A significant jump in net sales is at the forefront of TreeHouse Foods’ recent First Quarter 2022 results. The supplier reports net sales of $1.14 billion, which totaled $1,141.0 million compared to $1,057.3 million for the same period last year, an increase of $83.7 million or 7.9 percent.
"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," said Steve Oakland, Chief Executive Officer and President. "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 10 largest categories."
Highlights from the report include:
According to the report, the net sales increase was primarily driven by favorable pricing to partially recover commodity and freight cost inflation. Oakland stated that the commercial teams are working collaboratively with customers to successfully implement pricing to recover inflation, and its targeted labor and supply initiatives are delivering slow, steady improvement.
"I'm proud of our strong execution in this dynamic environment," said Bill Kelley, Executive Vice President and Chief Financial Officer. "We delivered strong first quarter net sales growth of 7.9 percent; our pricing initiatives to recover inflation were successful and contributed low-double digit growth as expected; and our progress around improving service enabled us to capture incremental private label volume. Our first quarter performance positions us to be on track to deliver improved profitability in 2022, and we are reaffirming our full year guidance."
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