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Sep 30, 2024
TreeHouse Q3 2024 Earnings Report
Reported mixed results due to a tough operating environment and softer consumer takeaway, but supply chain savings led to margin improvement.
Key Takeaways
TreeHouse Foods reported mixed Q3 2024 results with net sales of $839.1 million, impacted by a voluntary griddle product recall. However, supply chain savings initiatives led to margin improvement, with adjusted EBITDA within the company's guidance range.
Net sales were $839.1 million; adjusted net sales, excluding the product recall, were $854.4 million.
Net loss from continuing operations was $(3.4) million.
Adjusted EBITDA of $102.5 million was within the guidance range of $98 to $108 million.
Updated 2024 outlook includes adjusted net sales of $3.37 to $3.40 billion and adjusted EBITDA of $335 to $345 million.
Forward Guidance
TreeHouse Foods updated its full-year 2024 guidance, expecting adjusted net sales in the range of $3.37 to $3.40 billion and adjusted EBITDA in the range of $335 to $345 million.
Positive Outlook
- Net sales improvement due to new distribution wins.
- Cost savings initiatives.
- Return to normalized service levels in the Broth business.
- Fourth quarter adjusted EBITDA from continuing operations is expected in a range of $116 to $126 million.
Challenges Ahead
- Weakening consumption trends.
- Softer mix, which creates deleverage in our supply chain.
- Estimated impact from the voluntary griddle recall.
- Fourth quarter adjusted net sales are expected in a range of $900 to $930 million, which represents approximately -1% to 2% growth year-over-year. Organic volume and mix are expected to be up low-single digits. Pricing is expected to be a slight drag.
Historical Earnings Impact
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