Earnings call transcript Q4 2022

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

Operator

Welcome to the TreeHouse Foods' Fourth Quarter 2022 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 that 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 statements.

P.I. Aquino

you us thank and morning for today. joining Good website our and which posted this of available morning, earnings release issued we our section Relations of Earlier our earnings deck, the Investor treehousefoods.com. at within are those

and XXXX. Before on the that forward-looking and we may Reform Private projections are to Securities statements you safe current the of call all fall today's Litigation our begin, within to and like These on forward-looking harbor risks advise based uncertainties would actual intended cause we expectations differ statements to are made from provisions materially involve Act statements. of that results

portion Information the X, of company's Preparation concerning business. On in the October contained XXXX SEC. risks those filings we with significant divestiture our is Meal the completed a of

be found on direct and their the to continuing As an non-GAAP reconciliation be our most the A of such, earnings results can adjusted in of measures we'll deck. basis. operations today's measures appendix release comparable GAAP discussing

me President, Mr. With that, and our Oakland. now to over let Steve CEO call the turn

Steve Oakland

today. P.I. us all Starting the transformation our in continuing TreeHouse. you, and quarter to our report fourth pleased progress and for strong thank and strategic of here joining for outlook on XXXX with you our be Thank to I'm beyond.

we've that X, I'd from like shared messages Slide the key away On call. you to today's take

will margin in results. to snacking deal valuation. significant higher strategic beverage portfolio, major compelling improve our private higher a a our our consistency milestone October, reaching at accomplished us This our and of of and as portion a execution sharpening the XXXX, Meal by reshaped our label a business. early we've divesting great Prep growth, enable First, We focus a in business

evidence label in business. Second, quarter outperformed our broader results of the as are private we core terms unit retail market across of this growth our execution, improved fourth

X% range $XXX to reflects adjusted represents to TreeHouse, XXXX improvement, profit top X% opportunity approximately $XXX the of with for in to we million. new and midpoint. a EBITDA the including of to the line million capture rate guidance This as growth growth significant at compelling our expected of Third, XX% year-over-year expect a be

a we portfolio adjusted beginning strategic EBITDA across constructed the ambition grow XXXX, today. X% years. snacking revenue we and growth believe to label private drive flow purpose basis We to deliver long-term the plus three at on as have beverages. for free And Fourth, in on annual and X% least X% $XXX and based XX% an of million clear cash that next its can to

in We positioned has and drive and have right shareholder growth and portfolio the team place our never to better value. sustainable been win

Adjusted the now inflation. X, guidance pricing range. Slide driven $XXX to turn summarizes quarter recover results. $XXX grew top quarter of million was to our of fourth Let at the to Sales by fourth me which million, in end XX% EBITDA our

and margin represents thank a organization, work dedication point EBITDA all year happen. want the in of XX% our proud finish a I the and to of sequential improvement their for basis. this Importantly, very on to of TreeHouse I'm entire strong making XXX hard basis

to the putting minutes context Before more our in quarter, retail you fourth spend performance Pat I turn over I a of want it on to with to few color landscape. the quarter the give rest

and two past As unprecedented pricing we've recover the know, years, escalation over inflation. we all that seen to input cost

about as quarter, entire had was the pricing retail input everyone up recover across higher fourth XX% costs. has the to During landscape,

volumes across how we've a look On faring channel comparison. an industry. apples-to-apples use provided are We the to give Slide measured data at X, you

you colored high wine we've X% operate. Units we to by positive. narrowed indicated the as while data private declined in unit bar gold, in those to a result just slightly and in which a total outperformed see When prices. national shown set was X%, categories the capture total can basis right, You label for on move over of edible the consumption declined brands

channels. TreeHouse that X.X% was will unit core walk specifically to did measured almost better than unmeasured point like the than measured through channels. more that. comments. In our I'd our in the units growth our for fourth his out you retail and both retail in within quarter, business take X% Pat grew sales

we've today's to and value on value gain are continues The momentum, seeking gains, pressure for Shoppers supporting last proposition share XX the private consecutive consumer which label is now the seen unit weeks. significant.

