TreeHouse Foods posted a net loss for the first quarter of 2022, but sales were up and the company expects to be in the black by the end of the year.
TreeHouse’s sales for the quarter were $1.14 billion, a 7.9% increase over the same quarter last year. However, the company lost $2.8 million in the quarter, which management attributed to “inflation, labor and supply chain disruption, and timing lag of pricing actions.”
TreeHouse expects to be profitable this year on increased sales of about 11%, executives said. They pointed to two positive trends: the effects of TreeHouse raising prices for its own products, and the increasing popularity of private-label products.
"The private label proposition is becoming increasingly important to our customers and their consumers as they manage a higher cost macro environment and seek better value," CEO Steve Oakland said in a statement. "This has translated into private label consumption growth and unit share gains in measured channels, and in the first quarter, we outpaced the broader private label market in eight of our ten largest categories."