TreeHouse Foods, Inc. Reports Second Quarter 2025 Results
TreeHouse Foods (NYSE: THS) reported Q2 2025 financial results, with net sales of $798.0 million and adjusted net sales of $801.4 million, exceeding guidance expectations. The company posted a net loss of $(2.9) million but achieved adjusted EBITDA of $73.3 million.
Key highlights include a 1.2% increase in net sales year-over-year, driven by the private brand tea business acquisition and favorable pricing, offset by volume declines. Gross profit margin improved to 17.4%, up from 16.3% in Q2 2024. For full-year 2025, TreeHouse maintains its adjusted EBITDA guidance of $345-375 million and updates adjusted net sales guidance to $3.360-3.415 billion.
For Q3 2025, the company expects adjusted net sales of $840-870 million and adjusted EBITDA of $90-110 million.
TreeHouse Foods (NYSE: THS) ha riportato i risultati finanziari del secondo trimestre 2025, con vendite nette pari a 798,0 milioni di dollari e vendite nette rettificate di 801,4 milioni di dollari, superando le aspettative. L'azienda ha registrato una perdita netta di (2,9) milioni di dollari ma ha raggiunto un EBITDA rettificato di 73,3 milioni di dollari.
I punti salienti includono un aumento delle vendite nette dell'1,2% su base annua, trainato dall'acquisizione del business del t猫 a marchio privato e da un pricing favorevole, compensato da una diminuzione dei volumi. Il margine lordo 猫 migliorato al 17,4%, rispetto al 16,3% del secondo trimestre 2024. Per l'intero anno 2025, TreeHouse conferma la guidance sull'EBITDA rettificato tra 345 e 375 milioni di dollari e aggiorna la guidance sulle vendite nette rettificate a 3,360-3,415 miliardi di dollari.
Per il terzo trimestre 2025, l'azienda prevede vendite nette rettificate tra 840 e 870 milioni di dollari e un EBITDA rettificato tra 90 e 110 milioni di dollari.
TreeHouse Foods (NYSE: THS) report贸 los resultados financieros del segundo trimestre de 2025, con ventas netas de 798,0 millones de d贸lares y ventas netas ajustadas de 801,4 millones de d贸lares, superando las expectativas. La compa帽铆a registr贸 una p茅rdida neta de (2,9) millones de d贸lares pero alcanz贸 un EBITDA ajustado de 73,3 millones de d贸lares.
Los aspectos destacados incluyen un aumento del 1,2% en las ventas netas interanuales, impulsado por la adquisici贸n del negocio de t茅 de marca privada y precios favorables, compensado por una disminuci贸n en los vol煤menes. El margen bruto mejor贸 a 17,4%, desde el 16,3% en el segundo trimestre de 2024. Para todo el a帽o 2025, TreeHouse mantiene su gu铆a de EBITDA ajustado entre 345 y 375 millones de d贸lares y actualiza la gu铆a de ventas netas ajustadas a 3.360-3.415 mil millones de d贸lares.
Para el tercer trimestre de 2025, la compa帽铆a espera ventas netas ajustadas de 840-870 millones de d贸lares y un EBITDA ajustado de 90-110 millones de d贸lares.
TreeHouse Foods (NYSE: THS)電� 2025雲� 2攵勱赴 鞛 瓴瓣臣毳� 氚滍憸頄堨溂氅�, 靾滊Г於滌潃 7鞏� 9,800毵� 雼煬, 臁办爼 靾滊Г於滌潃 8鞏� 1,140毵� 雼煬搿� 臧�鞚措崢鞀� 旮半寑旃橂ゼ 靸來殞頄堨姷雼堧嫟. 須岇偓電� (290毵� 雼煬)鞚� 靾滌啇鞁れ潉 旮半頄堨溂雮�, 臁办爼 EBITDA電� 7,330毵� 雼煬毳� 雼劚頄堨姷雼堧嫟.
欤检殧 雮挫毄鞙茧電� 臧滌澑 靸來憸 彀�(tea) 靷梾 鞚胳垬鞕� 鞙犽Μ頃� 臧�瓴� 毂呾爼鞐� 頌橃瀰鞏� 鞝勲厔 霃欔赴 雽�牍� 1.2% 靾滊Г於� 歃濌皜臧� 鞛堨棃鞙茧倶, 韺愲Г霟� 臧愳唽搿� 鞚茧秬 靸侅噭霅橃棃鞀惦媹雼�. 齑濎澊鞚惦鞚� 2024雲� 2攵勱赴 16.3%鞐愳劀 17.4%搿� 臧滌劆霅橃棃鞀惦媹雼�. 2025雲� 鞝勳泊鞐� 雽�頃� TreeHouse電� 臁办爼 EBITDA 臧�鞚措崢鞀るゼ 3鞏� 4,500毵寏3鞏� 7,500毵� 雼煬搿� 鞙犾頃橂┌, 臁办爼 靾滊Г於� 臧�鞚措崢鞀るゼ 33鞏� 6,000毵寏34鞏� 1,500毵� 雼煬搿� 鞐呺嵃鞚错姼頄堨姷雼堧嫟.
2025雲� 3攵勱赴鞐愲姅 臁办爼 靾滊Г於� 8鞏� 4,000毵寏8鞏� 7,000毵� 雼煬, 臁办爼 EBITDA 9,000毵寏1鞏� 1,000毵� 雼煬毳� 鞓堨儊頃橁碃 鞛堨姷雼堧嫟.
TreeHouse Foods (NYSE : THS) a publi茅 ses r茅sultats financiers du deuxi猫me trimestre 2025, avec un chiffre d'affaires net de 798,0 millions de dollars et un chiffre d'affaires net ajust茅 de 801,4 millions de dollars, d茅passant les pr茅visions. La soci茅t茅 a enregistr茅 une perte nette de (2,9) millions de dollars mais a r茅alis茅 un EBITDA ajust茅 de 73,3 millions de dollars.