to to our our business in demand. that We continue invest capturing support customers in

take through turn over guidance. Pat and quarter it fourth to you With me our that, to let

our we're business. we've into questions. you how we'll build on going translates long-term the for the Then and find made with deck rest our end the the today. the shelf shopper outlook the at back that to progress I'll basket share the and call gaps price up You'll to your prices, how Pat? in of appendix to come of on that typical slides macro are open

Pat O’Donnell

Thanks, to team today. and Steve, first company TreeHouse change went a we deal my past We appreciation great the everyone. to and morning, want echo through of proud I'm are good year. the I this of

the QX Slide Pricing Steve reflecting our to start and efforts grew recover and was mix on and revenue X noted Volume as earlier, in XX%. to X.X% recover I'll accelerated quarter. further cumulative up declined inflation quarter fourth inflation. in XX.X%

case X, we Slide by our a look provided at volume channel. On

retail we business As Steve growth. earlier, in volume measured grocery noted delivered and channels, X% both across unmeasured our core

our the reminder, of As business annual XX% grocery represents revenue. approximately retail a

worth our about service volume faced our been of It's not would chain categories. we in and growth also supply half noting, higher have had constraints lingering

volumes, by our discussed and quarter. was co-pack the last of certain exit including Pickle business primarily growth food-away-from-home offset we that the Additionally, retail

drivers. recover Fourth demonstrates contributing of be to adjusted Slide once last realized. representing points. at million our a Volume margin and quarter sequential which was EBITDA X positive of was $XXX totaled million including top the our inflation net basis to Adjusted improvement profit to versus which range. and Pricing continue guidance again, mix Turning million, EBITDA $XX in XXX of the year, $X absorption efforts our was declined quarter. commodities XX% that

I commodities things. traded a to want We number but two down, begin come the highlight have of to seen

commodities remain up; inputs half most at considered of are second, First, elevated tradable. and of only basket our about historically

non-tradable labels cost to comprised and specialty is Our of foil everything hundreds inputs, chemicals packaging, basket from and food of lids.

We see continue to meaningful this in area. inflation

the in of in inflation deflation our commodity. are Some inputs seeing offsetting we is the non-traded traded

pricing but a we are nature. much more in taking still surgical As some currently, result, it's

operations, represents declined employee supply continue bar in million retention. quarter, as invest the mitigate $XX last in The disruption and to fourth we which chain

efforts stability and TreeHouse fourth basis is labor with we line improvement System our levels on TMOS, Operating as our In continue more network the ongoing, near level. XXX point service reliability. half on about focus the Our Management and our categories target than make quarter, delivered across sequentially of progress as to service well around our

we've debt pay years, both million. with in in with over three $XXX the made $XXX reduction demonstrates and leverage times million year a than progress down used our in times last X of we the times, paying X.X ended range We line in of covenant significant liquidity proceeds more including October. the when divestiture to QX, X down to Slide of the X.X

on guidance Slide to our now XXXX XX. Turning

impact as year. We lap by prominent expect be in XXXX, the of recover pricing actions in to of pricing, the we to driven most the will grow sales the we X% X% half year. first inflation to took ramp by The last

You'll in September recall July, recover of March, that late and XXXX. inflation to pricing was affected late

Our be guidance assumes will volumes that year. this flat

of As target of to our about levels I mentioned, service. half categories back are

and creamer target like categories to face of expect chain challenges We're of in be cookies, beverages. resolve this constraints most continue and our to of to XX%. certain level We working year, our the by categories service to end close diligently single our supply very we serve

and is we be million, $XXX drive and to supply year-over-year key midpoint between to drivers improvement. of The EBITDA the are to Adjusted projected chain increase as initiatives, TMOS at XX%. which continue represents continuous million a $XXX pricing

We note the million related expect of $XX and between income, approximately the to benefit interest million in interest on in $XX receivable. net reflecting to be primarily XXXX, million $XX

