TreeHouse Foods, Inc. reported its financial results for the first quarter of 2025, highlighting margin improvements and operational recovery efforts amid a slight decline in net sales.
The company’s adjusted EBITDA exceeded the upper range of its guidance, driven by strategic cost management and improved execution.
“I am grateful to the entire TreeHouse team for its execution this quarter, which resulted in Adjusted EBITDA that exceeded the upper-end of our guidance range,” said Steve Oakland, Chairman, Chief Executive Officer, and President. “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. I continue to believe private brands are well positioned to offer value to our customers and the consumer.”
Oakland emphasized TreeHouse’s commitment to operational discipline and customer service as the company navigates a challenging economic environment. “As we look ahead, we are remaining 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. These actions have and will 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.”
For the quarter ended March 31, 2025, TreeHouse reported net sales of $792.0 million, a decrease of 3.5% compared to $820.7 million in the same period last year. The decline was largely attributed to lower volumes, stemming from strategic margin management decisions, continued macroeconomic headwinds affecting consumer demand, and service disruptions tied to a voluntary recall of frozen griddle products. The exit from the ready-to-drink (RTD) beverage business also contributed to the sales dip. These factors were partially offset by the acquisition of a private brand tea business, pricing adjustments to offset commodity inflation, and new distribution gains.
Gross profit margin improved to 14.5% from 13.6% a year earlier, a 0.9 percentage point increase. The company credited the improvement to ongoing supply chain efficiency initiatives, favorable pricing strategies, and positive product mix effects driven by the addition of Harris Tea.
Operating expenses for the quarter totaled $120.7 million, up from $117.2 million in the prior-year period. The $3.5 million increase was primarily driven by higher restructuring-related costs, including severance, though these were partially offset by reductions in freight and commission expenses.
TreeHouse’s first-quarter performance underscores the company’s sharpened focus on cost control, margin expansion, and service reliability, setting the stage for longer-term growth even amid ongoing economic uncertainties.
Find out more at: https://www.treehousefoods.com/home/default.aspx