TreeHouse Foods Reports Fourth Quarter Profit Amid Sales Decline

TreeHouse Foods, a private-label food manufacturer, has announced a turnaround in the fourth quarter, reporting a profit of $7.5 million, or 14 cents a share. This is a significant improvement compared to last year's loss of $23.4 million, or 41 cents a share. Adjusted earnings also exceeded expectations, coming in at 77 cents a share, surpassing the consensus estimate of 72 cents a share from analysts surveyed by FactSet.

However, the company faced a decline in sales, falling to $910.8 million from $956.7 million last year. This figure missed analyst projections of $925 million. The lower revenue was primarily due to lower volumes and a weaker mix of products in their retail business. The company experienced supply chain disruptions at one of its broth facilities and in its pretzel and cookies categories.

Furthermore, planned distribution exits in its in-store baker and coffee categories also impacted the company's overall performance.

Looking ahead to 2024, TreeHouse Foods is projecting a revenue range of $3.43 billion to $3.50 billion. This is comparable to its revenue of $3.43 billion in 2023. However, analysts polled by FactSet are currently forecasting slightly higher revenue at $3.56 billion.

TreeHouse Foods remains optimistic about its future prospects despite the challenges faced during the past year. The company's strategic divestitures have contributed to its profitable performance in the fourth quarter.