$XX the between of factor the be reduce Interest divested million November proceeds $XX million. we to in and Recall use impact back business expense that and to similar XXXX, provided in were debt. recast financial cash the of remove will very statements the to

estimated initiatives in chain million of in half $XXX spending approximately This and and about capacity such growth be our is year, as supply XXXX. on areas expansion to will CapEx be capabilities. focused innovation

infrastructure The other on will focused and half maintenance. be

of XXX In on and basis of the on total, first our efficiency. X% reliability investments we at upgrades XXXX adjusted have a quarter, in margin spending a we the to improvement improve EBITDA ultimately of that that high-end basis. as our is sales of range require Specific to and basis are to be X% XXX line line number year-over-year top XX% will points locations long-term X.X% of guiding to to points growth and equipment anticipated to of the

With that, comments. back I'll to turn Steve for it Steve? closing

Steve Oakland

Pat. Thanks,

As supports we to our service and growth, heading more our for we're and and levels our the see private support That a label our macro we focused in that beverage both as journey begin investments improving company. private environment long-term. guidance direction a and continue XXXX, coupled about with snacking growth. short-term I'm label capacity, excited

Last on new delight statement and fall, engage time. one we shown customer a you to our XX, Slide shared with purpose at

by trending driven growth consumer profitable is ambition strategic Our leadership in categories.

We're that years Pat strategy of to growth plus, of and guidance, in X% have least XXXX at can cash free EBITDA; flow believe that discussed we $XXX and we in to deliver a because three we the adjusted can deliver annual level X% the purpose, X% we solid of of next a over revenue; Beyond portfolio to ambition clear categories. XX% growth attached confident earlier, million.

that optimization ring company and These to operational new we our several to as strategic pillars sharpened who excellence, tenants and continue people TreeHouse, last growth we've time commercial delight true our rallied our for and priorities. around Those for refined to will some engage stakeholders. followed how and reflect of And have portfolio know you the years, and better we've the talent.

of Leveraging mind. continuous our supply partners, operational a a retail of Prep investments talent to sheet. a are to significant and now network both greater excellence, retailer support our in better technology. building to the commitment balance portion resources nation's manufacturing applied we As and work chain This strengthen and and ongoing to class our improvement, Meal our optimize the requires us best supply world in for sale includes and biggest chain. distribution TMOS customer portfolio an brands. It our our enabled centricity The and with

snacking Today, we higher beverages. label and growth, focused business are private on margin a higher

We talked defined advantage, competitive about by and investment We've outperform profitable growth drive will we leadership in we category a capabilities. the how have where past in in through leadership categories position capacity capabilities, drive and having mean our geographical in different growth can things reach for profitable different but right to it's Depth and for essentially customers TreeHouse. the and categories, depth. having mutually

last at debt pivot to journey in flow down free have strategic the Today, years. strong. than point as our we sheet our rather balance for We're several is a prioritize cash pay

build generate arrived. to key healthy partnerships. be will a our free commercial in our will come strategic me success, We flow business toward our excellence We've to since capabilities, customer which to driving long leads cash first invest way and which I

on the true leadership it this efforts beyond a and level fundamentals We're all building our alignment innovation key planning, more simply and to have the are long-term of for engagement, we Today, agreements we part joint whom next create growth journey. are solutions, customers taking and prospects. business strong to with partnership, collaborative going

paths, to through be talent that doing people choice seen strive a of and be of organization. we profitability to long-term to operate. place Finally, and to targets team, stakeholders. engagement. that and be revenue, harmonizing in value We're for and the continue leader heart markets and investments sustainable employee better which employer and I'm in we by we're the as We the the and talent drive right our our creation and modernizing in career have and in defining the rewards right confident priorities categories growth

up questions. to that, your Operator? open With the let's call

Operator

[Operator session. question the first now comes will question-and-answer Instructions] Andrew from of Lazar from begin line the Barclays. We Your

open. is line Your

Andrew Lazar

everybody. morning, Good Great.

