TreeHouse Foods (THS) on Friday posted lower-than-expected fourth-quarter results and a downbeat 2025 revenue outlook amid slowing growth trends for the food category.

The food and beverage company expects adjusted sales to come in between $3.34 billion and $3.4 billion in 2025, representing an annual decline of 1% to growth of 1%. A drop in organic volume and mix is expected to be countered by a pricing gain. The Street is modeling for revenue of $3.43 billion in the year.

"We continue to see a challenging macro food environment and slowing category growth as it relates to our top line outlook," Chief Financial Officer Patrick O'Donnell said during an earnings call with analysts, according to a FactSet transcript.

Adjusted earnings before interest, taxes, depreciation and amortization are expected between $345 million and $375 million in the year, compared with $337.4 million in 2024.

"The board and management are executing a plan to drive more profitable business through the organization, including making strategic decisions on margin management on new and existing business with a goal of prioritizing gross profit dollars," Chief Executive Steve Oakland said in a statement. "We are also focused on additional efficiency opportunities across the organization that, along with declining levels of (capital expenditure) as we complete growth-related investments, can drive improved profitability and cash flow."

For the quarter ended December, TreeHouse Foods posted adjusted earnings of $0.95 per share, up from $0.77 the year before but below the FactSet-polled consensus of $0.97. Sales slipped 0.6% year over year to $905.7 million, trailing analysts' view for $907.7 million.

Volume and mix rose 3.8%, weighed down by the impact of the griddle product facility restoration following a related recall. In October 2024, TreeHouse Foods recalled products made at its Ontario facility over food quality and safety concerns. The facility resumed shipping products in recent weeks, Oakland told analysts. The company in September 2023 initiated a recall of certain broth products produced at its Cambridge, Maryland, facility.

"Despite a slower macro environment and two significant supply chain issues, our teams made steady progress executing on our supply chain initiatives amidst a difficult consumer backdrop across food and beverage categories," Oakland said in the statement.

TreeHouse Foods' shares rose 9.6% in Friday trading.

For the first quarter, the company expects adjusted sales between $785 million and $800 million, which is a 3.5% decline at the mid-point year over year.