TreeHouse Foods, a leading private-label food and drink maker, experienced a decrease in profit in the second quarter. However, despite declining volumes, the company managed to increase its sales by 4.1% due to higher prices.
In the same quarter last year, TreeHouse Foods reported a loss of $29.4 million, or 53 cents a share. This year, they posted a profit of $23.3 million, or 41 cents a share. Adjusted earnings, excluding one-time items, were in line with analyst forecasts at 42 cents a share.
Sales for the quarter reached $843.6 million, up from $810.2 million the previous year. Analysts had expected sales to reach $831.8 million.
The company attributed the growth in sales to the implementation of higher prices. However, they also noted a decline in volumes. TreeHouse Foods explained that this decline was mainly due to the fulfillment of certain customer orders earlier than planned in the first quarter, as well as shifting food and beverage consumption trends.
Despite a decrease in profit, TreeHouse Foods saw their shares rise by 1.9% to $53 in premarket trading.