In This Article:
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Adjusted Net Sales: Down approximately 3% year-over-year.
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Adjusted EBITDA: $57.5 million, up 25% year-over-year.
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Adjusted EBITDA Margin: 7.2%, up 160 basis points compared to last year.
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Harris Tea Acquisition Impact: Contributed almost 5% to net sales.
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Pricing Benefit: Approximately 1% due to commodity-related pricing adjustments.
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Free Cash Flow Expectation: At least $130 million for the year.
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Capital Expenditures: Approximately $125 million.
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Net Interest Expense Guidance: $80 million to $90 million.
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Second Quarter Adjusted Net Sales Guidance: $785 million to $800 million.
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Second Quarter Adjusted EBITDA Guidance: $61 million to $71 million.
Release Date: May 06, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Treehouse Foods Inc (NYSE:THS) achieved adjusted net sales within their guidance range and adjusted EBITDA above the upper end of their guidance range.
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The company is seeing early returns on their margin improvement plan, which is expected to benefit results in the current year and beyond.
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Treehouse Foods Inc (NYSE:THS) is making significant progress at their Brantford, Ontario, frozen griddle facility, with all lines running and customer pipelines being filled.
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Private brands continue to gain market share over national brands, positioning Treehouse Foods Inc (NYSE:THS) favorably in the market.
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The company has visibility to delivering $250 million of gross supply chain savings through 2027, with recent success in procurement.
Negative Points
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Adjusted net sales were down approximately 3% year-over-year, reflecting challenges in volume and mix.
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The company experienced a decline in private brand unit sales due to consumer pressure and the Easter holiday shift.
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Treehouse Foods Inc (NYSE:THS) faced a negative impact on net sales from the griddle recall-related returns and the exit from the ready-to-drink business.
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Organic volume and mix are expected to decline approximately 1% year-over-year, driven by margin management actions and the griddle recall.
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The company is dealing with macroeconomic uncertainties and consumer demand pressures, impacting their outlook.
Q & A Highlights
Q: How is the macro uncertainty affecting consumer demand for private label products, and what are your assumptions for the full year outlook? A: Steven Oakland, CEO, explained that while the macro environment is uncertain, private label products are well-positioned due to their quality and price gap. The company has taken a conservative stance in its sales guidance, expecting any positive trend in private label demand to be an upside.