THS - Earnings call transcript Q4 2021

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Welcome to the TreeHouse Foods' Fourth Quarter 2021 Conference Call. All participants will be in listen-only mode. After today’s presentation there will be an opportunity to ask questions. [Operator Instructions] Please note, this event is being recorded. At this time, I would like to turn the call over to TreeHouse Foods for the reading of the Safe Harbor Statement.

P.I. Aquino

for today. thanks and morning, joining us Good This available, in along issued a treehousefoods.com. the which is press released, at with website Relations of morning, section we Investor our the slide presentation

like to we company's may today's differ XXXX. Harbor These Act and on intended provisions expectations to Before and the are risks we'd cause advise projections statements. actual that that concerning Securities statements call contained the all results within fall of the Private statements from you based risks on to of current Information materially are and made involve forward-looking filings forward-looking Safe our is Reform begin, uncertainties SEC. those in with the Litigation

an during A measures Mr. measures now In press these turn on non-GAAP discussion adjusted today's can of President, today's release addition, direct Oakland. website. CEO our will results our basis. be discussing we reconciliation comparable referenced be and Steve their operating to the to I'd most and in call GAAP over to found on like financial

Steven Oakland

joining P.I. you everyone. start the Year. and morning and has today a We good to New hope appreciate good you had I Thank everyone us

details want results announced the of into our outlook, and I quarter. last get I review process Before to the on you we update the strategic that

information when of but new to will have growth transaction engaged detail Beverage are today, & a us more of have of our would that sale our we Snacking Prep or actively the in not company do informed enable higher We focus that process you to a possible Meal provide. including sale significant businesses the a to through on segment. portion We keep share we

Snacking us years operational great commitment into over long-term deal drive for progress, Meal for our & years to on better business review to excellence, business people sustainable our and Building and nearly talent. two reorganization position of and optimize strategic several our commercial effort Our the success. Prep portfolio, divisions and We're and on our growth. that strengthen ago, stabilize Beverage each delivering our invest in last positioned and follows the a

remains ourselves we future. only we the environment, how in positioning how are but today's critically strategy also for Our operate important not in

we focused quarter depth higher And businesses. said, we in consumer helping fueling operating we've growth points category summarize be TreeHouse me efforts strive all X, engine As take the us results. investing cash On away that our you With position to in driving like we through and now environment. critical future, have leaders our these for the categories, we'd our advantaged to of the strategy are been let current Slide fourth navigate turn today. to as

encouraged fundamentals label. to reaffirms the private by categories, be We strong for strengthening across continue our which underlying the demand

As we on believe the quarter, told our for to serve difficult you right customers investing focused we through as this the we that's remain last long-term. decision period,

Next, is pricing we pricing chain. sign recover strong, across which to quarter, supply inflation the In good that of continue to realization a actions our implement was progress.

seen with inflation of our have the throughout teams commercial have our peak, we believe I'm worked don't period. we Although this proud customers way

our provide incredibly around supporting level across transparency dynamic. we've of during is and a our inflationary We continue customers which Pricing collaboration much high various periods. to a pricing, of is detail greater seen with level prior than categories

additional worked December. to last our with this As effect pricing customers on I call, we mentioned our past

pricing. of effective take see the inflation virtually also action should all be We beyond the our will that further we to teams end And pricing March. will current expectations at have a of appropriate completed communications our be prepared

into operating and XXXX. I'll expected the impacted entire have are know, macro environment As today's in continue landscape and minute, challenges you cover to all the a

lead focused things service, on most address Importantly, to labor that We but will particularly and our inflation our expect back you we can recover disruption we're profitability, XXXX on to chain how control. thoughts we improve supply give play pricing, to color working very controlling think in XXXX. improve and more the steps on Bill half through will hard those out. we're everything, action of on

of approach we Importantly, path XXXX. return for profitability a more have we believe end normalized levels and to of to by the pre-pandemic XXXX in levels profit

the Slide I'll charts two related attention the on Turning supply your X, labor right, to the chain. to and to draw

about We're retain talk recruiting inconsistent. address broader disruption how we a talent. issues you companies for and other schedule attendance being greater to and give heard flexibility, attract We've these strategies, has manufacturers me has by planned sense macro increased how offering let and Like working impacting other this, hard the new creative are You've been benefits. been but us. implementing about