Les points cl茅s incluent une augmentation de 1,2% du chiffre d'affaires net d'une ann茅e sur l'autre, port茅e par l'acquisition de l'activit茅 th茅 en marque priv茅e et une tarification favorable, compens茅e par une baisse des volumes. La marge brute s'est am茅lior茅e 脿 17,4%, contre 16,3% au deuxi猫me trimestre 2024. Pour l'ensemble de l'ann茅e 2025, TreeHouse maintient ses pr茅visions d'EBITDA ajust茅 entre 345 et 375 millions de dollars et met 脿 jour ses pr茅visions de chiffre d'affaires net ajust茅 脿 3,360-3,415 milliards de dollars.
Pour le troisi猫me trimestre 2025, la soci茅t茅 pr茅voit un chiffre d'affaires net ajust茅 de 840-870 millions de dollars et un EBITDA ajust茅 de 90-110 millions de dollars.
TreeHouse Foods (NYSE: THS) meldete die Finanzergebnisse f眉r das zweite Quartal 2025 mit Nettoums盲tzen von 798,0 Millionen US-Dollar und bereinigten Nettoums盲tzen von 801,4 Millionen US-Dollar, die die Prognosen 眉bertrafen. Das Unternehmen verzeichnete einen Nettogewinnverlust von (2,9) Millionen US-Dollar, erzielte jedoch ein bereinigtes EBITDA von 73,3 Millionen US-Dollar.
Wesentliche Highlights sind ein 1,2%iger Anstieg der Nettoums盲tze im Jahresvergleich, angetrieben durch die 脺bernahme des Private-Label-Tee-Gesch盲fts und g眉nstige Preisgestaltung, die durch Volumenr眉ckg盲nge ausgeglichen wurden. Die Bruttomarge verbesserte sich auf 17,4%, gegen眉ber 16,3% im zweiten Quartal 2024. F眉r das Gesamtjahr 2025 best盲tigt TreeHouse seine Prognose f眉r das bereinigte EBITDA von 345-375 Millionen US-Dollar und aktualisiert die Prognose f眉r bereinigte Nettoums盲tze auf 3,360-3,415 Milliarden US-Dollar.
F眉r das dritte Quartal 2025 erwartet das Unternehmen bereinigte Nettoums盲tze von 840-870 Millionen US-Dollar und ein bereinigtes EBITDA von 90-110 Millionen US-Dollar.
- Adjusted net sales and EBITDA exceeded guidance expectations
- Gross profit margin improved by 1.1 percentage points to 17.4%
- Operating expenses decreased by $20.4 million year-over-year
- Received $13.1 million in insurance recoveries related to product recalls
- Maintaining full-year adjusted EBITDA guidance of $345-375 million
- Posted net loss of $(2.9) million in Q2 2025
- Volume/mix declined 6.2% due to margin management actions
- Increased interest expense due to higher borrowings on Revolving Credit Facility
- Net cash used in operating activities increased by $28.9 million
- High-single digit organic volume decline expected in Q3 2025
Insights
TreeHouse exceeded Q2 guidance despite posting $2.9M net loss; maintains 2025 outlook amid challenging consumption trends.
TreeHouse Foods delivered $798 million in Q2 net sales, representing a
The revenue growth was primarily driven by two factors: the acquisition of a private brand tea business (contributing
Gross profit margin improved to
Operating expenses decreased by
Adjusted EBITDA increased
The cash flow picture shows challenges, with net cash used in operating activities increasing to
Looking ahead, TreeHouse maintained its full-year 2025 adjusted EBITDA guidance of
Second Quarter Adjusted Net Sales & Adjusted EBITDA Exceed Guidance Range
- Net sales were
$798.0 million $801.4 million - Net loss was
$(2.9) million - Adjusted EBITDA1 of
$73.3 million - The Company remains confident in its ability to achieve its 2025 guidance.
"I appreciate the considerable effort of the entire TreeHouse team as we posted another quarter of strong results, including adjusted net sales and adjusted EBITDA that both exceeded the upper-end of our guidance range," said Steve Oakland, Chairman, Chief Executive Officer, and President. "We continue to make progress against our goals - driving margin improvement and cash flow growth through improved execution."
Mr.
SECOND听QUARTER 2025 FINANCIAL RESULTS
Net Sales听鈥� Net sales for the second quarter of 2025 totaled
Three Months | Six Months | |||
(unaudited) | (unaudited) | |||
Margin management | (2.6)听% | (2.9)听% | ||
Consumption/other | (2.4) | (2.6) | ||
Griddle recall service impacts | (1.2) | (1.8) | ||
Volume/mix | (6.2)听% | (7.3)听% | ||
Business acquisition | 4.5 | 4.6 | ||
Pricing | 4.2 | 2.6 | ||
Business exit | (1.0) | (0.7) | ||
Product recall returns | (0.2) | (0.3) | ||
Foreign currency | (0.1) | (0.1) | ||
Total change in net sales | 1.2听% | (1.2)听% | ||
Product recall returns/other | 0.2 | 0.3 | ||
Total change in adjusted net sales(1) | 1.4听% | (0.9)听% |
The net sales increase of
Gross Profit 鈥� Gross profit as a percentage of net sales was
Total Operating Expenses 鈥� Total operating expenses were
Total Other Expense 鈥� Total other expense was
Income Taxes 鈥� Income taxes were recognized at an effective rate of
Net Loss and Adjusted EBITDA 鈥� Net loss for the second quarter of 2025 was
Net Cash Used In Operating Activities 鈥� Net cash used in operating activities was
OUTLOOK2
TreeHouse Foods is maintaining its previously issued 2025 adjusted EBITDA and free cash flow guidance. The Company has updated its adjusted net sales guidance to reflect commodity based pricing actions.
