Q2 2024 TreeHouse Foods Inc Earnings Call Transcript
Key Points
- Treehouse Foods Inc (THS) achieved the upper end of their net sales guidance and came close to the upper end of their adjusted EBITDA range for the first half of 2024.
- The company made significant progress in converting net sales pipeline opportunities, contributing to positive volume growth in the second half.
- Supply chain initiatives have driven improved service levels and secured anticipated savings, benefiting both current and future performance.
- The broth facility is operating in line with the plan and ahead of the second half seasonal peak, reinforcing confidence in meeting annual net sales targets.
- Treehouse Foods Inc (THS) is well-positioned at the intersection of growing private brand groceries and consumer shift towards snacking, with private brands consistently gaining market share.
- Net sales and adjusted EBITDA both declined relative to the prior year, with net sales down 1.9% year over year.
- Pricing was a drag of 3% due to targeted commodity-driven pricing adjustments.
- Operations and supply chain were a $3 million headwind versus the prior year, primarily driven by higher labor costs and the impact of broth facility restoration.
- SG&A and other expenses contributed a negative $8 million versus last year, primarily due to investments in employee rewards and benefits and less TSA income.
- The company had to impair assets within their ready-to-drink coffee business, indicating challenges in that segment.
Welcome to the TreeHouse Foods Second Quarter 2024 conference call. (Operator Instructions) Please note that this event is being recorded.
At this time, I would like to turn the call over to Matt Siler of TreeHouse Foods for the reading of the Safe Harbor statements.
Good morning, and thank you for joining us today. Earlier this morning, we issued our second quarter earnings release and posted our earnings deck, both of which are available within the Investor Relations section of our website at TreeHouseFoods.com.
Before we begin, I would like to advise you that all forward-looking statements made on today's call are intended to fall within the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements are based on current expectations and projections and involve risks and uncertainties that may cause actual results to differ materially from our forward-looking statements and information concerning these risks is contained in the company's filings with
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