supply showing scheduling the inefficiency. to are are and much We Challenges we downtime time. time by take product networks not labor not scheduling, only we produce, product things from we can supply on but day encouraged can for our back by in or and will These is difficulties, the to issues some of it at chain up right issues production how produce result it. our facilities, the how improvements right a dictating seeing availability new efficiently range normal. The are get but caused across to

freight the shipping the food and in escalation through managing industry, has a impact. both From environment are twofold macro a ongoing delays. including had cost financial packaged others challenges, like we Finally, perspective,

and investing to our and said, to we ability service us believe demand more build the to those to costing right continue service that on limiting term, to line, it's things our the top to First, to relationships are of in deliver That our the products customer. near and the customer for our do all significantly long-term. second, the it's the operate plants

labor for was versus our and limited me last Revenue X. billion high above was you the Let $X.XX by down demand. declined Adjusted our customers to This latest the prior our of margin the X% $X.XX supply a chain. X.X% meet in decline our X% across organic challenges force due our and of metrics fourth an quarter to XXX guidance guidance the on take revision. end EBITDA year basis quarter in key with Adjusted now of through EPS fourth just was Slide of line points range. to discussed basis versus on the ability of the diluted year,

day your to how and I make to everything much focus it environment. I sure guidance challenging your Before want Thank the over to express let me and we open hard Bill? the that, this to to afterwards in I our back turn you detail, gratitude ongoing appreciate you it operating the to call I'll to come work results over you questions. cover few as we comments day more their turn Bill, let customer, our TreeHouse well out. our want serve with effort, for help and a year. my and particularly for know dedication, as With outlook to before team give doing Bill us in in agility. for you're I closing

William J. Kelley

Steve. for you, today. joining Good Thanks morning, Thank us everyone.

scorecard. forth employees. Let me work you you Steve's dedication thank on Slide with start our appreciate to TreeHouse by X continue start echoing could and comments day. We I'll every put a to hard the as our

again accept remains refrigerated December just our service. dough sales noted, declined EPS packaging. oils, X.X%. Pricing our we macro guidance. by and labor to Volume with of year-over-year. organic details of was was Like has on quarter fourth most due pasta significantly our guidance points division. above demand incremental quarter having reflecting an drivers by midpoint our XXXX, meaningful and supply we we and Slide impacts. declined could the been than much Fourth our strong branded contributed contributed had X pasta adjusted higher which Prep our acquisition XX% X.X revenue $X.XX, compares points, and Because peak, challenging, constraints. of allocation increases closed to driven Steve also in favorably The in mix Meal $X.XX Meal production X.X coffee business environment latest billion and Prep, pasta of volume is branded range quarter and durum, seasonal billion. to billion. and top the As $X.XX the line is $X.XX This revenue fourth constraints

Pricing However, pleased X.X% and beverages on driven and organic X.X% provided waffles X.X%. categories over with down X, how Slide year. channel. frozen On the drivers by Snacking packaging. past pasta integration mix we the the contributions well gone from crackers and net with continue wheat allocation. sales Each was the and in declined was and we to the like be by of dollars branded has oils, change the business Volume year-over-year. represents rise revenue in bar sales

Our to measured as constrained improving retail demand. syndicated headwinds label with data, and declined chain the private is supply our service which million, channels, $XX ability to labor tracked sales

e-commerce retailers. up slightly million XX%. year-over-year channel food-away-from-home to performance which down better We channel includes value, channels, were major as club, The $XX and the within on continue unmeasured specialty was revenue see improve only sales a basis. continues or to Unmeasured