- Adjusted net sales are now expected in a range of
$3.36 0 billion$3.41 5 billion0.5% to growth of approximately1% year-over-year driven by:- Volume/mix, which is still expected to decline approximately
1% year-over-year due to:- Organic volume/mix decline approximately
1% - Harris Tea volume benefit offset by previously announced decision to exit the Ready-to-drink ("RTD") business and other margin management actions, along with one-time impact of frozen griddle product recall.
- Organic volume/mix decline approximately
- Pricing, which is now expected to provide a low-single-digit benefit, driven primarily by commodity related pricing actions.
- Volume/mix, which is still expected to decline approximately
- Adjusted EBITDA is still expected in a range of
$345 million $375 million - The Company still expects free cash flow of at least
$130 million - Net interest expense is continued to be expected in the range of
$80 $90 million - The Company still expects capital expenditures of approximately
$125 million
With regard to the third quarter, TreeHouse Foods expects the following:
- Third quarter adjusted net sales are expected in a range of
$840 $870 million 4% benefit. - Third quarter adjusted EBITDA is expected in a range of
$90 $110 million
________________________________________________ |
1 Adjusted EBITDA, adjusted net sales, and free cash flow听are non-GAAP financial measures. See "Comparison of Non-GAAP Information to GAAP Information" for the definitions of the Non-GAAP measures, information concerning certain items affecting comparability, and reconciliations of GAAP to Non-GAAP measures. |
2 听The Company is not able to reconcile prospective adjusted net sales, adjusted EBITDA or free cash flow, which are Non-GAAP financial measures, to the most comparable GAAP financial measures without unreasonable effort due to the inherent uncertainty and difficulty of predicting the occurrence, financial impact, and timing of certain items impacting GAAP results. These items include, but are not limited to, mark-to-market adjustments of derivative contracts, foreign currency exchange on the re-measurement of intercompany notes, or other non-recurring events or transactions that may significantly affect reported GAAP results.听 |
CONFERENCE CALL WEBCAST
A webcast to discuss the Company's second quarter earnings will be held at 8:30 a.m. (Eastern Time) today. The live audio webcast and a supporting slide deck will be available on the Company's website at .
COMPARISON OF NON-GAAP INFORMATION TO GAAP INFORMATION
The Company has included in this release measures of financial performance that are not defined by GAAP ("Non-GAAP"). A Non-GAAP financial measure is a numerical measure of financial performance that excludes or includes amounts so as to be different than the most directly comparable measure calculated and presented in accordance with GAAP in the Company's Condensed Consolidated Balance Sheets, Condensed Consolidated Statements of Operations, Condensed Consolidated Statements of Comprehensive Income (Loss), Condensed Consolidated Statements of Stockholders' Equity, and the Condensed Consolidated Statements of Cash Flows. As described further below, the Company believes these measures provide useful information to the users of the financial statements.
For each of these Non-GAAP financial measures, the Company provides a reconciliation between the most directly comparable GAAP measure and the Non-GAAP measure, an explanation of why management believes the Non-GAAP measure provides useful information to financial statement users, and any additional purposes for which management uses the Non-GAAP measure. This Non-GAAP financial information is provided as additional information for the financial statement users and is not in accordance with, or an alternative to, GAAP. These Non-GAAP measures may be different from similar measures used by other companies.
EBITDA, EBITDA Margin, Adjusted EBITDA, and Adjusted EBITDA Margin, Adjusting for Certain Items Affecting Comparability
EBITDA margin听is defined as EBITDA as a percentage of net sales. Adjusted EBITDA margin is defined as adjusted EBITDA听 as a percentage of adjusted net sales. EBITDA represents net loss before interest expense, interest income, income tax benefit, and depreciation and amortization expense. Adjusted EBITDA reflects adjustments to EBITDA to identify items that, in management's judgment, significantly affect the assessment of earnings results between periods. This information is provided in order to allow investors to make meaningful comparisons of the Company's earnings performance between periods and to view the Company's business from the same perspective as Company management. As the Company cannot predict the timing and amount of charges that include, but are not limited to, items such as product recalls and related costs, restructuring programs, acquisition, integration, divestiture, and related costs, loss on extinguishment of debt, impairment of assets, foreign currency exchange impact on the re-measurement of intercompany notes, mark-to-market adjustments on derivative contracts, and other items that may arise from time to time that would impact comparability, management does not consider these costs when evaluating the Company's performance, when making decisions regarding the allocation of resources, in determining incentive compensation, or in determining earnings estimates. EBITDA and adjusted EBITDA are performance measures commonly used by management to assess operating performance and incentive compensation, and the Company believes they are commonly reported and widely used by investors and other interested parties as a measure of a company's operating performance between periods and as a component of our debt covenant calculations.
Adjusted Net Sales, Adjusted Cost of Sales, Adjusted Gross Profit, Adjusted Total Operating Expenses, Adjusted Operating Income, Adjusted Total Other Expense, Adjusted Income Tax Expense, Adjusted Net Income, and Adjusted Diluted Earnings (Loss) Per Share, Adjusting for Certain Items Affecting Comparability
Adjusted net sales, adjusted cost of sales, adjusted gross profit, adjusted total operating expenses, adjusted operating income, adjusted total other expense, adjusted income tax expense, and adjusted net income represent their respective GAAP presentation line item adjusted for items such as product recalls and related costs, restructuring programs, acquisition, integration, divestiture, and related costs, loss on extinguishment of debt, impairment of assets, foreign currency exchange impact on the re-measurement of intercompany notes, mark-to-market adjustments on derivative contracts, and other items that may arise from time to time that would impact comparability. Management does not consider these costs when evaluating the Company's performance, when making decisions regarding the allocation of resources, in determining incentive compensation, or in determining earnings estimates. This information is provided in order to allow investors to make meaningful comparisons of the Company's earnings performance between periods and to view the Company's business from the same perspective as Company management. The Company has presented each of these adjusted Non-GAAP measures as a percentage of adjusted net sales compared to its respective reported GAAP presentation line item as a percentage of net sales. Adjusted diluted earnings (loss) per share ("Adjusted diluted EPS") is determined by dividing adjusted net income (loss) by the weighted average diluted common shares outstanding. Adjusted diluted EPS reflects adjustments to GAAP earnings (loss) per diluted share to identify items that, in management's judgment, significantly affect the assessment of earnings results between periods.
