TreeHouse Posts Loss, Struggles with Supply Chain

Feb. 15, 2022
TreeHouse Foods posted a loss for fiscal 2021 and may have trouble fulfilling orders stemming from new businesses, its executives said.

TreeHouse Foods posted a loss for fiscal 2021 and may have trouble fulfilling orders stemming from new businesses, its executives said on a recent earnings call.

The private-label processor lost $12.5 million in 2021, down from a profit of $13.8 million last year. Sales were almost unchanged, at $4.33 billion.

One of TreeHouse’s biggest challenges is coping with material shortages, labor issues and other factors that affect scheduling. For that reason, the company will have to be careful about accepting new business, its executives said.

“We are really cautious right now not to disappoint the customer and so there's probably more new business available to us today, but we're being cautious not to take that and disappoint them,” CFO Steve Oakland told a group of financial analysts. However, he added, the existence of this demand is proof of the company’s long-term health.

Like many food processors, TreeHouse has had to raise prices. It did so in December and will do so again in March, company officials said.

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