Q4 2024, driven by procurement savings [24] Business Line Data and Key Metrics Changes - Adjusted net sales increased by 0.2% year-over-year, primarily driven by a 3.8% increase in volume and mix, particularly in pretzels, in-store bakery, cookies, and broth [26] - The frozen griddle facility restoration negatively impacted sales by 2% [26] - Pricing adjustments due to commodity costs had a headwind of about 70 basis points [26] Market Data and Key Metrics Changes - Private brand unit sales experienced a sharp deceleration in Q4 2024, attributed to macroeconomic pressures affecting the broader food and beverage market [13] - Despite weaker consumption, private brands maintained market share, with promotional activity expected to increase due to industry volume softness [15][16] Company Strategy and Development Direction - The acquisition of Harris Tea strengthens the company's position in the private label tea category and enhances blending and sourcing capabilities [10] - The company plans to focus on supply chain performance and cost structure management to improve profitability and competitiveness [18][20] - A commitment to achieving $250 million in gross supply chain savings through 2027 is emphasized [19] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the challenging macro food environment and anticipates a flat top-line outlook for 2025, with adjusted net sales guidance of $3.34 billion to $3.4 billion [31][32] - The company expects a decline in organic volume mix of approximately 1% due to various factors, including the impact of the frozen griddle product recall [32] - Management remains optimistic about long-term growth opportunities in private brands and snacking categories [16][18] Other Important Information - The company achieved $60 million in gross savings from supply chain cost-saving initiatives in 2024 [28][77] - Capital expenditures are expected to moderate moving forward as the company completes carryover projects from the previous year [30][79] Q&A Session Summary Question: What would you attribute the sequential slowdown in underlying volume to? - Management noted that the ramp-up of the broth facility and category deceleration contributed to the slowdown [43][44] Question: How does the company view the current industry challenges? - Management believes the current challenges are temporary and sees an opportunity to reset and rethink business operations [49][50] Question: Can you elaborate on margin management actions and their impact on volume? - Management indicated that margin management may lead to a slight volume drag but will improve cost efficiency [60][62] Question: What is the expected cadence of supply chain cost-saving programs in 2025? - Management expects a slightly lower contribution from procurement savings in 2025 but anticipates ongoing improvements in manufacturing and logistics [77][78] Question: How does the company plan to handle promotional activity in a low-volume environment? - Management expects promotional activity to increase as brands seek to drive volume, but believes the value proposition for private label remains strong [108][109] Question: What is the outlook for commodity inflation in 2025? - Management anticipates low to mid-single-digit inflation for commodities, particularly in coffee and cocoa [132][133]

Q4 2024 and FY 2024 Performance - Q4 2024 Adjusted Net Sales reached $911 million and Adjusted EBITDA was $118 million, aligning with expectations[5] - FY24 Adjusted Net Sales were $338 billion, and Adjusted EBITDA was $337 million[10] - Q4 2024 Adjusted EBITDA margin was 130%, a 110 bps increase year-over-year[12, 35] - The company closed FY 2024 with Net Debt to Adjusted EBITDA of approximately 33x[44] 2025 Outlook - The company anticipates 2025 Adjusted EBITDA to be in the range of $345 million to $375 million, with flat Net Sales at the midpoint, and Free Cash Flow of at least $130 million[5] - The company projects 2025 Adjusted Net Sales to be between $3340 billion and $3400 billion, representing approximately -10% to +10% growth[48] - The company expects capital expenditures of approximately $125 million in 2025[48] Strategic Initiatives and Acquisitions - The company successfully executing supply chain, margin management and other efficiency initiatives to drive profitability improvement[5] - The company completed the acquisition of Harris Tea, which is expected to increase Net Sales by roughly 4% and Adjusted EBITDA in 2025[9] Griddle Business Update - The company initiated a voluntary recall of frozen griddle products manufactured at the Brantford, Ontario, Canada facility in October 2024[7] - The company began shipping frozen griddle product in Q1 2025, but no financial contribution is anticipated in the period[7]

