TreeHouse Foods Q4 2024 Earnings: A Recipe for Success

As the calendar flipped to 2025, TreeHouse Foods, Inc. (NYSE: THS) served up a tantalizing earnings report for the fourth quarter of 2024. The company, a leading manufacturer of private label and branded food and beverage products, delivered a dish that was both delicious and nutritious, with a side of strategic acquisitions and operational improvements.

The quarterly results were a symphony of positive notes, with net sales of $905.7 million and net income from continuing operations of $58.7 million. Adjusted EBITDA came in at a healthy $118.3 million, a 13.0% margin that was 110 basis points higher than the prior year. This was a testament to the company's ability to navigate a challenging macro environment and execute on its strategic initiatives.



TreeHouse Foods' strategic decisions on margin management and efficiency opportunities were the secret sauce behind the improved profitability and cash flow. By making strategic decisions on margin management for new and existing business, prioritizing gross profit dollars, and identifying additional efficiency opportunities across the organization, the company was able to drive improved profitability and cash flow. This, combined with declining levels of capital expenditure (capex) as growth-related investments were completed, positioned the business well in the near-term and provided the opportunity for significant operating leverage when the company's categories return to growth.

The company's supply chain initiatives and cost-saving measures also played a significant role in the quarter's success. By executing supply chain savings initiatives, receiving a $10.0 million insurance recovery related to the broth recall, and benefiting from lower commodity costs, TreeHouse Foods was able to increase its gross profit margin and Adjusted EBITDA margin.



The acquisition of Harris Tea in early January 2025 was another key ingredient in TreeHouse Foods' recipe for success. The deal was accretive to both Net Sales (roughly 4%) and Adjusted EBITDA in 2025, indicating that it contributed to the company's revenue and profitability. The acquisition also made TreeHouse a stronger strategic private label coffee and tea manufacturing partner to retailers, as it expanded its manufacturing capabilities to include sourcing, blending, and packaging. Additionally, the customer mix of Harris Tea aligned well with TreeHouse's current mix of business, which is focused on retail and foodservice.



In conclusion, TreeHouse Foods' Q4 2024 earnings call was a masterclass in strategic decision-making, operational excellence, and acquisition integration. The company's ability to navigate a challenging macro environment, execute on its strategic initiatives, and deliver strong financial results is a testament to its management team's skill and vision. As the company looks ahead to 2025, investors can expect a continued focus on margin management, efficiency opportunities, and strategic acquisitions, all of which should contribute to a recipe for success.