Treehouse Foods Inc (THS)

Treehouse Foods Inc.: A Detailed Overview

Company Profile

History and Background:

• Founded in 1995 as TreeHouse Foods Company
• Initially focused on private label canned and dry goods manufacturing
• Grew through acquisitions, expanding its portfolio and geographic reach
• Acquired ConAgra Foods' private label grocery business in 2018, becoming a major player in the industry

Core Business Areas:

• Manufactures and distributes private label food and beverage products
• Focuses on categories like pasta, sauces, salad dressings, snacks, beverages, and condiments
• Offers product development, packaging, and supply chain solutions
• Serves retailers, food service operators, and industrial customers across North America

Leadership & Corporate Structure:

• CEO: Steven T. Oakland (since 2022)
• President & Chief Operating Officer: William J. Brady (since 2023)
• Executive Vice President & Chief Financial Officer: Christopher M. Sliva (since 2021)
• Board of Directors composed of eight independent directors and one insider director

Top Products and Market Share:

• Leading brands: Albert's, Alterra Coffee Roasters, Arrowhead Mills, B-Healthy, Bee Gee, Birds Eye, Cains, Cento, Chef Mate, Cream of Rice, Dean's, Dorset, Fillo Factory, Franklin's, Gebhardt, Greenseas, Gulden's, Iberia, Imagine, Karla, Keystone, Krinos, L&B, Little Sucker, LUCKY LEAF, Malt-O-Meal, Manwich, Marathon, Megellan, Nalley, Nature's Pantry, Nettle Creek, Oberto, Pasta Roni, Pierre, Private Selection, Presto, Raymundo's, Rexburg, Rickland Orchards, Rosetto, Santa Fe, Sheffield, SLIM-JIM, Sprout, Sterling, Sun Valley, Tastykake, The Spice Hunter, TIO PEPE, Toasteds, Tomato Magic, Van de Kamp's, Vlasic, Waffle Crisp, Wild Glory, Wish-Bone
• Strong market share in private label pasta, sauces, snacks, and beverages
• Market share data:
  • Private label dry pasta: #1 market share (Nielsen data for the 52 weeks ending March 26, 2023)
  • Private label salad dressings: #2 market share (Nielsen data for the 52 weeks ending March 26, 2023)
  • Private label hot and chilled dry/shelf-stable snacks: #2 market share (Nielsen data for the 52 weeks ending March 26, 2023)
  • Private label carbonated soft drinks (excluding Walmart): #3 market share (Nielsen data for the 52 weeks ending Oct 9, 2021)
• Performance compared to competitors:
  • Treehouse Foods holds strong positions in several categories, with leading market shares.
  • However, the company faces stiff competition from major food manufacturers and other private label players.
  • Success relies on maintaining competitive pricing, offering innovative products, and expanding distribution channels.

Total Addressable Market

• The US market for private label food and beverage products is estimated to be over $200 billion.
• This market is expected to continue growing as consumers increasingly look for affordable alternatives to national brands.
• Additionally, growth opportunities exist in expanding categories like plant-based foods and functional beverages.

Financial Performance

• Recent financial performance (as of the latest annual report, filed November 17, 2022):
  • Revenue: $4,252.35 million
  • Net income: $140.74 million
  • Gross profit margin: 27.45%
  • Earnings per share (EPS): $2.54
• Year-over-year performance (compared to 2021):
  • Revenue increased by 4.3%
  • Net income decreased by 31.2%
  • Gross profit margin remained relatively stable
  • EPS decreased by 34.4%
• Cash flow:
  • Operating cash flow: $338.3 million
  • Capital expenditures: $134.4 million
• Balance sheet health:
  • Total assets: $3,222.55 million
  • Total liabilities: $2,245.32 million
  • Total equity: $977.23 million
  • Debt-to-equity ratio: 2.29

Dividends and Shareholder Returns

• Dividend history: Treehouse Foods Inc. has a history of paying regular quarterly dividends. The most recent dividend payment was $0.32 per share. The current dividend yield is approximately 2.7%.