Given the inherent uncertainty regarding adjusted items in any future period, a reconciliation of forward-looking financial measures to the most directly comparable GAAP measure is not feasible.
Free Cash Flow
In addition to measuring our cash flow generation and usage based upon the operating, investing, and financing classifications included in the Condensed Consolidated Statements of Cash Flows, we also measure free cash flow (a Non-GAAP measure) which represents net cash used in operating activities, less capital expenditures and proceeds from sales of fixed assets. We believes free cash flow is an important measure of liquidity because it provides management and investors a measure of cash generated from operations that is available for mandatory payment obligations and investment opportunities such as funding acquisitions, repaying debt, repurchasing public debt, and repurchasing common stock. A reconciliation between the relevant GAAP measure of cash used in operating activities for the six months ended June 30, 2025 and 2024 calculated according to GAAP and free cash flow is presented in the attached tables.
ABOUT TREEHOUSE FOODS
TreeHouse Foods, Inc. is a leading private brands snacking and beverage manufacturer in
Additional information, including TreeHouse's most recent statements on Forms 10-Q and 10-K, may be found at TreeHouse's website, .
FORWARD-LOOKING STATEMENTS
This press release contains "forward-looking" statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements and other information are based on our beliefs, as well as assumptions made by us, using information currently available. The words "believe," "estimate," "project," "expect," "anticipate," "plan," "intend," "foresee," "should," "would," "could," and similar expressions, as they relate to us, are intended to identify forward-looking statements. Such statements reflect our current views with respect to future events and are subject to certain risks, uncertainties, and assumptions. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described herein as anticipated, believed, estimated, expected, or intended. We do not intend to update these forward-looking statements following the date of this press release. Such forward-looking statements, because they relate to future events, are by their very nature subject to many important factors that could cause actual results to differ materially from those contemplated by the forward-looking statements contained in this press release and other public statements we make. Such factors include, but are not limited to: risks related to quality issues, disruptions, or inefficiencies in our supply chain and/or operations; product recalls; loss or consolidation of key suppliers; raw material and commodity costs due to inflation; labor strikes or work stoppages; multiemployer pension plans; labor shortages and increased competition for labor; success of our restructuring programs; our level of indebtedness and related obligations; disruptions in the financial markets; uncertain effects, both direct and indirect, of changes and volatility in tariffs and trade policies; interest rates; changes in foreign currency exchange rates; customer concentration and consolidation; competition; our ability to execute on our business strategy; our ability to continue to make acquisitions and execute on divestitures or effectively manage the growth from acquisitions; impairment of goodwill or long lived assets; changes and developments affecting our industry, including customer preferences and the prevalence of weight loss drugs; the outcome of litigation and regulatory proceedings to which we and/or our customers may be a party; changes in laws and regulations applicable to us; shareholder activism; disruptions in or failures of our information technology systems; geopolitical events; changes in weather conditions, climate changes, and natural disasters; and other risks that are set forth in the Risk Factors section, the Legal Proceedings section, the Management's Discussion and Analysis of Financial Condition and Results of Operations section, and other sections of our Annual Report on Form 10-K for the year ended December 31, 2024, and from time to time in our filings with the Securities and Exchange Commission ("SEC"). You are cautioned not to unduly rely on such forward-looking statements, which speak only as of the date made when evaluating the information presented in this press release. TreeHouse expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statement contained herein, to reflect any change in its expectations with regard thereto, or any other change in events, conditions or circumstances on which any statement is based.
