By Dean Seal

TreeHouse Foods had a smaller first-quarter decline in revenue than expected and turned a surprise adjusted profit as the company bears down on margins amid muted spending.

The private-label food manufacturer posted a widened loss of $31.8 million, or 63 cents a share, compared with a loss of $11.7 million, or 22 cents a share, in the same quarter a year earlier.

Stripping out restructuring costs, product recall expenses and other one-time items, adjusted earnings were 3 cents a share. Analysts polled by FactSet had been expecting an adjusted loss of 16 cents a share.

Revenue slid 3.5% to $792 million, ahead of analyst forecasts for $791 million, according to FactSet.

Volumes and unfavorable shifts in the mix of products sold cut into the top line, though higher prices and the impact of acquiring Harris Tea partially offset the decline.

Broader macroeconomic trends also played into the decline, as did service impacts from the company's voluntary recall of frozen griddle products, TreeHouse said.

Chief Executive Steve Oakland said TreeHouse has restored production capacity to its frozen griddle facility and implemented plans to drive margin at a time when category growth may be limited.

"We are controlling the controllables and ensuring that we provide best in class service for our retail customers at a time when they need us," Oakland said.

Write to Dean Seal at dean.seal@wsj.com

(END) Dow Jones Newswires

May 06, 2025 07:29 ET (11:29 GMT)

Copyright (c) 2025 Dow Jones & Company, Inc.