02:09 PM EDT, 05/06/2025 (MT Newswires) -- TreeHouse Foods ( THS ) on Tuesday forecast flat second-quarter sales year on year after posting lower top-line for the prior three-month period amid weak consumption trends and a product recall.
For the ongoing quarter, the food and beverage manufacturer guided for adjusted net sales of $785 million to $800 million, which it said represents approximately flat growth at the mid-point on an annual basis. The consensus on FactSet is for $785.7 million.
TreeHouse expects organic volume and mix for the quarter to drop mid-single digits amid "continued margin management actions" and a griddle product recall that initiated in October, it said in a statement. Pricing is expected to be a tailwind, according to the company.
The company's shares were down 4.8% in Tuesday afternoon trade. The stock has lost 36% in value so far this year.
TreeHouse's first-quarter revenue fell 3.5% year on year to $792 million, but topped analysts' $790.8 million estimate. It swung to first-quarter adjusted earnings of $0.03 per share from a $0.03 loss a year earlier. Analysts expected a $0.15 loss.
"Private brand unit sales were slightly negative in the quarter, which came in as a result of continued pressure on the consumer that impacted the broader market," Chief Executive Steve Oakland said during an earnings call, according to a FactSet transcript. The Easter holiday came later this year and impacted March trends, Oakland said.
"We have seen the categories bounce back somewhat in April," he told analysts. "This progression unfolded largely as we expected."
For 2025, TreeHouse continues to expect adjusted net sales of $3.34 billion to $3.40 billion versus Wall Street's $3.37 billion views. "Based on the current environment, our guidance contemplates what is in place as it relates to tariff policies as of today," Chief Financial Officer Patrick O'Donnell said on the call.
Last month, US President Donald Trump announced new tariffs on imports, including from China, but later declared a 90-day pause on certain duties for non-retaliating countries. Washington and Beijing have since been in a deadlock over tariffs.
"The operating environment is clearly much more dynamic than we or anyone anticipated when we last spoke in February," Oakland said on the call. "But we are focused on controlling what we can control and executing against our plans to drive profits and cash flow, regardless of the economic environment."
Price: 22.49, Change: -0.96, Percent Change: -4.09
