THS - NYSE
TreeHouse Foods, Inc.
THS·NYSE
$24.43
-0.029%Consumer DefensivePackaged Foods
TreeHouse Foods, Inc. manufactures and distributes private label foods and beverages in the United States and internationally. It operates through two segments, Meal Preparation, and Snacking & Beverages. The Meal Preparation segment provides aseptic cheese and pudding products; baking and mix powders; hot cereals; jams, preserves, and jellies; liquid and powdered non-dairy creamers; macaroni and cheese; mayonnaise; Mexican, barbeque, and other sauces; pastas; pickles and related products; powdered soups and gravies; refrigerated and shelf stable dressings and sauces; refrigerated dough; single serve hot beverages; skillet dinners; and table and flavored syrups. The Snacking & Beverages segment offers bars, broths, candies, cookies, crackers, in-store bakery products, pita chips, powdered drinks, pretzels, ready-to-drink coffee, retail griddle waffles, pancakes, French toasts, specialty teas, and sweeteners. The company sells its products through various distribution channels, including retailers, foodservice distributors, and co-manufacturers, as well as industrial and export, which includes food manufacturers and repackagers of foodservice products. TreeHouse Foods, Inc. was founded in 1862 and is based in Oak Brook, Illinois.
At a Glance
Live SnapshotMarket Cap$1.23B
EPS0.5200
P/E Ratio46.98
Earnings Date05/04/2026
Earnings Call Transcript
THS • 2025 • Q1
Operator
Welcome to the TreeHouse Foods' First Quarter 2025 Conference Call. All participants are in a listen-only mode. After today's presentation, there will be an opportunity to ask questions. [Operator Instructions] Please note, this call is being recorded. At this time, I would like to turn the call over to TreeHouse Foods for the reading of the Safe Harbor statements.
Matt Siler
Good morning and thank you for joining us today. Earlier this morning, we issued our first quarter earnings release and posted our earnings deck. These items 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. Information concerning those risks is contained in the company's filings with the SEC. A reconciliation of non-GAAP measures to their most direct comparable GAAP measures can be found in the release and in appendix tables of today's earnings deck. With that, let me now turn the call over to our Chairman, CEO and President, Mr. Steve Oakland.
Steven Oakland
Thanks, Pat. As we continue to navigate this backdrop in 2025, we are focused on further strengthening the foundation of our supply chain, margin management initiatives, restoring production levels in key categories and pursuing profitable new business opportunities. With that, I'll turn the call over to the operator to open the line for your questions.
Operator
Thank you. We will now begin the question-and-answer session. [Operator Instructions] Our first question comes from the line of Jon Andersen with William Blair. Your line is now open.
Steven Oakland
Morning Jon, are you on mute?
Jon Andersen
I'm sorry, can you hear me?
Steven Oakland
Got you Jon, thank you. Good morning.
Jon Andersen
Great. Good morning. Apologize for that. Wanted to ask you about the kind of the macro uncertainty that we're experiencing and how that's being expressed in maybe consumer demand, particularly for private label. You noted on Slide 5 that March was kind of a trough in unit trends in your categories with some recovery in April. How are you thinking about kind of the consumption trends as you move forward from here, is private label positioned to perhaps benefit from some of those additional external pressure that the consumer may be feeling? And what are your kind of assumptions related to that as they incorporate it into the full year outlook?
Steven Oakland
Sure Jon. Yes. Well, first of all, let me remind you. Look, we guided zero trend in our number, right? So, any trend that would happen or any more shift to private label would be upside in our number. We do see an environment where the consumer is searching for value and private label when it comes to quality assortment and price gap are probably the best they've ever been. So, if that trend comes our way, it's going to be upside. But we've just taken a really conservative stance in our sales guidance, and we feel very comfortable with what we see in front of us and the order pattern that we see that we can deliver that. But we wouldn't be surprised if we saw some upside there.
Steven Oakland
Yes. And Jon, I would just say that when we made that pivot, really, we knew about it in the fourth quarter of last year. So, we wanted to get on that quickly to get the full year benefit of some of those exits. And so that's what you see early in the year.