Finally, quarter co-manufacturing low absorption, Slide X% in and drivers. $X.XX levels after service and provides mix, in a grew the fourth for last were including allocations of other our was versus X XXs. year, and Volume profit negative most quarter. the the

we're Although pricing an negative net quarter, improvement. now a was of commodity $X.XX seeing costs, in the or where PNOC

we SG&A pricing supply cost than Fourth has our focus continued of Operations a by teams $X.XX higher on through chain spending. to by and $X.XX, negative which recover to efforts favorable labor challenges, was Our environment. more as continues P&L. shortages the inflation commercial quarter was explained controlling created flow manufacturing

billion more reduce year flow and strong balance and free taxes yearend in XXXX cash paid made billion to we have XX flow the interest the the debt, Last more $X improved about cash was $X prior we on total. versus that revolver. $X.X year. cash together utilizing progress sheet. at in Finally, than Liquidity million finishing In Slide than we've debt. demonstrates year, our contributed and million our generated $XXX with of between $X.XX down

to this episodic you normalized not actual The which to but Slide this of these now give reflects a slide sense shared XX, in more how rather do challenges we back be strokes results. was to November, of level in nature. impacted our in structural, of factors a slide plan broad profitability. believe Turning XXXX's you with We

we're We I our underlying a basis. million for business over With us earnings how is that EBITDA before on environment share our adjusted opportunity as to me XXXX million or have XX. share. continue confidence about just label that continue an first that $XXX and believe Slide to strengthen thinking that demand see power the out for lay backdrop guidance, we'll $XXX in private the anticipate EBIT to about on gain We let we macro giving

expect We the do our and year levels reflected demand. the progresses. ability also and in improvement to allocation. XXXX, least will on half supply recovery labor the remain continue that first This meet of benefit our difficult to P&L. Today, through at year. are half our anticipate of service as pressure of we continue well about of also chain expected the the We XX will to are categories but our Inflation efforts is the seeing now in price all

action and provided freight guidance. commodity As prepared we and discussed in late inflation escalate we those communicate current our On earlier, affected pricing expectations, we've to Should recover pricing are will to XX, next implement our our annual March. further costs. be Slide beyond

We expect is a for growth estimated of abbreviated $XXX between metrics. year. more $XXX is we year in approximately EBITDA least net set be XXXX. to to of XX% million projected sales guidance to provide million. be $XXX This the CapEx Adjusted million at

rather intended to think give to profitability not chart quarterly the unfold imply In but year you and more will how is roadmap help of improve. guidance, will addition, about a our

by start me this talking least XX% at Let our drivers growth line of top year. about the of

customers efforts terms our we job the do year. the low pricing, working In can do collaboratively serve we will digits with drive line excellent all an growth as as Those double of pricing to top we continue consumers. to in start we

have a effective will that communicated largely pricing taken was of digital at March. We the end be and

the year to We on. expect pricing goes build as

of of terms put levels to least In this, the supply the impact down, volumes on continued half year. the the that most volume, of anticipate to disruption year. service continue of our chain the will is pressure and at Because expected impact of labor through likely pricing early muting view be on we first in

gradual chain are expected supply some release in volumes. the operations initiatives labor, and improvement anticipate to of in half service pressure both a back levels and Our the we and

recognize our In the and year profitability guidance, me the to smallest start let Turning quarter think produced EBITDA supply to XXXX typically impact in current the margin of disruption you environment; of gains profitability extraordinary and ongoing on costs first the year sell give you perspective. and progression. by thoughts two some of will be impacted XXXX, we end issues; chain one, how the and earnings will an I'll adjusted further reminding adjusted the first higher [ph] at our the quarter EBITDA quarter, each the two, first the this inventory was by peak is labor significantly from from during and of that disruption. that of about the

below be will further. As we EBITDA a result, prior performance margins the compress quarter is that historical that one our well EBITDA and In low as as fourth year. expected be first expect could margins to levels, QX, of

adjusted our in I XXXX way of out of quarter margin am environment. As higher first EBITDA will a work was the our we X.X%. cost this reminder, confident

are will shared environment what I'm controllables. we the the when While the I can the and we can't control to earlier, normalizes, Steve and that confident doing disruption macro actions that initiatives address predict

noted improve. These the were expand volumes throughout XX% year on and support of the belief in back I approach will margins begin we EBITDA average half adjusted to earlier, pricing our believe to EBITDA to pre-pandemic to anticipate that XX% servicing range. which margins XXXX. levels, the factors that As build will In I

remain of Importantly, business of fundamentals long-term intact, label is the and our earnings we believe power private the healthy.

