TreeHouse Foods Stumbles As Sales Dip And Griddle Recall Hits Q3 Earnings; CEO Bets on Future Margins

TreeHouse Foods Inc (NYSE:THS) shares plummeted after the company reported a third-quarter sales decline of 2.8% year-over-year to $839.1 million, missing the consensus of $881.14 million.

Adjusted net sales for the quarter stood at $854.4 million, excluding the voluntary griddle product recall. A voluntary recall of frozen griddle products, distribution disruptions from Hurricane Helene, and selective price adjustments in key categories drove a decline in net sales.

The quarter’s gross margin contracted 30 basis points year over year to 15.6%. The operating margin was 3.8%, down 10 bps year over year.

Adjusted EBITDA from continuing operations was $102.5 million (+14% YoY), and the margin was 12.2%.

Total operating expenses for the quarter were $99.4 million, down $4.5 million YoY, driven by reduced freight ...