Jon Andersen
Makes sense. Thanks so much.
Operator
Thank you. The next question comes from the line of Jim Salera with Stephens, Inc. Your line is now open.
Jim Salera
Hey Steve, hey Pat, thanks for taking our question.
Steven Oakland
Hey Jim.
Jim Salera
I wanted to actually ask a little bit about some of the bids you guys are talking about and the decisions to not pursue business that doesn't meet certain margin targets. Have you found that as retailers are trying to maybe mitigate some potential tariff impacts that they're being more aggressive in the numbers that they're putting out and what they expect private label suppliers to bid on?
Steven Oakland
I would say it really isn't that. Let me give an example maybe. I'll take a really simple one, sandwich cream cookies, okay? That's a business that -- it's a great category. Private label has a small share but it's one that capacity is really tight, okay? So, at the end of last year, we exited some really complex seasonal things, assortment that we had with key customers. That has allowed us to run our plants much more efficiently and literally take the whole category of allocation. So, what we've done is we've narrowed our mix. We've exited some, what I would call, great products but really complex and difficult to make. And that has allowed us to unleash a lot more capacity and fill those customers' demand on our core items, the chocolate and vanilla sandwich cream cookie, right? So, I think in some cases, it's been literally that simple. In categories where capacity is really tight, let's streamline the assortment, let's pick those right places where we can serve the customer and where we can run our plants incredibly efficiently. So, I would say it's less the customer pushing us for price and more us just trying to get our absolute capacity aligned with the opportunity to serve the customer the best.
Jim Salera
Got it. And you kind of answered the question, but maybe just to put a finer point on that. So, in these instances where you opt not to pursue certain business, it's usually the case that, that just gets removed from the assortment, not that it goes to a competitor? Is that a fair way to frame it?
Steven Oakland
Those seasonals may go to a smaller competitor, quite frankly. I think it's more about us being much more disciplined on aligning what we do really well with what the customer needs and maybe not trying to do everything for them. Sometimes when we try to do everything, we end up just being inefficient and that impact rolls down the hill in our facilities. So, I think it's really about us aligning what we do best with what they need. And boy, they appreciate it, right? They appreciate the fact that we can take those other categories off allocation. We can fill their needs in full. So, I think it's a great relationship with the customer. And in some cases, a smaller vendor may get that specialty item, and that's great. I think that's fine.
Jim Salera
Okay, appreciate the color.
Operator
Thank you. Our next question comes from the line of Scott Marks with Jefferies. Your line is now open.
Steven Oakland
Yes. Griddle will be a nice positive lap in the fourth quarter.
Scott Marks
Understood. Thanks so much. I'll pass it on.
Operator
Thank you. [Operator Instructions] The next question comes from the line of William Reuter with Bank of America. Your line is now open.
William Reuter
Good morning. My first question on the resale of your griddle pipeline. How has that gone so far? Kind of where are you at with regard to capacity utilization versus prior to having the recall?
Steven Oakland
Sure. I give that team a lot of credit. We're up and running. We're running all of our lines. It will take us a few months to get the customer pipeline and all the inventories filled back up. That's why we say it will probably -- the benefit of that will come in the back half of the year, not the front half of the year. But we're in good shape. So, I would look at the broth recall as an example. The broth recall today, we have a larger broth business than we did before that incident happened. And that's because we work closely with the customer and they have confidence in what we've done and the value of that capacity, quite frankly. And I think it's a bit early to claim victory on the waffle one, but we see very similar trends happening with waffles.
William Reuter
Great. That’s all from me. Thank you.
Operator
Thank you. At this time, there are no further questions. So, that concludes our question-and-answer session. So, I'd like to now turn the conference back over to Mr. Oakland for closing remarks.
Steven Oakland
Sure. I'd just like to thank everyone for being with us today. I know it's a busy day for you all as well as for us. So, we'll look forward to being together with you shortly. Have a great day.
Transcript from May 6, 2025
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