For the quarter ended June 30, the private brand manufacturer recorded a loss of $20.1 million, an improvement compared with the same period of the previous year when the company recorded a loss of $34.2 million.
Sales for the quarter fell to $1,455.8 million from $1,522.2 million. Key drivers of the sales decline included the divestment of TreeHouse’s Soup and Infant Feeding business and the s.k.u. rationalization effort.
“Private label continues to be a strategic imperative for our retail partners,” TreeHouse Foods CEO and President Steve Oakland said when the private brand manufacturer announced second-quarter earnings this past Thursday.
“We delivered second-quarter earnings above our expectations,” said Matthew Foulston, TreeHouse’s chief financial officer. “Sales grew 0.9 percent year over year, excluding the impact of the sale of soup and infant feeding and the SKU rationalization … Operating income was above our expectations.”
Oakland said: “Every day, we strive to provide retailers with high-quality food and beverages, coupled with exceptional service. However, we have yet to really leverage our leadership position in private label and unleash the power of scale. Our teams are energized, they’re on board, and we will continue our focus on operational excellence. I continue to be excited about the private label opportunity and confident that these programs are the right initiatives to improve the long-term health of the company.”