Treehouse Foods — Q4 2024 Earnings Presentation
27 slides from Treehouse Foods's earnings presentation, Feb 14, 2025
Slide 1: Q4 2024 Results and 2025 Outlook
Q4 2024 Results and 2025 Outlook February 14, 2025 © 2025 TreeHouse Foods, Inc. 1
Slide 2: Forward Looking Statement
Forward Looking Statement From time to time, we and our representatives may provide information, whether orally or in writing, which are deemed to be "forward-looking" within the meaning of the Private Securities Litigation Reform Act of 1995 (the "Litigation Reform Act"). These forward-looking stat
Slide 3: Key Takeaways
KeyTakeaways Key Takeaways Delivered Q4 2024 Adjusted Net Sales of $911 million and Adjusted 1 EBITDA of $118 million; both growing in-line with expectations Made significant progress restoring production and have begun 2 shipping frozen griddle product from our Brantford facility Successfully execu
Slide 4: Griddle Business Update
Griddle Business Update • Initiated a voluntary recall of frozen griddle products manufactured at our Brantford, Ontario, Canada facility in October 2024 out of commitment to food safety and quality • Temporarily closed facility to conduct and confirm effectiveness of sanitation and hygienic restora
Slide 5: Completed the Acquisition of Harris Tea
Completed the Acquisition of Harris Tea • Deal closed in early January • Private Label Tea has shown strong unit growth (4% CAGR) since 2022 • Transaction is accretive to both Net Sales (roughly 4%) and Adjusted EBITDA in 2025 • Manufacturing assets include sourcing, blending and packaging capabilit
Slide 6: Q4 2024 and FY 2024 Results
Q4 2024 and FY 2024 Results Key Q4 2024 Highlights Metric Q4 Guidance Result • Drove sequential sales trend improvement, including positive Adjusted Net Sales $900 million to $930 million $911 million volume/mix Adjusted • Drove sequential improvement in $116 million to $126 million $118 million EBI
Slide 7: Consumption Decelerated in TreeHouse Foods Categories
Consumption Decelerated in TreeHouse Foods Categories Private Brand Unit Growth in THS Categories (Shown in percentage points) 5% 4% 3% 2% 1% 0% -1% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2023 2023 2023 2023 2024 2024 2024 2024 Chart not drawn to scale. Circana syndicated point of sale 13-week Mulo+ data for TreeH
Slide 8: Despite Consumption Pressures, Private Brands Fundamentals Remain Constructive
Despite Consumption Pressures, Private Brands Fundamentals Remain Constructive Private Brands Unit Share Flat in the Private Brands % Price Gap in-line with Promotional Activity Has Not Returned Fourth Quarter in THS Categories Historical Levels in THS Categories to Historical Levels in THS Categori
Slide 9: Private Brands Growth is a Long-Term Fact in North America
Private Brands Growth is a Long-Term Fact in North America 2006-2024 Private Brands Dollar Share of Consumer-Packaged Goods 25% 24% 23% 22% 21% 20% 19% 18% 17% 16% 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Source: IRI Market Reports Recession-Proo
Slide 10: Grocery Retailers Are Investing in Private Brands
Grocery Retailers Are Investing in Private Brands Private Brands is an Important Element within Grocery Retailers’ Strategies Launched largest food Launched new & beverage private private brand brand in 20 years ‘Overjoyed’ +800 ~$56B stores to be added by brand launched end of 2028 in 1995 Sources:
Slide 11: Executing Initiatives to Drive Profitability
Executing Initiatives to Drive Profitability TMOS Capacity Allocation Procurement Supply Chain Margin Pricing Architecture Logistics & Initiatives Management Distribution Network © 2025 TreeHouse Foods, Inc. 11
Slide 12: Near-Term Net Sales and Cash Flow Opportunities
Near-Term Net Sales and Cash Flow Opportunities • Continued optimization of Cambridge broth facility production costs • Resolution of Frozen Griddle Product recall • Coffee acquisition synergies forthcoming post growth capex investment • Moderating levels of growth capex © 2025 TreeHouse Foods, Inc.
