Q4 2024 TreeHouse Foods Inc Earnings Call Transcript
Key Points
- Treehouse Foods Inc (THS) completed the acquisition of Harris Tea, enhancing its competitive positioning in the private label tea category.
- Fourth-quarter adjusted net sales of $911.4 million and adjusted EBITDA of $118.3 million were in line with expectations, demonstrating effective cost management.
- The company achieved significant cost savings through procurement initiatives, contributing to improved adjusted gross margin performance.
- Treehouse Foods Inc (THS) is focusing on optimizing costs across its supply chain to drive improved profitability and has visibility to delivering $250 million of gross supply chain savings through 2027.
- The company is strategically positioned to benefit from the long-term growth trends in private brand groceries and consumer snacking preferences.
- Treehouse Foods Inc (THS) experienced a voluntary recall of frozen griddle products, impacting supply chain operations and financial contributions in the first quarter.
- Private brand unit sales saw a sharp deceleration during the fourth quarter due to macroeconomic pressures affecting the broader food and beverage market.
- The company anticipates a challenging macro food environment and slowing category growth in 2025, with expected flat adjusted net sales.
- Volume and mix are expected to decline approximately 1% year-over-year in 2025, influenced by the frozen griddle product recall and other margin management actions.
- Treehouse Foods Inc (THS) is facing low to mid-single-digit inflation in commodities such as coffee and cocoa, which could impact profitability.
Welcome to the TreeHouse Foods fourth-quarter 2024 conference call. (Operator Instructions)
Please note, this event is being recorded. At this time, I would like to turn the call over to Matt Siler, VP of Investor Relations of TreeHouse Foods for the reading of the Safe Harbor statement.
Good morning, and thank you for joining us today.
Earlier this morning, we issued our earnings release and posted our earnings deck, both of which are available within the Investor Relations section of our website at treehousefoods.com.
Before we begin, we would like to advise you that all forward-looking statements made on today's call are intended to fall within the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements are based on current expectations and projections and involve risks and uncertainties that may cause actual results to differ materially from our forward-looking statements. Information concerning those risks is
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