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Jun 30
TreeHouse Q2 2025 Earnings Report
TreeHouse Foods, Inc. reported strong financial results for the second quarter of 2025, with adjusted net sales and adjusted EBITDA exceeding guidance ranges.
Key Takeaways
TreeHouse Foods delivered a strong second quarter in 2025, with net sales increasing by 1.2% to $798.0 million and adjusted EBITDA reaching $73.3 million, surpassing guidance. The company's gross profit improved significantly due to insurance recoveries and supply chain savings, despite a net loss of $2.9 million.
Net sales for Q2 2025 increased by 1.2% to $798.0 million compared to the same period last year.
Adjusted EBITDA for Q2 2025 was $73.3 million, exceeding the upper end of the company's guidance range.
Gross profit as a percentage of net sales improved to 17.4% in Q2 2025, up from 16.3% in Q2 2024, driven by insurance recoveries and supply chain savings.
The company reported a net loss of $2.9 million for Q2 2025, a significant improvement from a $16.7 million net loss in Q2 2024.
TreeHouse
TreeHouse
Forward Guidance
TreeHouse Foods is maintaining its previously issued 2025 adjusted EBITDA and free cash flow guidance, while updating its adjusted net sales guidance to reflect commodity-based pricing actions.
Positive Outlook
- Commitment to driving margin improvement and cash flow growth through improved execution.
- Focus on providing best-in-class service for retail customers.
- Belief that private brands remain attractively positioned, offering value to customers and consumers.
- Plan to grow profits and cash flow regardless of the external environment.
- Positioning the business for significant operating leverage when categories return to higher historical growth rates.
Challenges Ahead
- No specific negative forward guidance points were explicitly stated in the provided text.
- Uncertainty and difficulty in predicting certain items impacting GAAP results for prospective non-GAAP measures.
- Potential for commodity cost inflation to offset gains.
- Risk of unfavorable fixed cost absorption due to declining consumption trends.
- Impact of broader macroeconomic consumption trends.