Steven Scruggs Comments on TreeHouse Foods

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Aug 31, 2021
Summary
  • The company is selling its cereal business.

TreeHouse Foods (THS, Financial) announced the sale of its cereal business during the quarter as the company continues to increase its focus on higher-margin products, such as the RTE cereal division. Management expects to generate $300 million of free cash flow this year, resulting in a 12% free-cash-flow margin for the company (as of July 15, 2021).

From Steven Scruggs (Trades, Portfolio)' FPA Queens Road Small Cap Value Fund second-quarter 2021 commentary.

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