TreeHouse posts gains in Q1 compared to last year

Oak Brook, Ill.-based TreeHouse Foods Inc. today reported first-quarter earnings per fully diluted share of $0.49 compared to a loss of $0.06 reported for the first quarter of 2016. The company reported adjusted earnings per fully diluted share for the first quarter of $0.61 compared to adjusted earnings of $0.48 for the first quarter of 2016.

Net sales for the first quarter totaled $1.5 billion compared to $1.3 billion for the same period last year, an increase of 20.9 percent, due to an additional month of sales from the acquisition of the private brands operations of ConAgra Foods Inc. and favorable volume, primarily in the beverages segment, which was partially offset by lower pricing.

Net sales for various TreeHouse business segments increased as follows:

• Baked goods, up 55.4 percent.
• Beverages, up 19.2 percent.
• Condiments segment, up 4.9 percent.
• Meals, up 18.9 percent.
• Snacks, up 12.7 percent.

"This quarter we took meaningful actions to deliver on our transformation," said TreeHouse Chairman and CEO Sam K. Reed in a statement. "We are particularly pleased with the excellent progress we have made toward the integration of [formerly ConAgra’s] private brands.

“Our information technology work is progressing ahead of schedule and will strengthen our ability to support our customers' private label growth initiatives,” he continued. “In addition, we completed the closure of two previously announced facilities, and at the end of April we announced the sale of our soup and infant feeding business to Insight Equity."

The retail landscape is evolving, and consumer buying patterns are shifting from traditional channels to specialized outlets and e-commerce channels, Reed noted. 

“Many of our customers are responding by reinvesting in their corporate brands to offer consumers differentiated and more targeted offerings,” he said. “Given the breadth and scope of our portfolio, we are uniquely positioned to serve our customers as they build their corporate brands.

“As we enter the second quarter, we are intensely focused on growing our top line, optimizing our operations, and averting margin compression as we enter an inflationary commodity environment."