Steve Oakland

Andrew. morning, Good

Andrew Lazar

quarter of off, right, as where see forward, impacts, end normalized you of then supply was range disruption. of start this EBITDA sort call, or some buckets and One the the PNOC you one you of was Steve, large going on think would where year, up I chain and would end identified your To ‘XX EBITDA, what third two up you right? between sort

right, for positive, up, as really So now PNOC row, is been a has progress quarters making good catching in obviously, there. two pricing

'XX in Do sort range? is, can chain just So impacts. of got then the I much -- you guess follow-up. that $XX recover a in supply it million my question underpins I how your specifically of I you And think guidance of think was kind

Steve Oakland

Sure. quarters. be to get I this of the much don't the exactly And as have say, I pricing that year, start last, we think exact expect will the I given positive of With back Well, into most I it half how right? chain lap you've like the to we've of the would of recovery, think first PNOC I half regard seen the year. that we? two mean, supply number,

Pat O’Donnell

the quarter. No. the not normalized XXXX with exited improve we're We've suggest that fourth got of level that, And I XX%, we about about a year. over we've -- of our service. half will are trying is, XX% in of that think We half what expect to the remaining operating plants course service at

start that, and little of seeing as the to material But and things, with which We line expect progress some pleased labor with up pockets seeing that we some us saw. you're invest move challenges, of the margin do we’re to in we a still progress availability we're is pleased why continue in service that in we're to CapEx. bit

Steve Oakland

guidance, given progress in progress and numbers guess, on to make do our an to I think if have but you'll we to just haven't Yeah. work Andrew, we number, we I order the you you. that line that make see make we've given exact expect through

about. good feel we So

Andrew Lazar

pricing how inflation from much expecting you And of the actions And need incremental the I that is directionally here you're I from of what's of sort of magnitude to benefit offset guess, then, even that sort how already much ‘XX? taken? versus sort of guess, well, the -- in net that carryover

Pat O’Donnell

what think in sort XXXX. Yeah. experience We're we about as digit of expecting mid-single inflation we'll

what So last like the we nothing saw cycle. over

to very goods we'll total back can deflation like, of We described have with pricing based some understand pockets I some to inflation it, of then some of them kind of think conversations the that there so have looks we've to as necessary. they pricing what are those continue pockets our in bring that place take then that’s and and basket customers and so accordingly and

Steve Oakland

is that think month take? of of was in. is have the January already I And A your and already we good so much do how to that of Yeah. question taken much piece more in

Andrew Lazar

Thanks so Great. much.

Operator

Moskow Your from Credit next question of comes line Suisse. from Rob the

line is Your open.

Rob Moskow

probably down when space golden there farther at I'm was private sense consumers a Do volume. wondering, opportunity to it. a if be have be little the of through to I it Hi. risk could capacity to going shelf Thanks. year, retailers And you're this what retail lot up and is to were could to you your sure grow constraints space fully a time trade industry losing give label might competitors to has want volume shelf more growth your a or a you a who along? of speed. been at have want

Steve Oakland

are categories half Rob, our of service at -- minute Pat if a said I operating right about levels. ago think, the

label our is I business think, right, if think and tops And probably you or to performing out and at in our thought to you guess. my understanding doing, the in take look point with have or well of deck, would to And where be of our two how And largest as I our a or X top customers. you there customers get, we're Slide we're look, private of you is when if I back virtually half better. on macro, So right? benefit all that my

for risk think of So I reason, business right. at we're don't that losing

performing well we're we're now. pretty and leveraging think I right So scale our

a customers, that offering we're they're extra two, than faster our an of some or So I of if of because the anything, that. division maybe supply actually of set. little some bit thing, we us dual In think think kind grabbing I are peer recovering

advantage on position right. fast his you tell lost, press We're a capacity great court And everything It's to that's of we're can little The in our in absolutely can of business right. can you opportunity. a ourselves as that business national think this And to that, a branded to bit label. as private for I we can trying full time down. little that you're a tell on. label, touched take get have doing we're we I private comments, we prioritizing Pat I co-pack to it we business everything. bit repurpose of