FINANCIAL INFORMATION
TREEHOUSE FOODS, INC. | ||||
CONDENSED CONSOLIDATED BALANCE SHEETS | ||||
(Unaudited, in millions, except per share data) | ||||
June 30, 2025 | December 31, 2024 | |||
Assets | ||||
Current assets: | ||||
Cash and cash equivalents | $听听听听听听听听听听听听听听听听听听听听听 17.1 | $听听听听听听听听听听听听听听听听听听 289.6 | ||
Receivables, net | 212.0 | 146.8 | ||
Inventories | 634.8 | 539.3 | ||
Prepaid expenses and other current assets | 44.2 | 34.0 | ||
Total current assets | 908.1 | 1,009.7 | ||
Property, plant, and equipment, net | 758.5 | 748.6 | ||
Operating lease right-of-use assets | 183.8 | 154.4 | ||
Goodwill | 1,892.1 | 1,819.3 | ||
Intangible assets, net | 266.8 | 212.9 | ||
Other assets, net | 34.8 | 35.1 | ||
Total assets | $听听听听听听听听听听听听听听听 4,044.1 | $听听听听听听听听听听听听听听听 3,980.0 | ||
Liabilities and Stockholders' Equity | ||||
Current liabilities: | ||||
Accounts payable | $听听听听听听听听听听听听听听听听听听 534.5 | $听听听听听听听听听听听听听听听听听听 602.5 | ||
Accrued expenses | 179.9 | 141.3 | ||
Current portion of long-term debt | 5.8 | 1.1 | ||
Total current liabilities | 720.2 | 744.9 | ||
Long-term debt | 1,496.7 | 1,401.3 | ||
Operating lease liabilities | 144.9 | 125.4 | ||
Deferred income taxes | 106.3 | 105.8 | ||
Other long-term liabilities | 50.9 | 53.7 | ||
Total liabilities | 2,519.0 | 2,431.1 | ||
Commitments and contingencies | ||||
Stockholders' equity: | ||||
Preferred stock, par value | 鈥� | 鈥� | ||
Common stock, par value | 0.6 | 0.6 | ||
Treasury stock | (385.4) | (385.4) | ||
Additional paid-in capital | 2,244.7 | 2,238.4 | ||
Accumulated deficit | (256.7) | (222.0) | ||
Accumulated other comprehensive loss | (78.1) | (82.7) | ||
Total stockholders' equity | 1,525.1 | 1,548.9 | ||
Total liabilities and stockholders' equity | $听听听听听听听听听听听听听听听 4,044.1 | $听听听听听听听听听听听听听听听 3,980.0 | ||
听
TREEHOUSE FOODS, INC. | ||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||
(Unaudited, in millions, except per share data) | ||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||
2025 | 2024 | 2025 | 2024 | |||||
Net sales | $听听听听听听听听听 798.0 | $听听听听听听听听听 788.5 | $听听听听听听 1,590.0 | $听听听听听听 1,609.2 | ||||
Cost of sales | 658.8 | 660.2 | 1,335.6 | 1,368.9 | ||||
Gross profit | 139.2 | 128.3 | 254.4 | 240.3 | ||||
Operating expenses: | ||||||||
Selling and distribution | 35.0 | 35.5 | 71.4 | 78.4 | ||||
General and administrative | 51.3 | 54.2 | 107.0 | 110.0 | ||||
Amortization expense | 13.2 | 12.1 | 26.3 | 24.2 | ||||
Asset impairment | 鈥� | 19.3 | 鈥� | 19.3 | ||||
Other operating expense, net | 12.4 | 11.2 | 27.9 | 17.6 | ||||
Total operating expenses | 111.9 | 132.3 | 232.6 | 249.5 | ||||
Operating income (loss) | 27.3 | (4.0) | 21.8 | (9.2) | ||||
Other expense: | ||||||||
Interest expense | 22.2 | 15.6 | 41.5 | 31.2 | ||||
Interest income | (0.2) | (0.1) | (3.0) | (4.1) | ||||
Loss on extinguishment of debt | 鈥� | 鈥� | 2.6 | 鈥� | ||||
(Gain) loss on foreign currency exchange | (4.7) | 1.5 | (5.0) | 4.9 | ||||
Other expense (income), net | 15.6 | (0.1) | 34.9 | (5.0) | ||||
Total other expense | 32.9 | 16.9 | 71.0 | 27.0 | ||||
Loss before income taxes | (5.6) | (20.9) | (49.2) | (36.2) | ||||
Income tax benefit | (2.7) | (4.2) | (14.5) | (7.8) | ||||
Net loss | $听听听听听听听听听听听听 (2.9) | $听听听听听听听听听 (16.7) | $听听听听听听听听听 (34.7) | $听听听听听听听听听 (28.4) | ||||
Earnings (loss) per common share: | ||||||||
Basic | $听听听听听听听听听 (0.06) | $听听听听听听听听听 (0.32) | $听听听听听听听听听 (0.69) | $听听听听听听听听听 (0.54) | ||||
Diluted | (0.06) | (0.32) | (0.69) | (0.54) | ||||
Weighted average common shares: | ||||||||
Basic | 50.5 | 52.3 | 50.5 | 53.0 | ||||
Diluted | 50.5 | 52.3 | 50.5 | 53.0 | ||||
听
TREEHOUSE FOODS, INC. | ||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||
(Unaudited, in millions) | ||||
Six Months Ended | ||||
2025 | 2024 | |||
Cash flows from operating activities: | ||||
Net loss | $听听听听听听听听听听听听听听听听听 (34.7) | $听听听听听听听听听听听听听听听听听 (28.4) | ||
Adjustments to reconcile net loss to net cash used in operating activities: | ||||
Depreciation and amortization | 83.5 | 72.8 | ||
Asset impairment | 鈥� | 19.3 | ||
Stock-based compensation | 10.4 | 11.0 | ||
Loss on extinguishment of debt | 2.6 | 鈥� | ||
Unrealized loss (gain) on derivative contracts | 31.7 | (8.5) | ||
Other, net | (6.1) | 2.7 | ||
Changes in operating assets and liabilities, net of acquisitions: | ||||
Receivables | (50.6) | (10.5) | ||
Inventories | (50.5) | (60.6) | ||
Prepaid expenses and other assets | (25.3) | (6.9) | ||
