TreeHouse Q1 Revenue Dips
First quarter net sales at TreeHouse Foods were down 3.5%, as several factors, including broader macroeconomic consumption trends and a recall of frozen products, negatively impacted revenue.
For the three months ended March 31, net sales were $792 million, down from $820.7 million in the prior year. The decline in revenue was driven by an unfavorable volume/mix related to planned margin management actions, broader macroeconomic consumption trends, and service disruptions tied to the voluntary recall of frozen griddle products.
Additionally, the company’s exit from its ready-to-drink (RTD) business contributed to the decrease. This was partially offset by the acquisition of a private brand tea business, favorable pricing to offset commodity inflation, and distribution gains.
The net loss for the first quarter of 2025 was $31.8 million, or ($0.63) per diluted share, compared to a loss of $11.7 million, or ($0.22) per diluted share, in the same period the previous year.
“We restored production capacity at our Brantford frozen griddle facility and implemented plans to drive margin and execution, consistent with our focus on profitability and cash flow growth,” said Steve Oakland, chairman, CEO, and president of TreeHouse Foods. “I continue to believe private brands are well-positioned to offer value to our customers and consumers."
He continued, “As we look ahead, we remain steadfast in the plan I articulated last quarter. We are controlling the controllables and ensuring that we provide best-in-class service for our retail customers at a time when they need us most. These actions have enabled—and will continue to enable—us to grow profits and cash flow regardless of the environment, and position the business for significant operating leverage when our categories return to higher growth rates."
Looking ahead to the second quarter, the company expects adjusted net sales to range from $785 million to $800 million, representing approximately flat growth year-over-year. Organic volume and mix are expected to decline in the mid-single digits, driven primarily by continued margin management actions and the griddle product recall. Pricing is expected to provide a benefit of approximately 1%.
