TreeHouse Foods (THS) Q3 2024 earnings summary

Executive summary

• Q3 2024 adjusted net sales were $854.4 million, slightly below guidance, impacted by a voluntary recall of frozen griddle products and softer consumer demand.

• Adjusted EBITDA reached $103 million, up 14% year-over-year, with margin improvement driven by supply chain savings.

• Net loss from continuing operations was $3.4 million, compared to net income of $9.8 million in Q3 2023.

• The company is focused on supply chain initiatives, margin management, and restoring production after the recall.

• Hurricane Helene and the recall disrupted sales and distribution.

Financial highlights

• Q3 2024 adjusted net sales decreased 1.4% year-over-year to $854.4 million; reported net sales down 2.8% due to product recall returns.

• Adjusted EBITDA margin improved by 160 basis points year-over-year to 12.0%.

• Adjusted gross profit margin reached 18.9% on softer volume, reflecting successful supply chain savings.

• Q3 adjusted diluted EPS was $0.74, compared to $0.57 in Q3 2023.

• Net (loss) income from continuing operations was $(3.4) million for Q3 2024.

Outlook and guidance

• Full-year 2024 adjusted net sales guidance updated to $3.37–$3.40 billion, down 1–2% year-over-year.

• Adjusted EBITDA guidance revised to $335–$345 million for the year.

• Free cash flow expected to be at least $120 million; capex forecast at $145 million.

• Q4 adjusted net sales expected at $900–$930 million; adjusted EBITDA at $116–$126 million.

• Fiscal 2025 planning assumes continued consumer softness and offsetting effects from new business and the griddle recall.