Accounts payable | (75.6) | (47.1) | ||
Accrued expenses and other liabilities | 13.9 | (15.6) | ||
Net cash used in operating activities | (100.7) | (71.8) | ||
Cash flows from investing activities: | ||||
Capital expenditures | (54.0) | (51.1) | ||
Proceeds from sales of fixed assets | 4.8 | 1.4 | ||
Acquisition, net of cash acquired | (209.3) | 鈥� | ||
Net cash used in investing activities | (258.5) | (49.7) | ||
Cash flows from financing activities: | ||||
Borrowings under Revolving Credit Facility | 1,409.5 | 9.5 | ||
Payments under Revolving Credit Facility | (1,304.5) | (9.5) | ||
Payments on financing lease obligations | (1.2) | (0.3) | ||
Payment of deferred financing costs | (3.7) | 鈥� | ||
Payments on Term Loans | (906.0) | 鈥� | ||
Proceeds from refinanced Term Loans | 899.2 | 鈥� | ||
Repurchases of common stock | 鈥� | (88.7) | ||
Payments related to stock-based award activities | (4.1) | (3.9) | ||
Net cash provided by (used in) financing activities | 89.2 | (92.9) | ||
Effect of exchange rate changes on cash and cash equivalents | (2.5) | (0.1) | ||
Net decrease in cash and cash equivalents | (272.5) | (214.5) | ||
Cash and cash equivalents, beginning of period | 289.6 | 320.3 | ||
Cash and cash equivalents, end of period | $听听听听听听听听听听听听听听听听听听听 17.1 | $听听听听听听听听听听听听听听听听听 105.8 | ||
听
Six Months Ended | ||||
2025 | 2024 | |||
Supplemental cash flow disclosures: | ||||
Interest paid | $听听听听听听听听听听听听听听听听听听听 46.1 | $听听听听听听听听听听听听听听听听听听听 42.5 | ||
Net income taxes paid | 16.7 | 6.6 | ||
Non-cash investing and financing activities: | ||||
Capital expenditures incurred but not yet paid | 14.4 | 22.3 | ||
Right-of-use assets obtained in exchange for lease obligations | 44.9 | 0.3 | ||
Preliminary purchase price adjustment for private brand tea business acquisition | 2.0 | 鈥� | ||
Accrued deferred financing costs | 0.2 | 鈥� | ||
The following table reconciles the Company's net loss to EBITDA and adjusted EBITDA, for the three and six months ended June 30, 2025 and 2024:
TREEHOUSE FOODS, INC. | ||||||||
RECONCILIATION OF NET LOSS TO EBITDA AND ADJUSTED EBITDA | ||||||||
听(Unaudited, in millions) | ||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||
2025 | 2024 | 2025 | 2024 | |||||
Net loss (GAAP) | $听听听听听听听听听听听听 (2.9) | $听听听听听听听听听听 (16.7) | $听听听听听听听听听听 (34.7) | $听听听听听听听听听听 (28.4) | ||||
Interest expense | 22.2 | 15.6 | 41.5 | 31.2 | ||||
Interest income | (0.2) | (0.1) | (3.0) | (4.1) | ||||
Income tax benefit | (2.7) | (4.2) | (14.5) | (7.8) | ||||
Depreciation and amortization | 42.1 | 36.2 | 83.5 | 72.8 | ||||
EBITDA (Non-GAAP) | 58.5 | 30.8 | 72.8 | 63.7 | ||||
Mark-to-market adjustments(1) | 14.7 | (1.5) | 31.7 | (8.5) | ||||
Restructuring programs & other, excluding accelerated depreciation(2) | 12.7 | 11.5 | 28.1 | 18.2 | ||||
Acquisition, integration, divestiture, and related costs(3) | 0.7 | 1.9 | 3.2 | 6.0 | ||||
Foreign currency (gain) loss on re-measurement of intercompany notes(4) | (3.7) | 1.1 | (3.9) | 3.5 | ||||
Product recalls and related (income) costs, including insurance recoveries(5) | (9.6) | 7.5 | (3.7) | 14.4 | ||||
Loss on extinguishment of debt(6) | 鈥� | 鈥� | 2.6 | 鈥� | ||||
Impairment(7) | 鈥� | 19.3 | 鈥� | 19.3 | ||||
Adjusted EBITDA (Non-GAAP) | $听听听听听听听听听听听听 73.3 | $听听听听听听听听听听听听 70.6 | $听听听听听听听听听听 130.8 | $听听听听听听听听听听 116.6 | ||||
% of net sales | ||||||||
Net loss margin | (0.4)听% | (2.1)听% | (2.2)听% | (1.8)听% | ||||
EBITDA margin | 7.3听% | 3.9听% | 4.6听% | 4.0听% | ||||
% of adjusted net sales | ||||||||
Adjusted EBITDA margin | 9.1听% | 8.9听% | 8.2听% | 7.2听% | ||||
During the three and six months ended June 30, 2025 and 2024, the Company entered into transactions that affected the year-over-year comparison of its financial results as follows:
(1) | The Company's derivative contracts are marked-to-market each period. The non-cash unrealized changes in fair value recognized in Other expense (income), net within the Condensed Consolidated Statements of Operations are treated as Non-GAAP adjustments. As the contracts are settled, realized gains and losses are recognized, and only the mark-to-market impacts are treated as Non-GAAP adjustments. |
(2) | The Company's restructuring and margin improvement activities are part of an enterprise-wide transformation to improve the long-term profitability of the Company. During the three and six months ended June 30, 2025, the Company recognized |
