TreeHouse Foods, Inc. Renews Share Repurchase Authorization

Rhea-AI Summary

TreeHouse Foods (NYSE: THS) announced that its Board of Directors has approved a $400 million share repurchase authorization with an annual cap of $150 million. The company can begin repurchasing shares immediately through open market, private purchases, or other means. The shares will be held as treasury stock. CEO Steve Oakland stated this decision reflects their capital allocation strategy and the Board's confidence in their balance sheet and future cash generating capability.

Positive

• Board approved substantial $400 million share repurchase program
• Strong balance sheet and cash generation capability indicated by management
• Flexible repurchase timeline allows opportunistic buying at favorable prices

Negative

• Annual cap of $150 million limits short-term buyback potential
• Market conditions may affect timing and execution of repurchases

Insights

Financial Analyst

The $400 million share repurchase authorization with a $150 million annual cap represents a significant commitment to returning capital to shareholders. With a market cap of $1.95 billion, this program could potentially retire over 20% of outstanding shares at current valuation. The open-ended nature and immediate start provide flexibility in execution timing.

The renewal signals strong confidence in cash flow generation and balance sheet health. TreeHouse's strategic focus on private label food manufacturing positions it well in the current economic environment where consumers are increasingly price-conscious. However, investors should note that actual repurchases will depend on market conditions and competing capital needs like debt reduction or growth investments.

OAK BROOK, Ill., Nov. 13, 2024 /PRNewswire/ -- TreeHouse Foods, Inc. (NYSE: THS) announced today that its Board of Directors has approved a $400 million share repurchase authorization. This renewal maintains the existing annual cap of $150 million. The Company will repurchase shares opportunistically and the authorization is open ended. The Company can begin repurchasing shares immediately.

"Today's announcement is a reflection of continued execution of our capital allocation strategy and indicates our Board's confidence in the strength of our balance sheet and our future cash generating capability, which should provide value for our shareholders over time," said Steve Oakland, Chairman, Chief Executive Officer, and President.

Shares will be repurchased in the open market, through private purchases, or otherwise and will be held as treasury stock. The extent to which TreeHouse repurchases its shares and the timing of such repurchase will depend on market conditions and other factors.

ABOUT TREEHOUSE FOODS

TreeHouse Foods, Inc. is a leading private brands snacking and beverage manufacturer in North America. Our purpose is to engage and delight - one customer at a time. Through our customer focus and category experience, we strive to deliver excellent service and build capabilities and insights to drive mutually profitable growth for TreeHouse and for our customers. Our purpose is supported by investment in depth, capabilities and operational efficiencies which are aimed to capitalize on the long-term growth prospects in the categories in which we operate.

Additional information, including TreeHouse's most recent statements on Forms 10-Q and 10-K, may be found at TreeHouse's website, http://www.treehousefoods.com. 

FORWARD-LOOKING STATEMENTS

This press release contains "forward-looking" statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements and other information are based on our beliefs, as well as assumptions made by us, using information currently available. The words "believe," "estimate," "project," "expect," "anticipate," "plan," "intend," "foresee," "should," "would," "could," and similar expressions, as they relate to us, are intended to identify forward-looking statements. Such statements reflect our current views with respect to future events and are subject to certain risks, uncertainties, and assumptions. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described herein as anticipated, believed, estimated, expected, or intended. We do not intend to update these forward-looking statements following the date of this press release. Such forward-looking statements, because they relate to future events, are by their very nature subject to many important factors that could cause actual results to differ materially from those contemplated by the forward-looking statements contained in this press release and other public statements we make. Such factors include, but are not limited to: risks related to quality issues, disruptions, or inefficiencies in our supply chain and/or operations; loss or consolidation of key suppliers; raw material and commodity costs due to inflation; labor strikes or work stoppages; multiemployer pension plans; labor shortages and increased competition for labor; success of our growth, reinvestment, and restructuring programs; our level of indebtedness and related obligations; disruptions in the financial markets; interest rates; changes in foreign currency exchange rates; customer concentration and consolidation; competition; our ability to execute on our business strategy; our ability to continue to make acquisitions and execute on divestitures or effectively manage the growth from acquisitions; impairment of goodwill or long lived assets; changes and developments affecting our industry, including customer preferences and the prevalence of weight loss drugs; the outcome of litigation and regulatory proceedings to which we and/or our customers may be a party; product recalls; changes in laws and regulations applicable to us; shareholder activism; disruptions in or failures of our information technology systems; geopolitical events; changes in weather conditions, climate changes, and natural disasters; and other risks that are set forth in the Risk Factors section, the Legal Proceedings section, the Management's Discussion and Analysis of Financial Condition and Results of Operations section, and other sections of our Annual Report on Form 10-K for the year ended December 31, 2023, and from time to time in our filings with the Securities and Exchange Commission ("SEC"). You are cautioned not to unduly rely on such forward-looking statements, which speak only as of the date made when evaluating the information presented in this press release. TreeHouse expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statement contained herein, to reflect any change in its expectations with regard thereto, or any other change in events, conditions or circumstances on which any statement is based.

View original content:https://www.prnewswire.com/news-releases/treehouse-foods-inc-renews-share-repurchase-authorization-302303466.html

SOURCE TreeHouse Foods, Inc.

FAQ

What is the size of TreeHouse Foods' (THS) new share repurchase authorization?

TreeHouse Foods' new share repurchase authorization is $400 million, with an annual cap of $150 million.

When will TreeHouse Foods (THS) begin its share repurchase program?

TreeHouse Foods can begin repurchasing shares immediately, as announced on November 13, 2024.

How will TreeHouse Foods (THS) execute its share repurchase program?

TreeHouse Foods will repurchase shares opportunistically through open market purchases, private purchases, or other means, with shares being held as treasury stock.

What is the annual limit for TreeHouse Foods' (THS) share repurchase program?

The share repurchase program has an annual cap of $150 million, despite the total authorization being $400 million.