TreeHouse Foods (THS) Q4 2024 earnings summary

Executive summary

• Q4 2024 adjusted net sales reached $911.4 million and adjusted EBITDA was $118.3 million, both in line with expectations, with nearly 4% growth in volume and mix despite supply chain disruptions from a frozen griddle product recall.

• Fiscal year 2024 adjusted net sales totaled $3.38 billion and adjusted EBITDA was $337 million, reflecting flat volume and mix amid ongoing supply chain challenges.

• The acquisition of Harris Tea in January 2025 strengthens competitive positioning in private label tea and is expected to be accretive to net sales and adjusted EBITDA.

• Private brand unit sales decelerated sharply in Q4 due to macroeconomic pressures, with similar trends expected in early 2025.

• Executed supply chain and margin management initiatives, driving profitability despite macro challenges.

Financial highlights

• Q4 2024 adjusted net sales increased 0.2% year-over-year to $911.4 million; adjusted EBITDA rose 9.1% to $118.3 million.

• Adjusted EBITDA margin improved to 13% in Q4, supported by procurement savings and expense management.

• FY 2024 adjusted net sales were $3.38 billion and adjusted EBITDA was $337 million, both within guidance.

• Free cash flow for FY 2024 was $126.1 million, up from $16.5 million in 2023.

• Operations and supply chain delivered a $29 million year-over-year benefit in Q4, with $60 million in gross savings achieved in 2024.

Outlook and guidance

• FY 2025 adjusted net sales guidance: $3.34 billion to $3.40 billion, flat to +1% growth; adjusted EBITDA: $345 million to $375 million, with free cash flow of at least $130 million.

• Q1 2025 adjusted net sales expected at $785 million to $800 million, down ~3.5% at midpoint; adjusted EBITDA $38 million to $46 million.

• Net interest expense for 2025 is projected at $80–$90 million, and capital expenditures at approximately $125 million.