(3) | Acquisition, integration, divestiture, and related costs represents costs associated with completed and potential acquisitions, the related integration of the acquisitions, completed and potential divestitures, and gains or losses on the divestiture of a business. During the three and six months ended June 30, 2025, |
(4) | The Company has foreign currency denominated intercompany loans and incurred foreign currency gains/losses to re-measure the loans at quarter end. These amounts are non-cash and the loans are eliminated in consolidation. |
(5) | Griddle Recall and Related (Income) Costs, including Insurance Recoveries On October 18, 2024, the Company initiated a voluntary recall of certain frozen waffle products produced at its Broth Recall and Related (Income) Costs, including Insurance Recoveries On September 22, 2023, the Company initiated a voluntary recall of certain broth products produced at its For the three and six months ended June 30, 2024, the Non-GAAP adjustments included non-cash plant shutdown charges of |
(6) | During the first quarter of 2025, the Company incurred a loss on extinguishment of debt, which included a write off of deferred financing costs of |
(7) | During the second quarter of 2024, the Company incurred |
The following tables reconcile the Company's Adjusted net sales, Adjusted cost of sales, Adjusted gross profit, Adjusted total operating expenses, Adjusted operating income, Adjusted total other expense, Adjusted income tax expense, and Adjusted net income to their most directly comparable GAAP measure, for three and six months ended June 30, 2025 and 2024:
TREEHOUSE FOODS, INC. | ||||||||||||||||
RECONCILIATION OF NON-GAAP MEASURES | ||||||||||||||||
(Unaudited, in millions, except per share amounts) | ||||||||||||||||
Three Months Ended June 30, 2025 | ||||||||||||||||
Net sales | Cost of | Gross | Total | Operating | Total | Income | Net (loss) | |||||||||
As reported (GAAP) | $听听听听听听听听 798.0 | $听听听听听听听听 658.8 | $听听听听 139.2 | $听听听听 111.9 | $听听听听听听 27.3 | $听听听听听听 32.9 | $听听听听听听听 (2.7) | $听听听听听听听 (2.9) | ||||||||
Adjustments: | ||||||||||||||||
Mark-to-market adjustments(1) | 鈥� | 鈥� | 鈥� | 鈥� | 鈥� | (14.7) | 鈥� | 14.7 | ||||||||
Restructuring programs & other, including accelerated | 鈥� | (2.9) | 2.9 | (12.7) | 15.6 | 鈥� | 鈥� | 15.6 | ||||||||
Acquisition, integration, divestiture, and related costs(3) | 0.2 | 鈥� | 0.2 | (0.5) | 0.7 | 鈥� | 鈥� | 0.7 | ||||||||
Foreign currency gain on re-measurement of intercompany notes(4) | 鈥� | 鈥� | 鈥� | 鈥� | 鈥� | 3.7 | 鈥� | (3.7) | ||||||||
Product recalls and related (income) costs, including insurance | 3.2 | 12.8 | (9.6) | 鈥� | (9.6) | 鈥� | 鈥� | (9.6) | ||||||||
Taxes on adjusting items | 鈥� | 鈥� | 鈥� | 鈥� | 鈥� | 鈥� | 6.0 | (6.0) | ||||||||
As adjusted (Non-GAAP) | $听听听听听听听听 801.4 | $听听听听听听听听 668.7 | $听听听听 132.7 | $听听听听听听 98.7 | $听听听听听听 34.0 | $听听听听听听 21.9 | $听听听听听听听听听 3.3 | $听听听听听听听听听 8.8 | ||||||||
As reported (% of net sales) | 17.4听% | 14.0听% | 3.4听% | 4.1听% | (0.3)听% | (0.4)听% | ||||||||||
As adjusted (% of adjusted net sales) | 16.6听% | 12.3听% | 4.2听% | 2.7听% | 0.4听% | 1.1听% | ||||||||||
Earnings (loss) per share: | ||||||||||||||||
Diluted | $听 听 听 (0.06) | |||||||||||||||
Adjusted diluted | $听听听听听听 0.17 | |||||||||||||||
Weighted average common shares: | ||||||||||||||||
Diluted for net loss | 50.5 | |||||||||||||||
Diluted for adjusted net income | 50.6 | |||||||||||||||
听
Three Months Ended June 30, 2024 | ||||||||||||||||
Net sales | Cost of | Gross | Total | Operating | Total | Income | Net (loss) | |||||||||
As reported (GAAP) | $听听听听听听听听 788.5 | $听听听听听听听听 660.2 | $听听听听 128.3 | $听听听听 132.3 | $听听听听听听听 (4.0) | $听听听听听听 16.9 | $听听听听听听听 (4.2) | $听听听听 (16.7) | ||||||||
Adjustments: | ||||||||||||||||
Mark-to-market adjustments(1) | 鈥� | 鈥� | 鈥� | 鈥� | 鈥� | 1.5 | 鈥� | (1.5) | ||||||||
Restructuring programs & other(2) | 鈥� | 鈥� | 鈥� | (11.5) | 11.5 | 鈥� | 鈥� | 11.5 | ||||||||
Acquisition, integration, divestiture, and related costs(3) | 鈥� | (0.2) | 0.2 | (1.7) | 1.9 | 鈥� | 鈥� | 1.9 | ||||||||
Foreign currency loss on re-measurement of intercompany notes(4) | 鈥� | 鈥� | 鈥� | 鈥� | 鈥� | (1.1) | 鈥� | 1.1 | ||||||||
Product recalls and related costs(5) | 1.4 | (6.1) | 7.5 | 鈥� | 7.5 | 鈥� | 鈥� | 7.5 | ||||||||
Impairment(7) | 鈥� | 鈥� | 鈥� | (19.3) | 19.3 | 鈥� | 鈥� | 19.3 | ||||||||
Taxes on adjusting items | 鈥� | 鈥� | 鈥� | 鈥� | 鈥� | 鈥� | 8.1 | (8.1) | ||||||||
As adjusted (Non-GAAP) | $听听听听听听听听 789.9 | $听听听听听听听听 653.9 | $听听听听 136.0 | $听听听听听听 99.8 | $听听听听听听 36.2 | $听听听听听听 17.3 | $听听听听听听听听听 3.9 | $听听听听听听 15.0 | ||||||||
As reported (% of net sales) | 16.3听% | 16.8听% | (0.5)听% | 2.1听% | (0.5)听% | (2.1)听% | ||||||||||