Rob Moskow

Okay. And a your margin. follow-up and X% plan, top to XX% X% EBITDA then would be, long-term when the you X% developed to line

are add all are are going targets capital like X%? And your Your get capacity investments, to existing to margin much lot COGS of a in footprint you expansion, it's a guide? also, margin productivity that expansion how basis deliver like, X% percent helping there on that that of to that to you

Steve Oakland

Yeah. to that, that both I there's those, that capacity meet would we to we've say guided capital that facilitate -- the will The of Rob. number.

those two numbers. We have balanced

So and rate. we lot growth lot in a far. the will that meet so but early have talked but a got is its plenty the TMOS, about work, TMOS we of success capacity haven't TMOS stages, And to then, of we've capital

So we're answer very the I expansion. without margin real to price get the there. taking guess We that in is the can confident customer.

Rob Moskow

do is Okay. The X%, mostly like rate of assumption run in include embedded X% that a for to you inflation? or kind X% also volume it

Pat O’Donnell

so help we I cost savings current us. to to We'll think operated our environment, help sort that's with offset -- in work to initiatives have Yeah. there how in inflation tend how that, the of we've customers

Steve Oakland

at mostly is, bit a Rob, historically, those and inflation. X% categories But it's volume grown your driven of little question I have historically, think X% what to

Rob Moskow

you. volume. Thanks. right. All Mostly Thank

Operator

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

is line Your open.

Bill Chappell

Good Thanks. morning.

Steve Oakland

Bill. morning, Good

Bill Chappell

and to the at but the retailer heard or didn't retailers heard some we've of What just that Did is, reversed level, traffic, store I I pricing. couple of accelerate over on now pricing some raise it follow-up as categories a few months any it a one private manufacturers is and of showed accelerates took from past label that think XXXX? into kind guess, see share. kind in has one the customer moved First you or your everyone's we

Steve Oakland

but the macro, private say some the Bill, no of individual a But discounters customers question. couple individual most have in aggressive each it's a I would really mass say to hard has item on gaps someone occasional an especially, pricing of exception. of There's passed retailer, our hard and hot. there's label. norm, through. our there's passed each most But has item market think that healthy, been an mean, through. say the been on occasional think on I large it's I of pricing remain the The gets that's I wouldn't been I

Bill Chappell

second surprised XX And supply commentary they be of back think you to to service expected little levels, the I year, that's one, I wouldn't then the on months that's normal by was away. it. Got on still them a mean, the Pat's I levels, the said end

So, for or major I sooner obstacle little back mean, is to everything why a maybe long there more would roadblocks be happening give take it of to that that any from normal? color

Pat O’Donnell

some for the think plants. of don't at to over half the our putting single paths. from bit maintenance every paths maybe us that plants get we're that of our got And across and expect a in so of labor We've to challenge the glide more help the of market plant. the I or repairs And fact those you where in little year Yeah. there's little that wouldn't a bit more course a capital stabilizing about sort perspective. a place got handful was we those glide context means And all think we've today. when

you an fully a to to But I sort everything of part take that improved better as much us year get of means the level. don't improved think probably it -- up. the will out So totality, wait service wouldn't

Steve Oakland

label. And private we XX.X, ourselves aggressive a is which Yeah. pretty hold to target in

was we touch So be. wasn't top hoped I know on. of had it to our couple think to a places. place going One there's line quite do we want number what I

and of which had New I get had We Obviously, We facility in hit think January with feet a also but -- couple buffalo lingered of a York. couldn't business we had would facility our fourth suburb a us. pickle affects hurricane and what some month our Tonawanda, X for of we'd fixed it solid and that hoped. other what And things, in have the events that was community we we XX%, not that we cookie of but weather damage a into snow. that in X feet the got quarter.

sales to and had And so our were to hit of demand Mother there our things of got There a us that the We outside couple we've Nature a in we've that But got plenty to categories midst maybe way of. a of few in quarter. get control are couple number. It driven. had softened we've just not was of demand things that got the was we that. get in the -- that

Bill Chappell

XX% businesses Do it. the at your that… want Got could in of Is be you maybe think XX%, you -- the mid-year? by levels you service

Pat O’Donnell

very I think comfortable. that's

Steve Oakland

Yeah.

to or half right. have linger We we've two, structures, the investment some because do will we that into got the just one in think will physical back

Bill Chappell

Got much. so it. Thanks

Operator

next the of Growe Stifel. from comes Your question Chris from line

line Your open. is

Chris Growe

morning. Good Hi.

