11:43 AM EST, 02/14/2025 (MT Newswires) -- TreeHouse Foods ( THS ) on Friday posted lower-than-expected fourth-quarter results and a downbeat 2025 revenue outlook amid slowing growth trends for the food category.

The food and beverage company expects adjusted sales to come in between $3.34 billion and $3.4 billion in 2025, representing an annual decline of 1% to growth of 1%. A drop in organic volume and mix is expected to be countered by a pricing gain. The Street is modeling for revenue of $3.43 billion in the year.

"We continue to see a challenging macro food environment and slowing category growth as it relates to our top line outlook," Chief Financial Officer Patrick O'Donnell said during an earnings call with analysts, according to a FactSet transcript.

Adjusted earnings before interest, taxes, depreciation and amortization are expected between $345 million and $375 million in the year, compared with $337.4 million in 2024.

"The board and management are executing a plan to drive more profitable business through the organization, including making strategic decisions on margin management on new and existing business with a goal of prioritizing gross profit dollars," Chief Executive Steve Oakland said in a statement. "We are also focused on additional efficiency opportunities across the organization that, along with declining levels of (capital expenditure) as we complete growth-related investments, can drive improved profitability and cash flow."

For the quarter ended December, TreeHouse Foods ( THS ) posted adjusted earnings of $0.95 per share, up from $0.77 the year before but below the FactSet-polled consensus of $0.97. Sales slipped 0.6% year over year to $905.7 million, trailing analysts' view for $907.7 million.

Volume and mix rose 3.8%, weighed down by the impact of the griddle product facility restoration following a related recall. In October 2024, TreeHouse Foods ( THS ) recalled products made at its Ontario facility over food quality and safety concerns. The facility resumed shipping products in recent weeks, Oakland told analysts. The company in September 2023 initiated a recall of certain broth products produced at its Cambridge, Maryland, facility.

"Despite a slower macro environment and two significant supply chain issues, our teams made steady progress executing on our supply chain initiatives amidst a difficult consumer backdrop across food and beverage categories," Oakland said in the statement.

TreeHouse Foods' ( THS ) shares rose 9.6% in Friday trading.

For the first quarter, the company expects adjusted sales between $785 million and $800 million, which is a 3.5% decline at the mid-point year over year.

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