Group 1 - TreeHouse Foods reported quarterly earnings of $0.95 per share, missing the Zacks Consensus Estimate of $0.97 per share, but showing an increase from $0.77 per share a year ago, resulting in an earnings surprise of -2.06% [1] - The company posted revenues of $905.7 million for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 0.09%, although this represents a decline from year-ago revenues of $910.8 million [2] - Over the last four quarters, TreeHouse has surpassed consensus revenue estimates three times, but has only exceeded consensus EPS estimates once [2] Group 2 - TreeHouse shares have underperformed the market, losing about 5.3% since the beginning of the year, while the S&P 500 has gained 4% [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The current consensus EPS estimate for the coming quarter is $0.16 on revenues of $829.15 million, and for the current fiscal year, it is $2.45 on revenues of $3.4 billion [7] Group 3 - The Zacks Industry Rank indicates that the Food - Miscellaneous sector is currently in the bottom 29% of over 250 Zacks industries, which may negatively impact stock performance [8] - The estimate revisions trend for TreeHouse is currently favorable, leading to a Zacks Rank 2 (Buy) for the stock, suggesting it is expected to outperform the market in the near future [6]

Financial Performance - TreeHouse Foods reported fourth quarter net sales of $905.7 million, a decrease of 0.6% compared to $910.8 million in the same period last year[4]. - Adjusted EBITDA for the fourth quarter was $118.3 million, an increase of $9.9 million from $108.4 million in the fourth quarter of 2023[9]. - The company expects fiscal year 2025 adjusted net sales in the range of $3.340 billion to $3.400 billion, reflecting a year-over-year decline of approximately 1% to growth of approximately 1%[3]. - Gross profit margin for the fourth quarter increased to 19.5%, up 2.8 percentage points from 16.7% in the fourth quarter of 2023[5]. - Net income from continuing operations for the fourth quarter was $58.7 million, compared to $6.4 million in the fourth quarter of 2023[9]. - Operating income increased to $80.5 million for the three months ended December 31, 2024, compared to $42.1 million in the same period of 2023, representing a significant improvement[30]. - Net income from continuing operations for the twelve months ended December 31, 2024, was $26.9 million, compared to $59.0 million in 2023, indicating a decline[30]. - EBITDA from continuing operations for the twelve months ended December 31, 2024, was $239.4 million, down 7.9% from $260.0 million in 2023[35]. - Adjusted EBITDA from continuing operations for the year ended December 31, 2024, was $337.4 million, a decrease of 7.8% compared to $365.9 million in 2023[35]. - The company reported a significant increase in net sales for the twelve months ended December 31, 2024, totaling $3,354.0 million, with a gross profit of $548.4 million[47]. Cash Flow and Capital Expenditures - The company generated $265.8 million in net cash from operating activities in 2024, an increase of $108.5 million from $157.3 million in 2023[10]. - The company anticipates free cash flow of at least $130 million for fiscal year 2025[12]. - Free cash flow from continuing operations increased to $126.1 million for the twelve months ended December 31, 2024, compared to $16.5 million in 2023[51]. - Cash flow provided by operating activities from continuing operations rose to $265.8 million, up from $157.3 million year-over-year[51]. - Capital expenditures for the year ended December 31, 2024, were $139.7 million, slightly down from $140.8 million in 2023[32]. - Capital expenditures were reported at $139.7 million for the twelve months ended December 31, 2024[51]. Shareholder Actions - TreeHouse repurchased approximately 1.7 million shares for $61.0 million during the fourth quarter, with a total of 4.1 million shares repurchased for $149.7 million in 2024[11]. Assets and Liabilities - Total assets decreased to $3,980.0 million as of December 31, 2024, from $4,106.6 million in 2023, indicating a reduction in overall asset base[28]. - Current liabilities increased to $744.9 million as of December 31, 2024, compared to $704.3 million in 2023, reflecting a rise in short-term obligations[28]. - The company reported a decrease in accumulated deficit to $(222.0) million in 2024 from $(248.9) million in 2023, showing improvement in retained earnings[28]. Interest and Expenses - Interest expense for the twelve months ended December 31, 2024, was $63.4 million, down from $74.8 million in 2023, indicating reduced borrowing costs[30]. - Interest paid decreased to $85.2 million in 2024 from $93.7 million in 2023, reflecting a reduction of 9.6%[33]. - Operating expenses totaled $429.2 million, representing 12.5% of net sales[49]. Product Recalls and Impairments - The company incurred product recall-related costs of $36.6 million for the twelve months ended December 31, 2024, compared to $27.0 million in 2023[38]. - The company experienced product recalls and related costs impacting net income, with adjustments totaling $23.3 million for the three months ended December 31, 2023[46]. - The company recognized $19.3 million in non-cash impairment charges related to property, plant, and equipment during the second quarter of 2024[41]. - The company incurred product recalls and related costs of $1.3 million, impacting overall profitability[49]. Earnings Per Share - Earnings per share from continuing operations were reported at $1.15 diluted and $0.95 adjusted diluted for the three months ended December 31, 2024[45]. - Earnings per share from continuing operations for the twelve months ended December 31, 2024, were reported at $0.51 diluted and $1.91 adjusted diluted[47]. Operational Focus - TreeHouse Foods is focused on operational efficiencies and long-term growth prospects in its categories, aiming to enhance service and capabilities for profitable growth[24].

