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TreeHouse Foods, Inc. (NYSE: THS) is a major private label food and beverage manufacturer in North America. The company focuses on producing high-quality food products including snacks (crackers, pretzels, cookies), beverages (nondairy creamer, coffee, tea), and various grocery items (pickles, refrigerated dough, hot cereal, cheese, pudding). The primary sales channel for TreeHouse Foods is retail grocery stores, where products are sold under the retailers' brands. Other channels include co-manufacturing and foodservice.
Founded with a strategic vision and a commitment to quality, TreeHouse Foods has grown significantly over the years. In 2016, TreeHouse acquired Ralcorp, Conagra's former private-label business, marking a major expansion. However, the company has since streamlined its operations, divesting several businesses to focus on high-growth categories.
Recently, TreeHouse Foods signed a definitive agreement with The J.M. Smucker Co. to acquire the Bick's® pickles, Habitant® pickled beets, Woodman's® horseradish, and McLarens® pickled onions brands for approximately $20 million. This acquisition will enhance TreeHouse Foods' presence in the pickles category and provide entry into the Canadian market.
TreeHouse's financial health demonstrates resilience and strategic growth. The company reported a 3.6% increase in net sales for Q3 2023, totaling $863.3 million, driven by the acquisition of Coffee Roasting Capability and favorable pricing. Despite some challenges such as a voluntary product recall, TreeHouse expanded its gross margin and achieved a 13% year-over-year increase in adjusted EBITDA.
As of Q4 2023, TreeHouse Foods further reported net sales of $910.8 million. The company faced some challenges due to supply chain disruptions, but it continues to focus on strengthening its portfolio and enhancing capabilities, particularly in the private brands market which has seen significant growth.
The company's latest financial results indicate a solid start to fiscal 2024, with net sales of $820.7 million for Q1 2024. TreeHouse is making strides in its commercial pipeline, despite a challenging consumer environment and some operational hurdles.
As a leader in the private label sector, TreeHouse Foods remains committed to delivering excellent service to its customers and creating long-term value for its shareholders through strategic investments and operational efficiencies.
TreeHouse Foods (NYSE: THS) announced the successful sale of a significant part of its Meal Preparation business to Investindustrial for $950 million. This strategic divestiture, which results in the creation of Winland Foods, Inc., aims to streamline operations and enhance growth by focusing on higher-margin categories like private label Snacking and Beverage. CEO Steve Oakland emphasized the positive demand trends expected to benefit shareholders in the long run. The transition was facilitated by collaboration with Investindustrial and financial advisers.
TreeHouse Foods, Inc. (NYSE: THS) is recalling one lot of its Tuscan Garden Restaurant Style Italian Dressing due to potential contamination with Asian Sesame Dressing. The latter contains undeclared allergens, soy and wheat, which pose a serious risk for individuals with allergies. This product was distributed nationwide through Aldi between August 23, 2022, and September 23, 2022, with a UPC of 4099100074871 and a 'best if used by' date of August 10, 2023. No allergic reactions have been reported, but customers are advised to return the product for a full refund.
TreeHouse Foods (NYSE: THS) announced the sale of a significant portion of its Meal Preparation business to Investindustrial for $950 million. This divestiture, valued at 13.6x 2022E adjusted EBITDA, aims to simplify operations and enhance focus on the company's higher-margin Snacking and Beverages divisions. The transaction consists of $530 million in cash and $420 million in secured debt, expected to close in Q4 2022. The move is projected to strengthen TreeHouse's balance sheet and improve operational execution.
An investment company indirectly held by Investindustrial VII L.P. has agreed to acquire significant portions of the meal preparation business from TreeHouse Foods (NYSE: THS). This business, generating approximately $1.6 billion in revenue in 2022, includes various private label food products. The acquisition is expected to finalize in Q4, subject to regulatory approvals. With the transaction, Investindustrial aims to enhance its global reach in the food sector, positioning itself as a leading supplier of private label products.
TreeHouse Foods (THS) reported a net sales increase of 19.4% to $1.20 billion in Q2 2022, primarily driven by 17.7% pricing and 2.1% volume growth. The Snacking & Beverages division saw 9.0% volume/mix growth, fueled by rising private label demand. However, the company experienced a net loss of $30.6 million, significantly higher than the $5.2 million loss in Q2 2021. Adjusted EBITDA dropped by 28.2% to $66.5 million. TreeHouse raised its fiscal 2022 net sales growth guidance to mid-to-high teens but reaffirmed adjusted EBITDA expectations of $385-$415 million.
TreeHouse Foods, Inc. (NYSE: THS) announced an audio webcast for its second quarter earnings results conference call on August 8, 2022, at 8:30 a.m. ET. CEO Steve Oakland and Interim CFO Patrick O'Donnell will discuss the quarter's results and future outlook. An earnings release will be available before the market opens. The webcast can be accessed through the Investors section of the company's website, with slides published at 8:15 a.m. ET. TreeHouse is a leading manufacturer of private label food products, operating across 29 product categories in North America and Italy.
TreeHouse Foods (NYSE: THS) announced the resignation of Chief Financial Officer William J. Kelley Jr. to pursue another opportunity, effective June 30, 2022. Patrick O'Donnell, the current Chief Accounting Officer, will serve as interim CFO. The company reaffirms its 2022 guidance, projecting at least 11% net sales growth and adjusted EBITDA between $385 million and $415 million. The expected growth will primarily come from pricing, despite potential volume constraints due to labor and supply chain disruptions. CEO Steve Oakland expressed confidence in the company's strategic position and ongoing transformation.
TreeHouse Foods (THS) reported first-quarter 2022 net sales of $1.14 billion, a 7.9% increase year-over-year. However, the company faced a GAAP loss per diluted share of $(0.05) compared to earnings of $0.01 in 2021. Adjusted EBITDA decreased by 43.5% to $57.5 million due to inflationary pressures and supply chain issues, despite successful pricing strategies. The company reaffirmed its fiscal 2022 net sales guidance of at least 11% growth and adjusted EBITDA guidance of $385-$415 million. Labor and supply chain challenges are expected to affect profitability in the first half of 2022.
TreeHouse Foods, Inc. (NYSE: THS) has appointed Joseph E. Scalzo to its Board of Directors effective immediately. Scalzo brings over 30 years of experience in the consumer packaged goods industry, having led companies such as Atkins Nutritionals and Dean Foods. His extensive background is expected to enhance TreeHouse's strategic transformation, particularly in private label categories. Concurrently, John P. Gainor Jr. and Ashley Buchanan will resign from the Board effective April 30, 2022, due to personal commitments. Scalzo's appointment aims to drive growth and capitalize on opportunities in private label.
TreeHouse Foods has appointed Scott Ostfeld of JANA Partners to its Board of Directors, marking a strategic alliance as JANA holds about 9.2% of the company’s stock. This collaboration aims to enhance shareholder value amidst favorable market conditions. Ostfeld's extensive experience in investments will support the company's growth objectives, as emphasized by CEO Steve Oakland. The appointment reflects ongoing constructive engagement with JANA and aims for improved operational efficiency and market positioning.
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