US: TreeHouse: "signs of life" for industry volumes
TreeHouse CEO Reed signalled firm set to make more acquisitions this year
The CEO of US brand and private-label group TreeHouse Foods has claimed sales volumes in the country's food and beverage are showing signs of improving.
"After two challenging years in the grocery landscape, food and beverage industry volumes have begun to show signs of life," TreeHouse chairman, president and CEO Sam Reed said.
Reed's comments came as TreeHouse filed its 2013 results - and he also underlines the company's desire to make more acquisitions this year.
"No matter what the retail environment will bring, we remain steadfast in our commitment to expanding our private-label footprint, manufacturing custom products and delighting our customers. We are very well positioned to continue expanding our private label portfolio through strategic acquisitions in 2014, as the environment continues to gather steam and our appetite for deals is robust," Reed said.
Deals in the last year or so helped boost TreeHouse's top line. The company acquired dressings and mayonnaise firm Cains Foods in June. Four months later, TreeHouse's move to buy cheese and pudding assets owned by dairy co-op Associated Milk Producers, struck in December in 2012, was also finalised.
TreeHouse's net sales grew 5.1% in 2013 to $2.29bn. Operating income inched up 0.8% to $178.2m. Net income dipped 1.6% to $87m on a higher tax bill.
However, TreeHouse said its adjusted earnings per share, which excluded costs for restructuring and M&A, rose from $2.79 in 2012 to $3.19.
The company anticipates sales growth of 9-10% in 2014, driven primarily by the full-year impact of the Cains Foods and Associated Brands acquisitions.
It expects adjusted earnings per fully diluted share to grow by 10-13% to $3.50-$3.60.
BB&T Capital Markets analyst Brett Hundley said TreeHouse's guidance for 2014 was "slightly below" his forecast.
However, he added: "It includes a number of non-operating items that we had not previously expected; thus, underlying business conditions are better than we had hoped. TreeHouse also signaled strongly that it will be involved in M&A during 2014. Our price target drops to $80 from $83. However, our conviction level on the shares remains high."
Companies: TreeHouse Foods
TreeHouse Foods, Inc. - Strategy and SWOT Report, is a source of comprehensive company data and information. The report covers the company’s structure, operation, SWOT analysis, product and service of...
Canadean's "TreeHouse Foods, Inc. : Consumer Packaged Goods - Company Profile, SWOT & Financial Report" contains in depth information and data about the company and its operations. The profile contain...
Baby Food in the United States industry profile provides top-line qualitative and quantitative summary information including: market share, market size (value and volume 2009-13, and forecast to 2018)...
The report provides a review of the mergers and acquisitions (M&As), partnering deals, and agreements entered into by companies active in the global soups market during February 2014....
Synopsis The report provides a review of the mergers and acquisitions (M&As), partnering deals, and agreements entered into by companies active in the global soups market during April 2014. Summary U...
Fruit and Vegetable Canning, Including Juices and Sauces, Industry (U.S.): Analytics, Extensive Financial Benchmarks, Metrics and Revenue Forecasts to 2021, NAIC 311421 Vital industry-specific data i...
- