TreeHouse Foods Surpasses Earnings Guidance in Q1 2025

TreeHouse Foods ( (THS) ) has released its Q1 earnings. Here is a breakdown of the information TreeHouse Foods presented to its investors.

TreeHouse Foods, Inc. is a prominent private brands snacking and beverage manufacturer in North America, known for its focus on delivering value through customer engagement and operational efficiency. In its first quarter of 2025, TreeHouse Foods reported a net sales figure of $792 million, with an adjusted EBITDA of $57.5 million, surpassing the upper end of its guidance range. Despite a net loss of $31.8 million, the company reaffirmed its 2025 outlook, projecting adjusted net sales between $3.34 billion and $3.40 billion and adjusted EBITDA between $345 million and $375 million.

The company’s financial performance in the first quarter was marked by a 3.5% decline in net sales compared to the previous year, primarily due to unfavorable volume/mix and impacts from a voluntary recall of frozen griddle products. However, this was partially offset by the acquisition of a private brand tea business and favorable pricing adjustments. Gross profit improved to 14.5% of net sales, driven by supply chain savings and pricing strategies.

Operating expenses increased slightly to $120.7 million, influenced by restructuring costs, while total other expenses rose significantly due to unfavorable changes in hedging activities and increased interest expenses. The company’s adjusted EBITDA saw a notable increase from the previous year, reflecting successful supply chain initiatives and the positive impact of recent acquisitions.

Looking ahead, TreeHouse Foods remains committed to its strategic plan, emphasizing margin management and profitability. The company expects second-quarter adjusted net sales to range between $785 million and $800 million, with adjusted EBITDA projected between $61 million and $71 million. TreeHouse Foods continues to focus on providing exceptional service to its retail customers, aiming for growth in profits and cash flow despite challenging market conditions.