Steve Oakland

Good morning, Chris.

Chris Growe

Hi.

XXXX Just still we you like, sense away-from-home to question in how I as issues? got might guess would the you look You've composition of lapping and just to a want expect quick private And some volumes to volume. year? get for (ph) the label out? be -- co-man a break understand, should on growing, just be ahead, retail I for down that

Pat O’Donnell

Yeah, Chris.

about a in bit little Pickle talked the we've think business particular. I

We will quarters. a couple that for lap more

from softness the that And you'll through perspective. food-away-from-home of I saw do general categories, some that half. have few a think So as just their then, see we do changed consumption folks I first in think some at least

the but maybe than of we a that So we that see exited, did bit less little significant business was that.

for to a little bit. anticipating are that we so And continue

Steve Oakland

deck, I brands, units if (ph) branded some Slide that core Yeah. slide, guided super our right, think happen. And to is would to suggests hit grow we say cases though, are back to which in most in nicely, pretty like low-single our if well, hard. to premium go has retail what's business for I X our our digits co-man volume order Chris, it flat, in that right, getting it's you

we guide core That's in be of the we're guiding. leverageable. will we business grow kind expect And year So units. margin why that to this our retail nicely that can performance

Chris Growe

a the could. then much if sheet that in And final just question, notes balance with better balance I holding And Okay. that better. now look make a sheet you're could the even place,

You're quickly in position. a better

So business, about when an Steve, improving or that's capabilities, ability How you investing comment? kind in internal much of how to acquire the help talk action? of much now of is some opportunity that an fast-forward an is that of that to if

Steve Oakland

So Chris, think, fund we're feel right? missing for the our really internally, good I now. invest this to right in looked the Rob opportunities growth thank in about internally. opportunity the on and an capability asked -- fund think And the to question of all, to we business, we've future there's growth all We you. first think Yeah. I capacity

if If So path, it I I we to buy we do assets, can would capabilities, the have accelerate chance that focus internally. would and think capacity, the right? say that will that

for I We to group a those be new things more, all would in -- there. not It us to great adjacencies, we we've categories. past. done of not the necessarily that sell in capability we're able about think just be be need think acquisition demand would is the businesses, driven,

that. use do do there's may And us couple think there, we'll M&A you I are places assets see it. So of to if the a

Chris Growe

for Thank color, then. that you Okay.

Steve Oakland

Thanks.

Operator

Connor Your Consumer Research. comes Rattigan next the question from Edge of line from

Your is line open.

Connor Rattigan

Thanks morning. Good guys. Hey, the question. for

Steve Oakland

Good morning, Connor.

Connor Rattigan

then think December. And gap versus in somewhat price in looks it It was sits it the it XX, in you last was Slide slide, So at national showed brands. this price expanded I gaps again but like where November, where year. contracted roughly the

in Just curious how kind of January. that looks

the pricing a categories. data we and look label private this somewhat basis that to your So it year-over-year running of branded in seems is see, ahead that IRR on

any And a guess so price gains? gap there narrowing gap? narrowing lead seem to label share imply I just private to somewhat is was may price that moderating And a concern that

Steve Oakland

I'd say a things. of couple

talk about Let me step back and December.

it the not have So we solid shares, the to have For like kind people normally for a for in, to in brand holidays, where is month uncommon us November, to much very say, for lean month. quarter entertain December December, in it's stronger back you specifically branded And people of good, is. December, When national right? had fell right? a it fourth a of the Thanksgiving

you volume and go suggest right? good expected. that We we that, our as over performed would retailer's quarter. back scanner right, had and of and we time, and if at weekly So solid over look I No, a scanner many business holidays fourth we have to daily our So the data. trends, see you performed our obviously access data,

slowing on not down volumes are Our cap. price based

So our that has not impacted demand signal yet.

