Company: THS
Filing Date: 2025-02-14
Form Type: 10-K
Source: 0001320695-25-000007
Chunk: 69

Company: TreeHouse Foods, Inc.
Filing Date: 2025-02-14
Form: 10-K
Item: Item 7
Chunk 69
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 market share compared to national brands, which we believe demonstrates the continued strength of the private brands market. We continue to monitor consumption trends including the increased use and/or prevalence of certain weight loss drugs, which may or may not impact consumer preferences and consumption patterns.

Industry-wide supply chain disruption over the last several years, which had previously constrained our ability to service all of the customer orders received and depressed service levels, has meaningfully improved. Additionally, TreeHouse has made considerable progress toward its long-term supply chain cost savings initiative goals throughout its business, resulting in margin improvement. TreeHouse continues to make strong progress in enhancing our service levels and capturing demand for private brand food and beverage. 

Many of our ingredients and packaging input costs still remain elevated compared to historical levels, such as the prices of coffee and cocoa. In response, we from time to time will implement pricing actions to recover inflationary costs. We will continue to monitor the inflationary environment to determine if additional pricing actions will be necessary.

We manage the impact of cost increases, wherever possible, on commercially reasonable terms, by locking in prices on the quantities we expect are required to meet our production requirements. In addition, as input costs rise, we seek to recover inflation by implementing higher pricing. However, our pricing actions often lag commodity cost changes temporarily, or we may not be able to pass along the full effect of increases in raw materials and other input costs as we incur them.

25

Results of Operations

Year Ended December 31, 2024 Compared to Year Ended December 31, 2023

The following table presents certain information concerning our financial results, including information presented as a percentage of consolidated net sales: Year Ended December 31, 20242023Increase / (Decrease)(Dollars in millions, except per share amounts)DollarsPercentDollarsPercent$ Change% ChangeNet sales$3,354.0 100.0 %$3,431.6 100.0 %$(77.6)(2.3)%Cost of sales2,805.6 83.6 2,855.5 83.2 (49.9)(1.7)Gross profit548.4 16.4 576.1 16.8 (27.7)(4.8)Operating expenses:    Selling and distribution153.3 4.6 171.6 5.0 (18.3)(10.7)General and administrative198.0