Overview

* TreeHouse Q2 adjusted net sales exceed guidance range, driven by tea acquisition

* Adjusted EBITDA rises to $73.3 mln, reflecting supply chain savings

* Company reports Q2 net loss of $2.9 mln, remains confident in 2025 guidance

Outlook

* TreeHouse Foods ( THS ) maintains 2025 adjusted EBITDA guidance at $345 mln to $375 mln

* Company updates 2025 adjusted net sales guidance to $3.360 bln-$3.415 bln

* Third quarter adjusted net sales expected between $840 mln and $870 mln

* Pricing actions expected to provide low-single-digit benefit in 2025, 4% benefit in Q3

* Company still expects free cash flow of at least $130 million

Result Drivers

* TEA ACQUISITION - Net sales increase driven by acquisition of private brand tea business

* PRICING STRATEGY - Favorable pricing actions to recover commodity inflation contributed to sales

* RECALL IMPACT - Service impacts from voluntary recall of frozen griddle products affected sales

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 Sales Beat $798 mln $788.40

mln (8

Analysts

)

Q2 EPS -$0.06

Q2 Net -$2.90

Income mln

From

Cont Ops

Q2 $73.30

Adjusted mln

EBITDA

Analyst Coverage

* The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 7 "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the food processing peer group is "buy."

* Wall Street's median 12-month price target for TreeHouse Foods Inc ( THS ) is $22.00, about 6.5% above its July 30 closing price of $20.57

* The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 15 three months ago

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)