As adjusted (% of adjusted net sales) | 17.2听% | 12.6听% | 4.6听% | 2.2听% | 0.5听% | 1.9听% | ||||||||||
Earnings (loss) per share | ||||||||||||||||
Diluted | $听 听 听 (0.32) | |||||||||||||||
Adjusted diluted | $听听听听听听 0.29 | |||||||||||||||
Weighted average common shares: | ||||||||||||||||
Diluted for net loss | 52.3 | |||||||||||||||
Diluted for adjusted net income | 52.5 | |||||||||||||||
听
Six Months Ended June 30, 2025 | ||||||||||||||||
Net sales | Cost of | Gross | Total | Operating | Total | Income | Net (loss) | |||||||||
As reported (GAAP) | $听听听听 1,590.0 | $听听听听 1,335.6 | $听听听听 254.4 | $听听听听 232.6 | $听听听听听听 21.8 | $听听听听听听 71.0 | $听听听听 (14.5) | $听听听听 (34.7) | ||||||||
Adjustments: | ||||||||||||||||
Mark-to-market adjustments(1) | 鈥� | 鈥� | 鈥� | 鈥� | 鈥� | (31.7) | 鈥� | 31.7 | ||||||||
Restructuring programs & other, including accelerated depreciation(2) | 鈥� | (5.7) | 5.7 | (28.2) | 33.9 | 鈥� | 鈥� | 33.9 | ||||||||
Acquisition, integration, divestiture, and related costs(3) | 0.5 | (1.9) | 2.4 | (0.8) | 3.2 | 鈥� | 鈥� | 3.2 | ||||||||
Foreign currency gain on re-measurement of intercompany notes(4) | 鈥� | 鈥� | 鈥� | 鈥� | 鈥� | 3.9 | 鈥� | (3.9) | ||||||||
Product recalls and related (income) costs, including insurance recoveries(5) | 6.9 | 12.9 | (6.0) | (2.3) | (3.7) | 鈥� | 鈥� | (3.7) | ||||||||
Loss on extinguishment of debt(6) | 鈥� | 鈥� | 鈥� | 鈥� | 鈥� | (2.6) | 鈥� | 2.6 | ||||||||
Taxes on adjusting items | 鈥� | 鈥� | 鈥� | 鈥� | 鈥� | 鈥� | 18.8 | (18.8) | ||||||||
As adjusted (Non-GAAP) | $听听听听 1,597.4 | $听听听听 1,340.9 | $听听听听 256.5 | $听听听听 201.3 | $听听听听听听 55.2 | $听听听听听听 40.6 | $听听听听听听听听听 4.3 | $听听听听听听 10.3 | ||||||||
As reported (% of net sales) | 16.0听% | 14.6听% | 1.4听% | 4.5听% | (0.9)听% | (2.2)听% | ||||||||||
As adjusted (% of adjusted net sales) | 16.1听% | 12.6听% | 3.5听% | 2.5听% | 0.3听% | 0.6听% | ||||||||||
Earnings (loss) per share: | ||||||||||||||||
Diluted | $听 听 听 (0.69) | |||||||||||||||
Adjusted diluted | $听听听听听听 0.20 | |||||||||||||||
Weighted average common shares: | ||||||||||||||||
Diluted for net loss | 50.5 | |||||||||||||||
Diluted for adjusted net income | 50.5 | |||||||||||||||
听
Six Months Ended June 30, 2024 | ||||||||||||||||
Net sales | Cost of | Gross | Total | Operating | Total | Income | Net (loss) | |||||||||
As reported (GAAP) | $听听听听 1,609.2 | $听听听听 1,368.9 | $听听听听 240.3 | $听听听听 249.5 | $听听听听听听听 (9.2) | $听听听听听听 27.0 | $听听听听听听听 (7.8) | $听听听听 (28.4) | ||||||||
Adjustments: | ||||||||||||||||
Mark-to-market adjustments(1) | 鈥� | 鈥� | 鈥� | 鈥� | 鈥� | 8.5 | 鈥� | (8.5) | ||||||||
Restructuring programs & other(2) | 鈥� | 鈥� | 鈥� | (18.2) | 18.2 | 鈥� | 鈥� | 18.2 | ||||||||
Acquisition, integration, divestiture, and related costs(3) | 鈥� | (2.1) | 2.1 | (3.9) | 6.0 | 鈥� | 鈥� | 6.0 | ||||||||
Foreign currency loss on re-measurement of intercompany notes(4) | 鈥� | 鈥� | 鈥� | 鈥� | 鈥� | (3.5) | 鈥� | 3.5 | ||||||||
Product recalls and related costs(5) | 2.3 | (12.1) | 14.4 | 鈥� | 14.4 | 鈥� | 鈥� | 14.4 | ||||||||
Impairment(7) | 鈥� | 鈥� | 鈥� | (19.3) | 19.3 | 鈥� | 鈥� | 19.3 | ||||||||
Taxes on adjusting items | 鈥� | 鈥� | 鈥� | 鈥� | 鈥� | 鈥� | 11.3 | (11.3) | ||||||||
As adjusted (Non-GAAP) | $听听听听 1,611.5 | $听听听听 1,354.7 | $听听听听 256.8 | $听听听听 208.1 | $听听听听听听 48.7 | $听听听听听听 32.0 | $听听听听听听听听听 3.5 | $听听听听听听 13.2 | ||||||||
As reported (% of net sales) | 14.9听% | 15.5听% | (0.6)听% | 1.7听% | (0.5)听% | (1.8)听% | ||||||||||
As adjusted (% of adjusted net sales) | 15.9听% | 12.9听% | 3.0听% | 2.0听% | 0.2听% | 0.8听% | ||||||||||
Earnings per share: | ||||||||||||||||
Diluted | $听 听 听 (0.54) | |||||||||||||||
Adjusted diluted | $听听听听听听 0.25 | |||||||||||||||
Weighted average common shares: | ||||||||||||||||
Diluted for net loss | 53.0 | |||||||||||||||
Diluted for adjusted net income | 53.4 | |||||||||||||||
听
TREEHOUSE FOODS, INC. | ||||
RECONCILIATION OF NET CASH USED IN OPERATING ACTIVITIES TO FREE CASH FLOW | ||||
(Unaudited, in millions)听 | ||||
Six Months Ended June 30, | ||||
2025 | 2024 | |||
Cash flow used in operating activities (GAAP) | $听听听听听听听听听听听听听听听 (100.7) | $听听听听听听听听听听听听听听听听听 (71.8) | ||
Capital expenditures | (54.0) | (51.1) | ||
Proceeds from sales of fixed assets | 4.8 | 1.4 | ||
Free cash flow (Non-GAAP) | $听听听听听听听听听听听听听听听 (149.9) | $听听听听听听听听听听听听听听听 (121.5) | ||
听
View original content:
SOURCE TreeHouse Foods, Inc.
FAQ
What were TreeHouse Foods (THS) Q2 2025 earnings results?
What is TreeHouse Foods (THS) full-year 2025 guidance?
How did TreeHouse Foods (THS) gross profit margin change in Q2 2025?
What are TreeHouse Foods (THS) Q3 2025 expectations?
What factors drove TreeHouse Foods (THS) Q2 2025 sales growth?
