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TreeHouse Foods Delivers Solid Q1 2024; Steve Oakland Comments

TreeHouse Foods Delivers Solid Q1 2024; Steve Oakland Comments


​​OAK BROOK, IL
Wednesday, May 8th, 2024

Exceeding its guidance range and with plans to leverage what it has experienced, TreeHouse Foods delivered the final numbers on the first quarter of its fiscal 2024 and reaffirmed the company’s annual guidance for the year.

Steve Oakland, Chairman, Chief Executive Officer, and President, TreeHouse Foods"We're encouraged by our solid start to fiscal 2024, delivering net sales results above our expectations. We are building momentum with our commercial pipeline, the largest in recent history, with good progress closing opportunities. I believe this puts TreeHouse in a strong position to deliver our annual net sales commitment," Steve Oakland, Chairman, Chief Executive Officer, and President, stated.

The company pointed to key highlights from the quarter, including:

  • Net sales of $820.7 million, exceeding guidance range of $780 to $810 million
  • Net loss from continuing operations was $(11.7) million
  • Adjusted EBITDA of $46.0 million, within the guidance range of $45 to $55 million
  • Approximately $44 million of company shares repurchased during the quarter
  • Reaffirmed 2024 outlook for net sales of $3.43 to $3.50 billion, adjusted EBITDA of $360 to $390 million and free cash flow of at least $130 million

TreeHouse Foods exceeded its guidance range, delivering net sales results above expectations for its first quarter of fiscal 2024According to a release, Gross Profit as a percentage of net sales in the first quarter of 2024 was 13.6 percent, compared to 18 percent in the first quarter of 2023. The decrease, the company said, is primarily due to the restart of one of its broth facilities, unfavorable fixed cost absorption due to lower volume, increased costs for labor investment, and unfavorable category mix.

"While the downtime at our broth facility impacted first quarter profitability, restart of that facility coupled with our meaningful supply chain savings initiatives position us well to expand margin through the rest of the year and deliver our full year profitability guidance,” Oakland commented. “I am pleased with the focus throughout the company and continue to see a long runway for growth as we invest in opportunities to strengthen capabilities and depth in our higher growth, higher margin snacking and beverage categories. I look forward to updating you on our progress throughout the remainder of 2024."

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