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Dec 31, 2024
TreeHouse Q4 2024 Earnings Report
TreeHouse's Q4 2024 financial performance showcased resilience with net sales and adjusted EBITDA meeting guidance, despite a challenging macro environment and supply chain issues.
Key Takeaways
TreeHouse Foods reported Q4 2024 results with net sales of $905.7 million and net income from continuing operations of $58.7 million. Adjusted EBITDA was $118.3 million. The company issued initial fiscal year 2025 outlook with adjusted net sales in a range of $3.340 billion to $3.400 billion, adjusted EBITDA in a range of $345 million to $375 million, and free cash flow of at least $130 million.
Net sales for Q4 2024 totaled $905.7 million, a slight decrease of 0.6% compared to the same period last year.
Gross profit margin increased to 19.5% in Q4 2024, compared to 16.7% in Q4 2023, driven by supply chain savings initiatives and an insurance recovery.
Net income from continuing operations for Q4 2024 was $58.7 million, a significant increase from $6.4 million in Q4 2023.
Adjusted EBITDA from continuing operations increased to $118.3 million in Q4 2024, compared to $108.4 million in Q4 2023, primarily due to supply chain savings initiatives.
TreeHouse
TreeHouse
Forward Guidance
TreeHouse issued the following outlook and guidance for fiscal year 2025: •Adjusted net sales in a range of $3.340 billion to $3.400 billion, •Adjusted EBITDA from continuing operations is expected in a range of $345 million to $375 million. •The Company expects free cash flow of at least $130 million.
Positive Outlook
- Adjusted net sales in a range of $3.340 billion to $3.400 billion
- Pricing is expected to provide an approximately 1% benefit.
- Adjusted EBITDA from continuing operations is expected in a range of $345 million to $375 million.
- Net interest expense is expected in the range of $80 to $90 million.
- The Company expects free cash flow of at least $130 million.
Challenges Ahead
- Adjusted net sales in a range of $3.340 billion to $3.400 billion, which represents a decline of approximately 1% to growth of approximately 1% year-over-year
- Volume/mix are expected to decline approximately 1% year-over-year
- Organic volume/mix decline approximately 1%
- Harris Tea volume benefit offset by previously announced decision to exit Ready-to-drink ("RTD") business and other margin management actions, along with one-time impact of frozen griddle product recall.
- Adjusted net sales in a range of $785 million to $800 million for Q1 2025, which is down approximately 3.5% at the mid-point year-over-year