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 driven by improved volume and mix despite supply chain and recall challenges.

• Fiscal year 2024 adjusted net sales were $3.38 billion and adjusted EBITDA was $337 million, reflecting stable performance and margin gains amid a difficult consumer environment.

• The company completed the acquisition of Harris Tea in January 2025, enhancing private label tea capabilities and expected to be accretive to net sales and EBITDA.

• Voluntary recall of frozen griddle products led to temporary facility closure, with production and shipments resuming in Q1 2025 and minimal expected financial impact.

• Executed supply chain and margin management initiatives, driving profitability despite macroeconomic headwinds.

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, with margin improving to 13%.

• Fiscal 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.

• Q4 gross profit margin improved to 19.5% from 16.7% a year ago, driven by supply chain savings and insurance recovery.

• Q4 operating expenses fell by $13.3 million year-over-year, reflecting lower incentive compensation and reduced severance and freight costs.

Outlook and guidance

• Fiscal 2025 adjusted net sales are expected between $3.34 billion and $3.4 billion, flat at the midpoint, with volume and mix expected to decline ~1% year-over-year.

• Adjusted EBITDA for 2025 is expected in the range of $345–$375 million; free cash flow projected at least $130 million.

• Q1 2025 adjusted net sales are expected at $785–$800 million (down ~3.5% year-over-year), and adjusted EBITDA at $38–$46 million.

• Capital expenditures for 2025 are projected at $125 million, with a multi-year glide path to lower CapEx rates.