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THS Reports Preliminary Q1 Results, Keeps FY25 View Amid Economic Woes
THSTreeHouse(THS) ZACKS·2025-04-11 12:15

Core Viewpoint - TreeHouse Foods, Inc. is implementing internal restructuring actions to enhance operational efficiency while reaffirming its financial outlook for fiscal 2025, projecting adjusted net sales between 3.34billionand3.34 billion and 3.40 billion, and adjusted EBITDA from continuing operations ranging from 345millionto345 million to 375 million [1][2]. Financial Projections - The company expects adjusted net sales for the first quarter of fiscal 2025 to reach at least 792million,withadjustedEBITDAprojectedataminimumof792 million, with adjusted EBITDA projected at a minimum of 52 million [2]. - The financial guidance for fiscal 2025 includes a partial-year benefit from recent cost-saving measures, with full impact expected to be realized gradually through fiscal years 2025 and 2026 [2]. Organizational Changes - TreeHouse Foods is reorganizing its internal operations, eliminating about 150 corporate roles and removing a key leadership position to streamline operations [5][6]. - The exit of Executive Vice President Scott Tassani by the end of May will not be followed by refilling his position, aiming to reduce overhead costs and accelerate decision-making processes [5][6]. Market Conditions - The company is monitoring global trade conditions and tariff uncertainties, which could impact its business, noting that approximately 5% of its net sales in 2024 came from international markets, primarily Canada [3][6]. - Almost all finished goods currently comply with USMCA, indicating a focus on regulatory compliance in trade [3]. Performance Context - TreeHouse Foods' shares have decreased by 35.2% over the past three months, contrasting with the industry's growth of 3% [8].