Company: THS
Filing Date: 2025-05-06
Form Type: 10-Q
Source: 0001320695-25-000089
Chunk: 54

Company: TreeHouse Foods, Inc.
Filing Date: 2025-05-06
Form: 10-Q
Item: Part I, Item 1
Chunk 54
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 to Adjusted total operating expenses, Operating loss to Adjusted operating income, Total other expense to Adjusted total other expense, Income tax benefit to Adjusted income tax expense (benefit) , Net loss to Adjusted net income (loss), and Diluted earnings (loss) per share to Adjusted diluted earnings (loss) per share.

32

Three Months Ended March 31, 2025 Compared to Three Months Ended March 31, 2024 

Net Sales — Net sales for the first quarter of 2025 totaled $792.0 million compared to $820.7 million for the same period last year, a decrease of $28.7 million, or 3.5%. The change in net sales from 2024 to 2025 was due to the following: 

 DollarsPercent (In millions)Margin management$(26.7)(3.3)%Consumption/other(22.0)(2.6)Griddle recall service impacts(19.4)(2.4)Volume/mix$(68.1)(8.3)%Business acquisition38.6 4.7 Pricing8.7 1.1 Business exit(3.1)(0.4)Product recall returns(2.8)(0.3)Foreign currency(2.0)(0.3)Total change in net sales$(28.7)(3.5)%Product recall returns2.8 0.3 Total change in adjusted net sales (1)$(25.9)(3.2)%

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

The net sales decrease of 3.5% was primarily due to unfavorable volume/mix related to planned margin management actions, broader macroeconomic consumption trends, and service impacts related to the voluntary recall of frozen griddle products. Additionally, the RTD business exit contributed to the decrease. This was partially offset by the acquisition of the private brand tea business, favorable pricing to recover commodity inflation, and distribution gains.Gross Profit — Gross profit as a percentage of net sales was 14.5% in the first quarter of 2025, compared to 13.6% in the first quarter of 2024, an increase of 0.9 percentage points. The increase in Gross profit is primarily due to the execution of supply chain savings initiatives, favorable pricing to recover commodity inflation, and a mix benefit from Harris