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OAK BROOK, Ill. - TreeHouse Foods, Inc. (NYSE: THS), a leader in private label food and beverage manufacturing with a market capitalization of $1.09 billion, today reaffirmed its financial guidance for 2025 and provided a preliminary earnings estimate for the first quarter. The company anticipates adjusted net sales of at least $792 million and adjusted EBITDA of at least $52 million for the first quarter ended March 31, 2025. According to InvestingPro data, the company's stock is currently trading near its 52-week low of $21.75, while analysis suggests the stock may be undervalued based on Fair Value estimates.
Amidst a dynamic consumer environment, TreeHouse Foods is undertaking significant organizational changes aimed at increasing operational efficiency and cost savings. These measures include the centralization of corporate support functions, anticipated to result in approximately 150 job eliminations. The efficiency drive comes as the company faces challenges with its gross profit margin of 16.47% and a relatively high P/E ratio of 41.92, according to InvestingPro data. Additionally, the company announced the departure of Scott Tassani, Executive Vice President and Chief Commercial Officer, effective May 30, 2025. His responsibilities will be distributed among other senior leaders as part of the effort to streamline decision-making and bolster efficiency.
Chairman, CEO, and President Steve Oakland expressed confidence in the company's direction, stating, "We continue to see significant opportunity to improve our execution and consistency, positioning us to better serve our customers while driving improved profitability."
The company's financial outlook for 2025 remains unchanged, with adjusted annual net sales expected to be between $3.34 billion and $3.40 billion, and adjusted EBITDA from continuing operations projected in the range of $345 million to $375 million. These figures include the anticipated benefits from the cost-saving initiatives announced today, with full realization expected over the fiscal years 2025 and 2026. For deeper insights into TreeHouse Foods' financial health and growth potential, including 14+ additional ProTips and comprehensive valuation analysis, visit InvestingPro.
TreeHouse Foods highlighted that nearly all of its finished goods are compliant with the United States-Mexico-Canada Agreement (USMCA), mitigating potential tariff impacts. Sales outside the United States accounted for about 5% of net sales in 2024, primarily in Canada.
Investors can expect a detailed report on the company's first-quarter results before the market opens on Tuesday, May 6, 2025. This update is based on a press release statement from TreeHouse Foods, Inc.
In other recent news, TreeHouse Foods reported its fourth-quarter 2024 earnings, showing a slight miss on both earnings per share (EPS) and revenue compared to analyst forecasts. The company posted an EPS of $0.95, just below the expected $0.97, and revenue of $905.7 million, missing the forecast of $907.72 million. Despite these misses, TreeHouse Foods has projected its 2025 revenue to be between $3.34 billion and $3.4 billion, slightly below the consensus of $3.42 billion, indicating a cautious optimism about future performance. The company has also completed the acquisition of Harris Tea, which is expected to bolster its private label tea category.
In terms of strategic initiatives, TreeHouse Foods aims to achieve $250 million in supply chain savings by 2027. The company reported significant supply chain savings of $60 million in 2024, contributing to a gross profit margin improvement from 16.7% to 19.5% year-over-year. Stifel analysts maintained a Hold rating on TreeHouse Foods with a $35 price target, acknowledging the company's focus on margin improvement amidst volume pressures. The analysts noted that TreeHouse Foods' approach to enhancing its margin structure could lead to a more stable outlook for the stock.
Additionally, TreeHouse Foods continued its share repurchase program, buying back approximately 1.7 million shares for $61 million in the fourth quarter, as part of a larger repurchase initiative throughout the year. Despite the challenges faced, including a recent frozen griddle product recall, TreeHouse Foods has expressed confidence in its recovery efforts, with production expected to resume in the first quarter. The company's leadership highlighted a focus on driving more profitable business and efficiency across the organization.
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