TreeHouse(THS) - 2024 Q4 - Annual Results

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].