TREEHOUSE FOODS, INC. Q1 2024 Results
and Outlook
May 6, 2024
© 2024 TreeHouse Foods, Inc. 1
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 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 presentation.
In accordance with the provisions of the Litigation Reform Act, we are making investors aware that 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 presentation 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 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 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").
© 2024 TreeHouse Foods, Inc. 2
Key Takeaways
1 | Company positioned well for FY24 with first quarter |
net sales ahead of guidance and in-line adjusted EBITDA | |
2 | Balance of year outlook supported by strong progress against strategic |
priorities, including conversion of net sales pipeline | |
3 | Realization of planned supply chain savings and Broth facility restart |
to drive second half margin improvement, with run-rate benefit of | |
supply chain savings to be realized in FY2025 | |
4 | Private brands continue to outperform and gain unit share; TreeHouse |
Foods attractively positioned with the financial flexibility to drive long | |
runway of growth | |
5 | Reaffirmed FY24 annual guidance of 0% - 2% Net Sales growth and |
Adjusted EBITDA guidance of $360 - $390 Million |
© 2024 TreeHouse Foods, Inc. 3
Q1 2024 Results
Metric | Guidance | Result |
Net Sales | $780 million to $810 million | $820.7 million |
Adjusted EBITDA | $45 million to $55 million | $46.0 million |
Adjusted EBITDA is a non-GAAP financial measure. See "Comparison of Adjusted Information to GAAP Information" in the Appendix for the definition of the non-GAAP measure, information concerning certain items
affecting comparability, and reconciliation of the non-GAAP measure to the most directly comparable GAAP measure.
© 2024 TreeHouse Foods, Inc. 4
Converting Net Sales Pipeline to Organic Growth in H2 2024 & Beyond
- Strongest net sales pipeline in the Company's recent history
- Commercial teams are executing well; closing on planned 2024 net sales opportunities
- Recent wins in categories where we've invested capital and deepened our capabilities
New
Capabilities
Core
Expansion
Growth
Capacity
Growth Pipeline
© 2024 TreeHouse Foods, Inc. 5
Restart of Broth Facility is
On-Track
- Efforts to restart one of our Broth facilities continues to progress:
- Upgraded equipment
- Redefined and improved processes
- Trained and maintained labor
- Currently running a portion of the production lines
- Strategically moved production to fulfill as much customer demand as possible
- Expected uplift to second half adjusted EBITDA from restart of facility
© 2024 TreeHouse Foods, Inc. 6
Supply Chain Initiatives Driving Efficiencies for Strong Second Half
Expected to Drive Roughly $50 Million of Gross Cost Savings in H2 2024
Improved overall equipment effectiveness (OEE) in Q1 24 vs internal target | |
TMOS | Maintaining higher service levels and consistency of execution where TMOS |
initiatives have been implemented | |
Supply Chain
Initiatives
Procurement
Secured significant year 1 savings to ramp in second quarter and beyond
Launching new spend analytics tool to identify additional savings opportunities
Logistics &
Distribution
Network
Distribution network consolidation plans are underway to drive second half savings
Logistics utilization and efficiency initiatives are in place and delivering savings
© 2024 TreeHouse Foods, Inc. 7
Growth Across Private Brands is a Long-Term Fact
2006-2023 Private Brands Dollar Share of Consumer Packaged Goods
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 |
Source: IRI Market Reports Recession-Proof Your Business (Part 1 & Part 4); Private Label & National Brands: Paving the Path to Growth
Together; Private Label: The Journey to Growth Along Roads Less Traveled; CPG Growth Leaders (2019-2021). MULO+C Outlet.
Historical data was restated to include Aldi. Internal Analysis. Chart not drawn to scale.
© 2024 TreeHouse Foods, Inc. 8
Elevated Price Gaps Are Supportive of Unit Share Gains in Our Categories
Private Brand % Price Gap is Elevated Compared to Historical Levels in THS Categories
Private Brand Continues to Increase Unit Share Year-over- Year and Outperform National Brands in THS Categories
30%
29%
28%
27%
26%
25%
24%
23%
22%
0
29.5% | 26% | |||
28.5% | 25% | |||
24% | ||||
26.1% | 23% | |||
22% | ||||
21% | ||||
20% | ||||
19% | ||||
Q1 | Q1 | Q1 | 4 | 18% |
1 | 2 | 3 | ||
2019 | 2023 | 2024 |
2019
2023 2024
January February March
Charts not drawn to scale. Source: Circana syndicated point of sale 4, 5 and 13 week data for TreeHouse categories.
Current and historical data was restated to include Aldi.
© 2024 TreeHouse Foods, Inc. 9
Sharpened Portfolio & Strengthened Capability Depth to Fuel Growth
Baked | Coffee & | Aseptic | Dry Blends | Pickles | Frozen & |
Snacking | RTD, Tea | Refrigerated | |||
Crackers | Coffee | Broth ◼︎ | ||||||||||||||||||
Pretzels | & RTD ◼︎ | Liquid | ||||||||||||||||||
Cookies ◼︎ | Tea | beverages | ||||||||||||||||||
Cheese | ||||||||||||||||||||
Candy | ||||||||||||||||||||
& Pudding ◼ | ||||||||||||||||||||
Categories where we have | Categories where we have | |
advantaged capabilities and | strengthened capabilities and | |
depth | depth through various | |
investments (growth capex / | ||
M&A) |
Non-dairy | Pickles ◼︎ | Refrigerated | |||||||||||||
creamer ◼︎ | dough ◼ | ||||||||||||||
Powdered | Griddle ◼︎ | ||||||||||||||
beverages ◼︎ | In-store bakery | ||||||||||||||
Hot cereal ◼︎ | |||||||||||||||
Categories where we have | Categories where we see | |
better-for-you and organic | potential to improve competitive | |
offerings | positioning |
© 2024 TreeHouse Foods, Inc. 10
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TreeHouse Foods Inc. published this content on 06 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 06 May 2024 12:32:08 UTC.
