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THS Reports Preliminary Q1 Results, Keeps FY25 View Amid Economic Woes

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TreeHouse Foods, Inc. (THS - Free Report) has announced a series of internal restructuring actions aimed at improving operational efficiency while also reaffirming its financial outlook for fiscal 2025. The company maintains its guidance, projecting adjusted net sales between $3.34 billion and $3.40 billion, and adjusted EBITDA from continuing operations ranging from $345 million to $375 million for fiscal 2025.

These projections take into account a partial-year benefit from recent cost-saving measures associated with the company’s efforts to enhance operational efficiency. TreeHouse Foods expects the full impact of these initiatives to be realized gradually through fiscal years 2025 and 2026. In addition, it has shared preliminary first-quarter fiscal 2025 results, with adjusted net sales expected to reach at least $792 million and adjusted EBITDA projected at a minimum of $52 million.
As global trade conditions and tariff uncertainty continue to evolve, the company is closely monitoring the situation to assess any potential impact on its business. In 2024, THS generated roughly 5% of its net sales from international markets, with the majority coming from Canada. Management highlighted that almost all of its finished goods currently comply with USMCA.

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THS’ Cost Cuts and Structural Changes Underway

At the heart of TreeHouse Foods’ strategy is a push for efficiency. The company is reorganizing its internal operations, including eliminating about 150 corporate roles and removing a key leadership position as part of broader structural changes. Executive Vice President, Business President and Chief Commercial Officer Scott Tassani will exit by the end of May, and his role will not be refilled.

These organizational changes are designed to streamline leadership, reduce overhead costs and accelerate decision-making processes. By simplifying its structure and optimizing cost controls, TreeHouse Foods’ aims to enhance competitiveness in a fast-changing consumer landscape. It remains committed to driving stronger financial performance and long-term value creation for its shareholders.

Wrapping Up

TreeHouse Foods is actively working to strengthen its business by implementing cost reductions and organizational changes while maintaining its fiscal 2025 financial guidance. Its focus on improving efficiency, streamlining leadership and driving long-term profitability highlights its clear strategic vision. However, the company is not immune to the ongoing economic uncertainty and trade tensions. As it navigates this transformation, investors should closely monitor the next few quarters for signs of progress and improved execution. At present, THS holds a Zacks Rank #5 (Strong Sell), signaling caution in the near term.

The company’s shares have dropped 35.2% in the past three months against the industry’s growth of 3%.

Top Food Bets

United Natural Foods (UNFI - Free Report) , which is a distributor of natural, organic and specialty food in the United States, currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

United Natural delivered a trailing four-quarter earnings surprise of 408.7%, on average. The Zacks Consensus Estimate for United Natural’s current financial-year sales and earnings per share (EPS) indicates growth of 1.9% and 485.7%, respectively, from the year-ago numbers.

Utz Brands (UTZ - Free Report) manufactures salty snacks under popular brands and has a Zacks Rank of 2. UTZ Brands delivered a trailing four-quarter average earnings surprise of 8.8%.

The Zacks Consensus Estimate for UTZ’s current financial-year sales and EPS implies growth of 1.2% and 10.4%, respectively, from the year-ago numbers.

BRF S.A. (BRFS - Free Report) raises, produces and slaughters poultry and pork for processing, production and sale of fresh meat, processed products, pasta, margarine, pet food and other products. It currently carries a Zacks Rank of 2. BRFS delivered a trailing four-quarter earnings surprise of 9.6%, on average.

The Zacks Consensus Estimate for BRF S.A.'s current fiscal-year sales indicates growth of 0.3% from the prior-year levels.

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