Connor Rattigan

And That's great. also. service then just one on levels quick follow-up

I XX% And levels guys around up XX%. about in think you -- were service quantified around recall, last I if quarter So October.

sequential that November number XXX so levels in increase, the somewhat to so, Is if XX%? right? and basis sequentially it with that worsened So sounds like increasing so service was And point December.

Pat O’Donnell

Yeah.

XX%. of we at a month about think I and sort in we solid October, had land did

some dampened what terms and I sort that some events weather bit of that are of exited a earlier probably described the in of like the of Steve the as think we year. things the

Connor Rattigan

Okay. Perfect. color, Appreciate it. Thanks guys. for the

Steve Oakland

Thank you.

Operator

comes line from Dickerson the Jefferies. of question next Your Rob from

line Your open. is

Robert Dickerson

so Thanks much. Great.

say is question, I deflation. broadly here, really the great let's spot the mean sense in environment consumer guess all pricing couple first but on especially of of speaking, a side, branded don't see more given you we the where operating Do the the macro for side. questions. a you on a is -- and lot right? I obviously label taken, just the is branded a of backdrop private kind of kind Just just

cycle were Like term, on branded over you at given elevated prices That's be are this kind beneficial of the your the that longer some the would believe and the where that years, given you could guiding price just little deltas that first point, entering maybe absolute three side? given next you question. a say sort just of

Steve Oakland

based guided a we level. much say I on Rob, more would historic

I The that looking think gaps, times, is are absolute -- at these high. gap right, you're we're but price percentage penny price gap right? absolute different

So see. private could more if that that when things label normalize, adoption? drive We'll

-- one number frankly, I on said a of think is and a I've positioned, to times, think customers. had of largest this I and conversation private put I label our Friday,

their ever label And it's been. they're quality that and private best assortment, the presentations convinced

than I So if a don't to rates, guided. back great. time I of we've we we get for a think gets can the be If But right? growth happen we think, better way historic think to that, to I it hell right? TreeHouse, that need tell, that will us execute build though, would

Robert Dickerson

just Okay. on then obviously, Fair enough. longer-term plan, expansion the implied year-over-year. margin ongoing And

I heard kind and through of is Obviously, time, implied catches then looking supply same if forward, At chain this say improvements. think, XXXX. you guess, this I up earlier you're I measures. the productivity ongoing at year pricing least

some of some kind Is mix there? have definitely on some have Do of you continue anything well. got those component to impact? out assume, it And kind of else increase visibility forth-coming a So there's there as right, year, a is would then there volume-driven you mix conviction, is some of it quick and the maybe be innovation? follow-up. if mostly Because seem or ability your margins. sense maybe to then to this volume in we -- leverage Is like in the

Pat O’Donnell

is Rob. Pat. This Yeah,

elements to grow are laid mean -- I out and there's and label. of strategy think of partnerships strategic trying is customer trucks the growing those we with think that private that customers the about -- I strategy. our as the Steve

think the little improves that. as trying to a of grow to our think I of the has those place lot with that the private to think and with supply overall I chain then we in is But range so do investments necessary faster that, in label who you and I your categories, think grow rates stronger CapEx with naturally that of do the that of to the we've a do growing are trying with probably growth bit. improve put mix and volume that And

Robert Dickerson

Do side. a guide for you Okay. then the forecast little you have D&A, 'XX to are know EBITDA, the bit on same but just And Cool. capital a you I quickly, time investing for D&A? at

Pat O’Donnell

have put I number. we we We'll that exact put follow you with don't up do. -- probably the We that on to out. think

Robert Dickerson

Cool.

Steve Oakland

Great. Thanks Rob.

