OAK BROOK, Ill. - TreeHouse Foods, Inc. (NYSE: NYSE:THS) has announced an expansion of its voluntary recall to encompass all products still within their shelf-life that were manufactured at one of its facilities. The recall now includes a variety of frozen toaster waffle, Belgian waffle, and pancake products due to the potential contamination with Listeria monocytogenes.
Listeria is a harmful organism that can lead to serious infections in vulnerable populations such as young children, the elderly, and those with weakened immune systems. While healthy individuals may only experience temporary symptoms like fever and nausea, the infection can be particularly dangerous for pregnant women, potentially causing miscarriages and stillbirths.
The affected products have been distributed across the United States and Canada and are sold under multiple brand names. Consumers can identify the products by the UPC on the carton's back and the Lot Code and Best By Date on the carton's end. The recall includes items with Best By Dates ranging from October 1, 2024, to April 11, 2026, and Lot Codes starting with 2C. The products have been available at numerous retail stores, including Albertson's, Aldi, Dollar General (NYSE:DG), Foodhold, HEB, Kroger (NYSE:KR), Publix, Target, and Walmart (NYSE:WMT).
The recall extension follows additional testing at the manufacturing facility. To date, there have been no confirmed reports of illnesses associated with the recalled products. Consumers in possession of any recalled items are advised to dispose of them or return them to the place of purchase for a refund. For further information, customers can reach out to TreeHouse Foods customer service.
The recall is being conducted with the knowledge of the U.S. Food and Drug Administration (FDA) and the Canadian Food Inspection Agency (CFIA). This information is based on a press release statement from TreeHouse Foods, Inc.
In other recent news, TreeHouse Foods has been navigating significant developments. The company has announced a voluntary recall of various frozen waffle products due to potential contamination with Listeria monocytogenes. This recall, affecting products distributed across the United States and Canada, was identified through routine testing at the manufacturing facility.
Simultaneously, TreeHouse Foods reported a solid Q2 performance, with earnings before interest, taxes, depreciation, and amortization (EBITDA) surpassing the company's own guidance. This positive outcome was attributed to a more robust margin outcome. In response, Stifel has raised its share target for the company, reflecting an 8x multiple on its 2025 EBITDA estimates.
Despite a slight decline in net sales for the second quarter of 2024, TreeHouse Foods exceeded its adjusted EBITDA guidance and maintained its full-year net sales outlook. The company also repurchased $89 million in common stock this year, demonstrating its commitment to shareholder value. These are recent developments that investors should take note of.
InvestingPro Insights
As TreeHouse Foods (NYSE: THS) grapples with the expanded product recall, investors may be wondering about the company's financial health and future prospects. According to InvestingPro data, TreeHouse Foods has a market capitalization of $2.09 billion, reflecting its significant presence in the food manufacturing industry.
Despite the current challenges, there are some positive indicators for the company. An InvestingPro Tip reveals that management has been aggressively buying back shares, which could signal confidence in the company's long-term value. Additionally, TreeHouse Foods boasts a high shareholder yield, potentially offering value to investors.
However, the company's financial performance has been mixed. The revenue for the last twelve months as of Q2 2023 stood at $3.38 billion, with a slight decline of 1.85% compared to the previous period. The gross profit margin is relatively low at 16.16%, which aligns with another InvestingPro Tip indicating that the company suffers from weak gross profit margins.
Looking ahead, analysts predict that TreeHouse Foods will be profitable this year, which could be a positive sign for investors concerned about the impact of the recall. It's worth noting that InvestingPro offers 8 additional tips for TreeHouse Foods, providing a more comprehensive analysis for those seeking deeper insights into the company's financial situation and future outlook.
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