TreeHouse Foods (THS) The 44th Annual William Blair Growth Stock Conference summary

Industry trends and market positioning

• Private label is leading food and beverage industry growth, with snacking and beverage categories outpacing overall sector growth.

• Private brands have grown share over the past 20 years, with post-COVID consumer value orientation accelerating this trend.

• Retailers like Walmart and Aldi are heavily investing in private brands, expanding store counts and launching new brands.

• Gen Z and Millennial consumers show high trust and quality perception for private brands, supporting future growth.

• Private brands now represent over 20% of food and beverage sales in North America, with significant runway to reach 35-40% as seen in other markets.

Strategic initiatives and competitive advantages

• Focused portfolio on snacking and beverage, leveraging large accessible markets and consistent private brand growth.

• Differentiation through vertical integration, end-to-end expertise, and capacity to support growth in constrained categories.

• Investments in supply chain and consumer insights enable margin enhancement and collaborative retail partnerships.

• Examples include expansion in seasoned pretzels, cheese-shaped crackers, and vertically integrated coffee capabilities.

• Emphasis on delivering competitive costs, high service, and national brand-equivalent quality to win commercial business.

Financial performance and outlook

• 2024 guidance: net sales of $3.43-$3.5 billion (flat to 2% growth), Adjusted EBITDA of $360-$390 million, and free cash flow of at least $130 million.

• Profit improvement in H2 2024 driven by new distribution wins and $50 million in supply chain cost savings.

• Strongest sales pipeline in recent history, up 20% YoY, with incremental wins in coffee and refrigerated dough.

• Continuous improvement (TMOS) and procurement initiatives expected to deliver ongoing cost savings and efficiency.

• 2025+ outlook: 3-5% top-line growth, 8-10% Adjusted EBITDA growth, and at least $200 million free cash flow.