Slide 13: Q4 Adjusted Net Sales and Profit Year-Over-Year Performance
Q4 Adjusted Net Sales and Profit Year-Over-Year Performance ADJUSTED NET SALES ADJUSTED EBITDA ADJUSTED EBITDA MARGIN Increased 0.2% to $911.4M Increased 9.1% to $118.3M Increased 110 bps to 13.0% 13.0% $909.1M $911.4M $118.3M 11.9% +0.2% +110 bps +9.1% $108.4M 2023 2024 2023 2024 2023 2024 Q4 Q4 Q4
Slide 14: Q4 2024 and FY 2024 Net Sales Performance Drivers
Q4 2024 and FY 2024 Net Sales Performance Drivers Q4 2024 FY 2024 Q4 year-over-year net sales drivers Volume/Mix 3.8% (0.1)% Impact from Facility • Volume/mix was positively (2.8)% (1.5)% impacted by strong performance Restoration in multiple categories including Pricing (0.7)% (1.7)% pretzels, ISB,
Slide 15: Adjusted EBITDA Year-Over-Year Performance Drivers
Adjusted EBITDA Year-Over-Year Performance Drivers $4 M $118 M $29 M $108 M $0 M $(23) M Q4 23 Vol / Mix PNOC Operations & SG&A and Q4 24 Adjusted (including Supply Chain Other Adjusted EBITDA absorption) EBITDA Chart not drawn to scale. Adjusted EBITDA is a non-GAAP financial measure. See “Comparis
Slide 16: Balanced Capital Allocation Approach
Balanced Capital Allocation Approach 2024 3-Year Total Capital Deployed: $1.6B Investment Capex of $140 million to enhance in the depth and capabilities in growing $484M Business categories $514M CapEx / Debt Growth Paydown 31% Debt Closed FY 2024 with Net Debt to 33% Service Adjusted EBITDA of ~3.3
Slide 17: Initial 2025 and Q1 2025 Outlook
Initial 2025 and Q1 2025 Outlook FY 2025 Q1 2025 Guidance Guidance Adjusted Net Sales $3.340 to $3.400 billion $785 to $800 million Approx. (1.0)% to +1.0% growth Approx. (3.5)% growth at mid-point Adjusted EBITDA $345 to $375 million $38 to $46 million Approx. +2.0% to 11.0% growth Approx. (9.0)% g
Slide 18: Key Takeaways
KeyTakeaways Key Takeaways Delivered Q4 2024 Adjusted Net Sales of $911 million and Adjusted 1 EBITDA of $118 million; both growing in-line with expectations Made significant progress restoring production and have begun 2 shipping frozen griddle product from our Brantford facility Successfully execu
Slide 19: Appendix
Appendix © 2025 TreeHouse Foods, Inc. 19
Slide 20: Comparison of Non-GAAP Information to GAAP Information
Comparison of Non-GAAP Information to GAAP Information The Company has included in this release measures of financial performance that are not defined by GAAP ("Non-GAAP"). A Adjusted Net Sales, Adjusted Cost of Sales, Adjusted Gross Profit, Adjusted Total Operating Expenses, Adjusted Operating Non-
Slide 21: Reconciliation of Net Income From Continuing Operations to EBITDA and Adjusted EBITDA
TreeHouse Foods, Inc. Reconciliation of Net Income From Continuing Operations to EBITDA and Adjusted EBITDA from Continuing Operations Three Months Ended Twelve Months Ended December 31, December 31, (unaudited, in millions) 2024 2023 2024 2023 Net income from continuing operations (GAAP) $ 58.7 $ 6
Slide 22: Reconciliation of Non-GAAP Measures (Q4 2024)
TreeHouse Foods, Inc. Reconciliation of Non-GAAP Measures Three Months Ended December 31, 2024 Net income Total operating Operating Total other Income tax from continuing (Unaudited, in millions, except per share amounts) Net sales Cost of sales Gross profit expenses income expense expense operation
Slide 23: Reconciliation of Non-GAAP Measures (Q4 2023)
TreeHouse Foods, Inc. Reconciliation of Non-GAAP Measures Three Months Ended December 31, 2023 Net income Total operating Operating Total other Income tax from continuing (Unaudited, in millions, except per share amounts) Net sales Cost of sales Gross profit expenses income expense expense operation
Slide 24: Reconciliation of Non-GAAP Measures (FY 2024)
TreeHouse Foods, Inc. Reconciliation of Non-GAAP Measures Twelve Months Ended December 31, 2024 Net income Total operating Operating Total other Income tax from continuing (Unaudited, in millions, except per share amounts) Net sales Cost of sales Gross profit expenses income expense expense operatio
Slide 25: Reconciliation of Non-GAAP Measures (FY 2023)
TreeHouse Foods, Inc. Reconciliation of Non-GAAP Measures Twelve Months Ended December 31, 2023 Net income Total operating Operating Total other Income tax from continuing (Unaudited, in millions, except per share amounts) Net sales Cost of sales Gross profit expenses income expense expense operatio
Slide 26: Reconciliation of Net Cash Provided By Operating Activities to Free Cash Flow
TreeHouse Foods, Inc. Reconciliation of Net Cash Provided By Operating Activities from Continuing Operations to Free Cash Flow from Continuing Operations Twelve Months Ended December 31, 2024 2023 (unaudited, in millions) Cash flow provided by operating activities from continuing operations $ 265.8
Slide 27: Net Debt to Adjusted EBITDA from Continuing Operations Ratio
TreeHouse Foods, Inc. Net Debt to Adjusted EBITDA from Continuing Operations Ratio December 31, 2024 (unaudited, in millions) Current portion of long-term debt $ 1.1 Long-term debt 1,401.3 Add back deferred financing costs 6.7 (Less) Cash and cash equivalents (289.6) Net Debt $ 1,119.5 Adjusted EBIT