TreeHouse Foods Q2 Sales Down Slightly
Second quarter net sales at TreeHouse Foods were down year-over-year as declines in pricing and changes to the company’s volume and mix had a negative impact on results.
For the quarter ended June 30, net sales were $788.5 million, down from net sales of $803.5 million in the comparable quarter the previous year. Company officials said the decrease was primarily due to targeted commodity-driven pricing adjustments.
Additionally, the decrease was due to unfavorable volume/mix related to planned distribution exits primarily in the company's coffee and in-store bakery categories, and the restoration of one of its broth facilities. These items were partially offset by volume/mix from the acquisition of the coffee roasting capability and new business wins.
Net loss from continuing operations for the second quarter of 2024 was $16.7 million, compared to net income from continuing operations of $22.4 million for the same period of the previous year.
"Our teams made significant progress converting net sales opportunities and executing on our supply chain initiatives this quarter,” said Steve Oakland, chairman, chief executive officer, and president of TreeHouse. “The combination of these efforts, along with our work to restore one of our broth facilities, contributed to the improvement of our overall business performance and the building of momentum at TreeHouse. As a result, I am confident we are well positioned to deliver on our expected annual net sales growth and free cash flow targets and achieve our updated profitability guidance."
Looking ahead, TreeHouse officials are forecasting third quarter net sales growth of $865 million to $895 million, which represents approximately flat to 4% growth year-over-year. Organic volume and mix are expected to be up low-single digits. Pricing is expected to be approximately flat.