Q1 2024 TreeHouse Foods Inc Earnings Call Transcript
Key Points
- Net sales of $821 million exceeded the top end of the first quarter guidance of $810 million.
- Adjusted EBITDA of $46 million was within the expected guidance range, indicating stable financial performance.
- Successful expansion of the net sales pipeline by over 20% last quarter, showcasing strong commercial team performance and new customer partnerships.
- Strategic investments in supply chain enhancements are expected to drive significant gross cost savings of approximately $50 million in the latter half of the year.
- Positioned to capture strong consumer trends with private brands consistently gaining market share and the shift towards snacking.
- First quarter net sales declined by 3.9% year-over-year, primarily due to carryover from exited businesses and planned downtime at the broth facility.
- Volume and mix, including absorption, was down $35 million in the quarter, driven by unfavorable category mix and lower volume from the broth business.
- Operations and supply chain were an $8 million headwind versus the prior year, primarily due to higher labor costs and the impact of the broth facility restart.
- SG&A and other contributed negative $15 million versus last year, mainly due to less TSA income as expected.
- Facing challenges with cocoa commodity inflation, necessitating pricing actions to recover increased costs.
Welcome to the TreeHouse Foods first-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 Statement.
Good morning. And thank you for joining us today. Earlier this morning, we issued our earnings release and posted our earnings deck, both of which are available within the Investment 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. Information concerning these risks is contained in the company's filings with
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