Fourth Quarter Net Sales and Adjusted EBITDA Met Guidance TreeHouse delivered fiscal year 2024 results: Net sales were $3,354.0 million Net income from continuing operations of $26.9 million Adjusted EBITDA1 was $337.4 million Fourth quarter results included: Net sales of $905.7 million Net income from continuing operations of $58.7 million Adjusted EBITDA1 of $118.3 million Issued initial fiscal year 2025 outlook for adjusted net sales in a range of $3.340 billion to $3.400 billion, adjusted EBITDA2 in ...

TreeHouse Foods, Inc. (THS) is likely to witness a top-line decline when it reports fourth-quarter 2024 earnings on Feb. 14. The Zacks Consensus Estimate for revenues is pegged at $904.85 million, indicating a 0.7% decrease from the prior-year quarter’s reported figure.The consensus mark for earnings has remained unchanged in the past 30 days at 97 cents per share, which suggests a 26% jump from the figure reported in the year-ago quarter. THS has a trailing four-quarter earnings surprise of 20.4%, on avera ...

Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.In addition to the Zacks Rank ...

Core Viewpoint - TreeHouse Foods, Inc. is set to report its financial results for the fourth quarter of fiscal 2024 on February 14, 2025, and will provide an initial outlook for the upcoming fiscal year during the earnings call [1]. Group 1: Financial Reporting - The financial results for the fourth quarter ended December 31, 2024, will be reported before market opening on February 14, 2025 [1]. - An earnings call and webcast will take place at 8:30 a.m. ET to discuss the results and provide guidance for the next fiscal year [1]. Group 2: Participation and Resources - Interested participants can register for the webcast through the provided link [2]. - An Earnings Presentation will be available on the company's investor relations website prior to the conference call, and a replay of the webcast will be accessible afterward [2]. Group 3: Company Overview - TreeHouse Foods, Inc. is a leading manufacturer of private brands in the snacking and beverage sector in North America [3]. - The company focuses on customer engagement and aims to deliver excellent service while driving profitable growth through operational efficiencies and capabilities [3]. - Investment in depth and operational efficiencies supports the company's long-term growth prospects in its operating categories [3].

TreeHouse Foods, Inc. (THS) has concluded the previously announced (on Dec. 2, 2024) acquisition of Harris Tea for nearly $205 million, marking a strategic move to enhance its position in the private-label tea market. The acquisition was funded with cash on hand and is expected to be accretive to revenues and profitability beginning in 2025.Strategic Benefits of THS’ Latest AcquisitionThe acquisition of Harris Tea strategically leverages TreeHouse Foods' balance sheet strength, adding a fast-growing, high-m ...