TreeHouse Foods, Inc. Reports Second Quarter 2025 Results

Core Insights - TreeHouse Foods reported strong financial results for Q2 2025, with adjusted net sales and adjusted EBITDA exceeding guidance [2][3] - The company is focused on margin improvement and cash flow growth, emphasizing the importance of private brands in the current market [2][3] Financial Performance - Net sales for Q2 2025 were $798.0 million, a 1.2% increase from $788.5 million in Q2 2024 [3] - Adjusted EBITDA for Q2 2025 was $73.3 million, up from $70.6 million in Q2 2024, reflecting a $2.7 million increase [8][11] - Gross profit margin improved to 17.4% in Q2 2025 from 16.3% in Q2 2024, primarily due to insurance recoveries and supply chain savings [4] Operating Expenses - Total operating expenses decreased to $111.9 million in Q2 2025 from $132.3 million in Q2 2024, largely due to a prior non-cash impairment charge [5] - Total other expenses increased to $32.9 million in Q2 2025 from $16.9 million in Q2 2024, driven by unfavorable changes in hedging activities and increased interest expenses [6] Tax and Net Loss - The effective tax rate rose to 48.2% in Q2 2025 from 20.1% in Q2 2024, influenced by non-deductible executive compensation [7] - The net loss for Q2 2025 was $2.9 million, an improvement from a net loss of $16.7 million in Q2 2024 [8][11] Cash Flow and Outlook - Net cash used in operating activities was $100.7 million in the first half of 2025, compared to $71.8 million in the same period of 2024 [9] - The company maintains its 2025 adjusted EBITDA and free cash flow guidance, with adjusted net sales expected to range from $3.360 billion to $3.415 billion [10][12] Future Expectations - For Q3 2025, adjusted net sales are projected to be between $840 million and $870 million, with organic volume expected to decline [25] - Adjusted EBITDA for Q3 2025 is anticipated to be in the range of $90 million to $110 million [25]