TreeHouse-THS Q4 Earnings Miss While Sales Beat Estimates, Volume Rises Y/Y

Core Insights - TreeHouse Foods, Inc. reported mixed fourth-quarter fiscal 2024 results, with adjusted earnings of 95 cents per share, which missed the Zacks Consensus Estimate of 97 cents, but improved from 77 cents per share in the prior year [3][11] - Net sales of $905.7 million declined by 0.6% year over year but exceeded the consensus estimate of$ 905 million, with strong performance in categories like pretzels and cookies [3][4] - The company is focused on profitability through strategic margin management, efficiency improvements, and reduced capital expenditures [2] Financial Performance - Adjusted net sales increased slightly by 0.2% year over year to $911.4 million, despite challenges from a product recall and pricing adjustments [4][6] - Gross margin improved by 2.8 percentage points to 19.5%, driven by supply-chain savings initiatives and reduced commodity costs [6] - Total operating expenses decreased to$ 96.4 million from $109.7 million in the previous year, mainly due to lower employee compensation and reduced severance costs [7] Future Outlook - For fiscal year 2025, TreeHouse Foods expects adjusted net sales to range between$ 3.34 billion and $3.40 billion, reflecting a year-over-year change of a 1% decline to 1% growth [11][12] - Adjusted EBITDA from continuing operations is forecasted to be between$ 345 million and $375 million, with capital expenditures expected around$ 125 million [13] - In Q1, adjusted net sales are anticipated to be between $785 million and$ 800 million, representing a year-over-year decline of approximately 3.5% [14]