Steve, As we strengthen, and continues inflation we turn abates the closing to comments. opportunity better adjusted as normalized of back that, as mitigate enter we we to XXXX, supply profit believe of of and to exit more like return $XXX and With disruption, demand an that around labor million for chain and it Steve? XXXX in to impact I'd have EBITDA. to levels

Steven Oakland

close about commenting how by across Thanks, encouraging remarks today, my and to Bill. today that we're our I important demand strengthening opened on the is. I'd talking frankly seeing categories. like

transformational that disruptions. the on difficult impact journey. are COVID you of It's for given to We the a work see

customers We've our to are that a periods successfully we exceeded continue health history. our confident and We businesses the prioritize company's our operations. organization. commercial are to and We've pricing our improving employees. with built XXXX, far inflation to the retail executed align within that reorganized we world-class recover better of prior safety we In

invested in term retail the expense label opportunity. growth because attractive at of private profitability. the near this our We've long-term key for for We customers our fundamentally service remains customer also an strategy all a done and

that The and that chain the on changed supply private perspective, to is households included positioned are line their a we growth shared From total. dotted customers' normalize. has with households the label we've by $XXX,XXX XX, line years the line recent right earning consumer in represents We side a growth Private Slide you orange our label share threshold. consumer of slide their included above past, who uniquely a demand things year, retail we've own below as that green chart comments the brands demand on their The XX. label of indicating how both on versus growing driven while Label and private the ago. for two a brands. presence are represents is customers participate We've strengthening in few and focused are private

progress an we've both order As our been which have one you been demand predicted up, over the could on This why the flow transformation. the the moved can see, ups last encouraging and in indicates two our we've Pre-pandemic, strength sign. December, is years. and downs seeing in making is no

transitioning by to point allocation, potential a categories represents demand longer we on TreeHouse. are While that on focused for no we're we the where have encouraged

demand driven demand. cost disciplined we so, year we business our our end, believe strategies results we and are on as a we executing In believe that us service to our So improve maintain this to we XXXX by we will XXXX. the our doing and By return will focus and meet customers ability a enable look profile. growing actions to exit our have move to ahead, into be and path the profitability on meet as normalize

call customer Our that, in drive their your sustainable providing for questions. service platform a up demand, for growth our to open ability With our for the Operator? are to investments let's us TreeHouse. supporting long-term

Operator

[Operator Instructions] Stifel. question And of a your Growe from Chris line comes first from

open. Your line is

Christopher Growe

you. Good morning. Thank

Steven Oakland

morning, Good Chris.

William J. Kelley

Chris. morning, Good

Christopher Growe

I get I of to could, hi. year. Hi, -- EBITDA just of you a the margin just had progression that I better through expect question kind if sense a

thought EBITDA by looking decline of accelerating. first Bill, So cost be get degree for about I because effect sounds year. you factor volume some quarter. how dragging I inventory, was first quarter, sense is seems to the quarter you're to in for overall first us that? Is of trying you of on surprised be or So margin the in to It be inventory expect helpful well kind mentioned the for I'm higher a elasticity price just better a it it'd that margin? pricing what's that understand a balance EBITDA in as like the the all decent that price should the on

Steven Oakland

Chris, comment color Bill's little then progression on on we'll and comments, let Bill put the more maybe I'll a here.

the inventory in remember we that America's a strong chain remember if remarks us. know hit North small system, in December got first entire you quarter demand across Right? incredibly The So about you prepared what, with the the quarter as again when and first quarter. very we've Bill's we first quarter. backdrop, as and talked a produce quarter incredibly is comments, for signal But hard remains for Omicron January supply for that's to for from that historically our the system exactly

the will disruptive of So all that macro that first quarter inventory, disruption. of and sales then cost, burden that those carry

Right? bought think we ingredients keeping shelves that, their know, in efficiencies, long-term, it the do pantry off incredibly quarter there is stocked customers spot of planning quarter. best like then expensive private and overtime, the freight, the thing consumers times over of for we where stocked label in contracts. our was all but things We the You because were the

build to want pricing? you Bill the about maybe So on talk

William J. Kelley

thanks thanks for Yes, question. Steve. Chris, your sure,

Just Steve nicely the just impact and mute that come talked to pricing into half year, just to as add to cost about the constraints but won't and the with going that through. of wraps you additional into first a higher inventory the is first color, quarter lot that the see

that all As benefit it will think get of We'll as supplier online, far our think taking. of the initiatives improve. service year the from we unfolds, labor back as and we will we're

we be volume is going but for the that's challenging first expectations and the muted do forms quarter to helpful environment, half. first a pricing essentially and the So is the anticipate what our and

