In This Article:
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Adjusted Net Sales: $854 million, slightly below guidance range.
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Adjusted EBITDA: $103 million, at the midpoint of guidance range, up 14% year over year.
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Adjusted EBITDA Margin: 12%, up 160 basis points compared to last year.
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Full Year Adjusted Net Sales Guidance: Negative 2% to negative 1% year over year, or $3.37 billion to $3.4 billion.
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Full Year Adjusted EBITDA Guidance: $335 million to $345 million.
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Free Cash Flow Guidance: At least $120 million.
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Net Interest Expense Guidance: $56 million to $62 million.
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Capital Expenditures Guidance: Approximately $145 million.
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Fourth Quarter Adjusted Net Sales Guidance: $900 million to $930 million, representing negative 1% to 2% year over year growth.
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Fourth Quarter Adjusted EBITDA Guidance: $116 million to $126 million.
Release Date: November 12, 2024
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 an adjusted EBITDA of $103 million, which was at the midpoint of their guidance range, driven by strong adjusted gross profit and supply chain savings.
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The company is making significant progress on supply chain initiatives, with a commitment to deliver $250 million in gross supply chain savings through 2027.
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Private brand unit sales were positive in the quarter, and Treehouse Foods Inc (NYSE:THS) remains well-positioned in the growing private brand grocery market.
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Treehouse Foods Inc (NYSE:THS) is seeing growth in specific categories such as pretzels and in-store baked cookies, which are expected to continue driving momentum.
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The company is focused on profitability and cash flow, building a strong margin management function to enhance profitability by optimizing business mix and pricing architecture.
Negative Points
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Treehouse Foods Inc (NYSE:THS) experienced a voluntary recall of frozen griddle products, impacting net sales and causing a temporary facility closure.
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The company's third quarter adjusted net sales of $854 million were below guidance, affected by weakening consumer trends and shipping delays due to Hurricane Helene.
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There is a significant deceleration in private brand unit sales as the quarter progressed, with continued pressure on consumer spending impacting the broader market.
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Treehouse Foods Inc (NYSE:THS) revised its full-year adjusted net sales guidance to reflect a decline of 1% to 2% year over year, citing slowing consumption and the impact of the recall.
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The company faces challenges in maintaining consistent top-line growth due to macroeconomic headwinds and softer consumption trends in its categories.