Robert Dickerson

Yeah. problem. No

Operator

from question line from next Casella JPMorgan. of comes your Carla the And

open. Your line is

Carla Casella

My basis you give the one? on Can biggest that the million us the for EBITDA covenant adjusted. you the -- questions that for $XX just have add-backs

Pat O’Donnell

you're about in So appendix? the talking

Carla Casella

just Covenant [indiscernible]? Exactly. other. $XXX million, we is? million, EBITDA savings go-forward it's cost over Is in calculate your wondering you as I'm the looks difference show what or like just whereas it $XXX

Pat O’Donnell

Yeah.

being agreement. transaction or has it's costs of the I a allowable think footnote were the back down within there category. Meal the under lot -- that added Pep that credit They're related

Carla Casella

Okay.

they're your million $XX charges -- were has as your So another you in back Are adjustments? don't EBITDA Mac $XXX some that million. why you those looks they or like there's the noncash added recur EBITDA charges -- that understand to not well. It allowed don't just other haven't won't add I

Pat O’Donnell

other things elements the inventory No, like those of are write-offs defined agreement. defined, and part other are sort covenant noncash as the as calculation. that, of write-offs There's credit in

Carla Casella

And that? million Okay. allocate receivable you you would And balance a note got what you the When thought to expect you've monetize then do proceeds? on about $XXX -- have sheet. how the

Pat O’Donnell

have when don't We of monetize to an that. Yeah. expectation

interest the credit they dislocation and Winland's choose the that that in back the to that, speculate and position think I into probably terms guesstimate But think of refinance, don't of we're sort in be. reinvest to happy I a some to a able business. having about return we're really be in bit go intent the when may to that note of with markets might when provides given to

carry we feel on continue And as Winland the side the we'll business of the about right direction that And well. good now. so to

Steve Oakland

prioritize allocation think when is good question, a we balanced where do had we arrived, much a great capital I We place I down really And have to right? have allocation capital in sheet strategy. right? our can paying balance more Though debt, a now

so what it? opportunities? we the some do -- are we And strong. else business. to We but will We're we in can with primary look how maintain business And That a sheet. our very get in now because other will the we our can now. think be shareholders? strong our we is invest are returns there balance continue can what Can capital We'll also then that, return

where And the sheet now But we and get past big had right. balanced there. to more we've us a to have than want make a structure our having we in change the balance allowed right opportunity debt much really transaction our step

why better them. drive growth about to that's about talk the today able we feel So to numbers that we're we invest because can

Carla Casella

That's you. great. Super Thank helpful.

Pat O’Donnell

$XXX be to from about million. question Circling earlier, that to million the D&A will $XXX think back we

Operator

the William from And line of from of question your Bank Reuter comes next America.

is line Your open.

William Reuter

radar were the made to, that may other and how would capacity your -- for speed you up you Earlier, that guess, of grow your going reference line? about aggressively your I I you that morning. customers, to Good expansion for facilities allow I for CapEx talking top think ability when terms guess, to to innovation driving grow potentially capacity. is of is more in purchasing sale better be on some the half

Steve Oakland

stuff I it meet to And it has incredibly and careful location capability. think there right the right has some right But And available, will yes. be to the we're right. category, be there. the

out may there for anything some may and some think some other there. some but very opportunities may So small be there be would opportunities I be don't there be -- huge, purchases,

of happen. things So those on when that. timing happen We can't they speculate exact

William Reuter

clearly, going And is agreement, over funds you then -- TSA you you're the year? your to that you're provided costs down the pretty a to are that in going reductions line costs be you'll when in for in able the it. comfortable have still And of some not with this is excess from operations Got of I decrease are to going guess receiving some I expectation revenues, be InvestIndustrial? that to terms those to those wind

Pat O’Donnell

think I Yes, right. that's

services So is there's you expect would well solution TSA those folks we're know we of so to back-office as services we wind And are -- going to And beneficial that Winland where services to there's a (ph) down. the some some the those providing business able need there. be expect under TSA. probably mutual a

William Reuter

Thank sense. right. all That’s me. make from you. That’s All Great.

Operator

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

Steve Oakland

thank say a in person you to great to much. forward want you Thank today, and everyone joining soon. look for seeing Have day. for us you just we I so

Operator

This concludes today's call. conference

disconnect. now may You

TreeHouse Foods (THS) 13 Feb 232022 Q4 Earnings call transcript