TreeHouse Foods Reports Q2 2025 Net Loss of $2.9 Million, Revenue Increases 1.2%

TreeHouse Foods, Inc. reported its financial results for the second quarter and first half of 2025, revealing a net loss of $2.9 million for the three months ending June 30, compared to a loss of $16.7 million in the same period last year. Revenue for the quarter increased by 1.2% to $798.0 million, up from $788.5 million in 2024. For the first half of 2025, net sales totaled $1.59 billion, a decrease of 1.2% from $1.61 billion in the prior year. The company attributed the decline in sales to unfavorable volume/mix related to margin management actions, broader macroeconomic consumption trends, and service impacts from a voluntary recall of frozen griddle products.

The company’s gross profit margin improved to 17.4% in the second quarter of 2025, up from 16.3% a year earlier, primarily due to $13.1 million in insurance recoveries related to product recalls and favorable margins from the acquisition of Harris Tea. Total operating expenses decreased significantly to $111.9 million from $132.3 million, largely due to the absence of a non-cash impairment charge recorded in the previous year. However, total other expenses rose to $32.9 million, driven by increased interest expenses and unfavorable changes in non-cash mark-to-market impacts from hedging activities.

Strategically, TreeHouse Foods completed the acquisition of the private brand tea business from Harris Freeman & Co. for approximately $207.6 million in January 2025, which contributed $74.1 million in net sales and $4.3 million in income before taxes from the acquisition date through June 30, 2025. The company also announced plans to close its Chicago pickle facility and South Beloit cookie facility, aiming to consolidate operations and enhance efficiency. Additionally, the company exited the ready-to-drink beverage business, ceasing production in early 2025.

Operationally, TreeHouse Foods reported a decrease in cash and cash equivalents, ending the quarter with $17.1 million, down from $289.6 million at the end of 2024. The company’s total liabilities increased to $2.52 billion, up from $2.43 billion, primarily due to higher long-term debt. The company’s employee headcount remained stable, with no significant changes reported. Looking ahead, TreeHouse Foods anticipates continued challenges from inflationary pressures and evolving consumer preferences, but remains focused on leveraging its acquisitions and operational efficiencies to drive future growth.