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Mar 31, 2025
TreeHouse Q1 2025 Earnings Report
Reported financial results for the first quarter of 2025
Key Takeaways
TreeHouse Foods reported a decrease in net sales for the first quarter of 2025 compared to the prior year, primarily due to unfavorable volume/mix and service impacts from a product recall. However, the company saw an increase in gross profit and adjusted EBITDA, driven by supply chain savings, favorable pricing, and the impact of an acquisition. The company reiterated its full-year 2025 guidance.
Net sales for Q1 2025 were $792.0 million, a decrease of 3.5% from Q1 2024.
Gross profit margin increased to 14.5% in Q1 2025 from 13.6% in Q1 2024.
Net loss for Q1 2025 was $31.8 million, compared to a net loss of $11.7 million in Q1 2024.
Adjusted EBITDA increased to $57.5 million in Q1 2025 from $46.0 million in Q1 2024, exceeding the upper end of guidance.
Forward Guidance
TreeHouse Foods reiterated its previously issued full-year 2025 guidance and provided expectations for the second quarter.
Positive Outlook
- Reiterating full year 2025 guidance suggests confidence in future performance.
- Execution resulting in Adjusted EBITDA exceeding the upper-end of guidance range in Q1.
- Restored production capacity at Brantford frozen griddle facility.
- Implemented plans to drive margin and execution consistent with focus on profitability and cash flow growth.
- Private brands are well positioned to offer value to customers and consumers.
Challenges Ahead
- Net sales decrease of 3.5% in Q1 2025.
- Unfavorable volume/mix related to planned margin management actions.
- Broader macroeconomic consumption trends impacting sales.
- Service impacts related to the voluntary recall of frozen griddle products.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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