Christopher Growe

it Okay, let's and place, you're to that as this roughly next today XQ, to to pricing, going so then inflation, like be to from to followup maybe just the pricing roughly call the of offset such Q, Q? four should see little end and you going you a inflation be three level it by sufficient call bit, round March, it that in of would forward able have with of as point, offset

William J. Kelley

our we're to be will pricing have could But obviously, the that we increase, that as enough guidance, obviously Chris so be in effective taken. your in inflation point, market forward. that anticipating, the actions there what's not we our and in not more and be be offset we're our will certain go March won't inflation in to need That's that to

Christopher Growe

all appreciate color. you I Thank it. Okay, that for

Steven Oakland

Chris. Thanks,

Operator

line the Barclays. Andrew Lazar from comes from question next Your of

open. is line Your

Andrew Lazar

Good thanks. Great, everybody. morning,

Steven Oakland

Andrew. Good morning,

William J. Kelley

Andrew. Hi

Andrew Lazar

you about higher servicing near I term. were invest to business even you talked meant, Steve, customers decision the it sort on in the guess win last in and to the if the how new given company's I Hi starting customer, of first cost there. call, to and continue off, such, think

how being And sure I in that read think than make some about it distribution phenomenon sort the all corresponds or a to you just is a a been understand supply the comments that I'm earlier and distribution losses doing? that greater that gains. might I bit, I to business it release, new of or little trying talked think want about I it the I constraints sense to Because on to you've simply related based get else? investment up picking of just that something

Steven Oakland

simply that's Yes, certainly, two I things. think

things ended, it through I just what quarter, think and when didn't. for things into just I start it's came what the think rattled timing when and in fourth

year, business of is business larger this in going Our our into into XXXX of book XXXX. book than

business fulfilling us achieving the Now, the it's really is order challenge that or not flow, demand.

year putting that can so new it Now right and would fulfill in place key the businesses. those be the this for us we fulfill resources

new We and are not to today, now business really more so cautious cautious not being disappoint take to disappoint us to and the that right them. we're but customer there's available probably

Andrew Lazar

playing in terms you label the how if track of market others to similar worse mean, us universe versus within are specifically. And assuming harder having for of it your direct see of issues share sort not sort out competitors? do I your share because TreeHouse I'm is private

Steven Oakland

sequentially is all when That last few wallet, challenge, macro private the about So right? the share seen talk we you've over improved the label months.

the the If think weeks you do look very number. credibly that last and in our affected see ability the last sheer to inherent overall four eight label during all long done Right? gain for steady pandemic. our think at actually will has we reflected I complexity we industry, that's time the in fulfill return demand of a private of in weeks, the So in our I that eight industry, share, the sense. macro that's a haven't something

make is on is have not dependent us share. do that we me fact the to are coming with specifically sense? sign categories that continue Now, for coming in or we the can they're categories that growth that the are Whether the Does accept us and to businesses fact them to But business, want, to that opportunities that coming we right the category the capacity. the a of we us. now win that the individual TreeHouse, core

Andrew Lazar

much. number least looking arrange last maybe Bill, to this inflation that the absolutely. of Yes, you're at year, And type thing, the a Thanks it today? so for as very stands

William J. Kelley

Andrew. thanks, Yes,

Obviously, take other in comment leave the that down Our teens taken if the further you our actions, revenue almost we service on what will we're mid just for -- reported or inflation that that before is quarter, included, range And just over some that expecting. just managing quantify higher, pricing internally. is with we're us the along X% really that's have revenue, X% you initiatives on X%. high up to of would if to was

was but drag on in a us So the was revenue quarter, significant strong. it pretty

Andrew Lazar

if That's the serviced you have could all saying? demand you're

William J. Kelley

right. That's That's correct.

Andrew Lazar

you. Thank

Operator

the next question from Your of comes is Chappell Truist Your open. Bill from line line Securities,

Stephen Lang

Hey, Stephen Thank on good is morning, everyone. kind for Bill Chappell. for taking… of Lang you This

Steven Oakland

Good morning.

