Company: THS
Filing Date: 2025-11-10
Form Type: 10-Q
Source: 0001320695-25-000107
Chunk: 74

Company: TreeHouse Foods, Inc.
Filing Date: 2025-11-10
Form: 10-Q
Item: Part I, Item 1
Chunk 74
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loss) income to Adjusted operating income, Total other expense to Adjusted total other expense, Income tax benefit to Adjusted income tax expense, Net loss to Adjusted net income, and Diluted earnings (loss) per share to Adjusted diluted earnings per share.

35

Three Months Ended September 30, 2025 Compared to Three Months Ended September 30, 2024 

Net Sales — Net sales for the third quarter of 2025 totaled $840.3 million compared to $839.1 million for the same period last year, an increase of $1.2 million, or 0.1%. The change in net sales from 2024 to 2025 was due to the following: 

 DollarsPercent (In millions)Volume/mix$(72.1)(8.6)%Margin management (25.2)(3.0)Total volume/mix$(97.3)(11.6)%Pricing54.5 6.5 Business acquisition36.4 4.3 Product recall14.1 1.7 RTD business exit(6.2)(0.7)Foreign currency(0.3)(0.1)Total change in net sales$1.2 0.1 %Product recall/other(13.7)(1.6)Total change in adjusted net sales (1)$(12.5)(1.5)%

(1)Adjusted net sales is a Non-GAAP financial measure. Refer to the "Non-GAAP Measures" section for additional information.

The net sales increase of 0.1% was primarily due to favorable pricing to recover commodity inflation, the acquisition of the private brand tea business, and distribution gains. This was partially offset by volume/mix related to broader macroeconomic consumption trends, distribution losses, planned margin management actions, and the RTD business exit.Gross Profit — Gross profit as a percentage of net sales was 18.8% in the third quarter of 2025, compared to 15.6% in the third quarter of 2024, an increase of 3.2 percentage points. The increase is primarily due to $17.5 million of insurance recoveries related to voluntary product recalls received during the third quarter of 2025, favorable margin from the Harris Tea acquisition, and supply chain savings initiatives. This was partially offset by unfavorable fixed cost absorption due to declining consumption trends.Total Operating Expenses — Total operating expenses were $412.0 million in the