TreeHouse Foods reported financial results for the third quarter of 2024. The company continues to expect capital expenditures of approximately $145 million and now expects free cash flow of at least $120 million.
“Our third quarter results were mixed, as a tough operating environment with softer consumer takeaway led to sales below our expectations. However, I was pleased with our supply chain savings, which led to margin improvement and profit that was within our guidance range,” said Steve Oakland, Chairman, Chief Executive Officer, and President. “Immediately following the quarter, we discovered a potential contamination during routine product testing and initiated a voluntary recall of our frozen griddle products. We have an unwavering commitment to food safety and quality and will continue to diligently manage this ongoing situation led by our values and focusing on the safety of our customers and consumers.”
Here are some highlights from the report:
“As we look forward, we continue to expect sequential improvement in organic volume growth, though the challenging consumer backdrop and the impact of the recall have led us to temper our expectations,” added Oakland. “I continue to be confident in our competitive positioning moving forward and believe our strategy, which includes initiatives in our supply chain and margin management opportunities, can drive meaningful profit improvement.”
The net sales decrease of 2.8 percent was primarily due to a voluntary recall of frozen griddle products, a press release explained. Additionally, unfavorable volume/mix performance was negatively impacted by approximately $5 million to $10 million due to Hurricane Helene, which disrupted distribution in the Southeastern region of the United States. Targeted commodity-driven pricing adjustments in select categories also contributed to the decline.
Click here for the full press release.
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