Stephen Lang

Good morning. And the kind how thinking I magnitude how are of that better you sense guess supply similar and a kind of improving following XXXX? the [ph], up pace kind see are on EBITDA where Andrew's give you can issues chain us in of XXXX of question sense, and of regarding the kind freight do throughout like your about greatest Thank and that? then and the Is to those margin kind you you. of of improvement provide

William J. Kelley

one. exactly take this you. I'll your you that's thank for right, question. Thank Yes

will to we said, to that I expect and high-teens mid- XXXX. As continue

We service and then impacted our pet year. to commodities. labor to we're that Some Coffee, will say cartons. throughout going wheat, that sense labor the about would of things. those well by finally, up I have we are have be a help account that to is improve obviously oats, bit, packaging. going by bit be volatile. that. two and be increase market then for and durum a and continue That's continue a to to to Think do have that's Freight as resins driven all we And in just continues making

Steven Oakland

I roughly past. it, and approach have we cetera. on people think, in in we're have across different We're touched require creative support more it plants, to scheduling. to going more XX right? that's flexibility trying comments, to in our X,XXX people facilities, the to Bill than a his our but associates, part-time how our going with We've going We're And plant has in got et be

and I we've ourselves So quite system. pilots and they're up we're to encouraging, employer so be be workforce. our will parts trying of different forward, they teams but that frankly think are in and the got early hourly that That are different tests attractive position on going for going gearing and the to workforce

Stephen Lang

much for Thank you so the color.

Operator

of Your comes Carla from next Casella the JPMorgan. from question line

open. is line Your

Carla Casella

Hi, Can net us my today covenant facility. your thinking question is and tell where if just it the leverage on where stands you covenant that amendment the, bank and it's may mentioned on go? you you're a

William J. Kelley

we amendment. Carla, Kelley. that of in finalizing are final stages Hi this Yes, the Bill is

file to flexibility, thought feel cash liquidity. over it get $XXX with the We you year ended was add just and year, in expect prudent, we or EBITDA if just that and challenges maximum next the first that so, amendment. We given half obviously, over of through we comfortable our but in with very XX-K the in include I just in go have in the with billion the our as $X say the to details day we will the would liquidity the million we the the revolver.

about want to the that take that add have. step manage pretty through the So and we but flexibility we strong do additional need that, to challenging feel we times we

Steven Oakland

cause didn't investing be us in the today make in us little help might want wouldn't put to a more color there inventory, et predict cetera. a can't To Yes. would which serve that that to that, we decisions situation we have that to to the customer, be

So wanted will, we to we just have but sure it case in flexibility. that wanted that We're not that happens.

Carla Casella

the is that am about current stale? times is or that's X.X And changing Okay, my great. you're number -- the covenant I

William J. Kelley

No, that's X.X correct. It's times.

Carla Casella

is is net And or secured it total leverage net? the

William J. Kelley

are so adjustments It's agreement, there in as our there. defined current

Carla Casella

Thank great. you. Okay,

Operator

Credit from Robert question of last the from And Moskow line comes today the Suisse.

line Your open. is

Robert Moskow

few here. than million greater was finished thought million. to Hi, guidance the quarter $XXX and over well that $XXX be a I questions flow I think for free cash last you

receivables there? Because I up improvement Did thought the the were on against caused you program? change what that? So Did limit you you extend it? bumping your

William J. Kelley

did it then the for actually and the We Hi, did the labor and quarter well. And expand by Thanks constraints We facility. our Rob. was some including be banks as customers could to in were through. anticipated. of more more the we AR given strength question. inventory expand obviously, those than to that make [ph] we we in we've try sure shown and and of that just careful in-service all for trading stronger demand pieces, We we account had our manageable guidance were

Steven Oakland

great remember, I more when right guided, that that us, were was of frankly, starting month we Omicron right? a time. knew some I quarter. it's one Quite we the you cash, and put could. be going into inventory, cash little it I'd rather of my that build into if we'd in wish if a to have to turbulent hit Yes, were see we warehouses We now just but So to

Robert Moskow

Okay.

what should the receivables you So -- much program, extend how Bill?

William J. Kelley

was higher prior $XX higher million year. and It million $XX QX than than

Robert Moskow

Okay.

million that now So because $XXX $XXX so like of -- now million instead at the was million? was limit $XXX before, you're it means

William J. Kelley

$XXX almost. million

Robert Moskow

then aspects think of that there's I bars? is considered is snack write-down Okay. And one assets, And of that bars growth of the a question, the another the business?

William J. Kelley

recognized the bucket. to been $X is business. write-down business We our related It to PPE was the in for in us. had considered It Thanks the that for revitalized question. a category of million related bars. challenging about again that's that a Obviously,

a then eating of and As huge had And was the those a COVID current the categories in as our obviously, great on-the-go it was that you environment, whole kind show recovery. of don't imagine restricted occasion projections and can impact. was impacted XXXX one

that so in a still why working will and recovery think the accounting that's rules in imply. prudent be thing And as vertical the the straight We're We write-down line. the still impairment business. we did ended

Steven Oakland

that those impaired think and that assets category. to here. bars the category the yes. and We a happen of your We is growth are to in have assets the Yes, are in not legacy great some some there segments future were assets, bar those are that Rob, point,

So, the million know, much that. there. reflects than impairment a business as particular you bigger The it's situation $X

the on think there focus we a not but assets that So within total structure category, long-term. be are that great will

Robert Moskow

less? bar million Okay. you're have how of the for so rapidly what's Like the like much But pretty And a snack noticed bottom, business recovery the growing or it are you size like that recovery? a maybe a holding in expecting is business brands back? bars, it branded companies $XXX other us, off that is I

Steven Oakland

No.

I would you, tell Rob. what Here's

the bars, grain And bars There's capabilities you'll variety those If to bars and bars. fundamentally everything all from the go there's of shelf, new different are right? make the you bars to to bar of to fruit crunchy a different. healthy look

reflect healthy things that our and the have we may bar business in generations so have some be that are earlier we less those going projections forward. assets of And lower business that some and

that also in more that are business. have assets of part some the We bar contemporary

for micro the we legacy is parts, that healthy and complicated for a TreeHouse that that not can the So the $X get accounting business the required to, and into details We are rules you as the of macro if has that are business they the just forecasts than million write-off. less bar It's for need other I in The it's healthy as parts are one. of have segments a some think bar business but issue. we bar don't some others. assets a

William J. Kelley

Rob, And for it's million business a us. $XXX about

Robert Moskow

designed transitory? is pricing but question, supply considered the not that the to offset Because are costs, that disruption the it's right? Last thanks to taking designed for offset chain is you're those Oh, that. inflation,

Steven Oakland

are pricing. for labor, things, example, say that think the pricing. our the in ongoing would are is with component so the in would order but that included that yes, I And say, in we are Spot that of are, we going we we our a things not, component is things necessary there think and not. to are to long many freight, Things that things are other believe cost-to-serve we permanent transitory position term are cost-to-serve us like a think be I have for pricing.

Robert Moskow

the Okay. the for chain of much inflation, assume bar? costs some incremental should disruption, much portion is commodity how commodity if chain the and are doing we how math supply showing inflation supply because we're disruption -- a that bar pricing you're the of bars on then all well, showing is the

William J. Kelley

transitory charges is going to a the in our labor comment piece percent I as hourly mean full I of quantified digits about see into for those and think I versus to that's the as we step-up, only about freight see other in well. the going as XX% in component double and show terms on right. well that pricing, it structural, going The so year QX, that's that just be the right. think you just up it's you in

to dramatic lean make be We to steps offset and we're some there will of our we continue, obviously, organization programs and will what to have can operations to normalized improvement the savings continue taking the bit out from a sure in inflation.

Robert Moskow

Okay, don't lean it out too far.

of You've got lot food. a make to

thank All that's So me. it you. from right,

William J. Kelley

Rob. Thanks,

Operator

remarks. the question-and-answer conference for Oakland I over our Steve concludes to back This like closing turn to session. would

Steven Oakland

stay soon. and say it's for We to to forward like us with know a we to all just I'd turbulent everybody look today. hope you to Well, thank day. you being safe, great environment, and talking we you a Have again

Operator

This concludes today's call. conference

may disconnect. You now

TreeHouse Foods (THS) 14 Feb 222021 Q4 Earnings call transcript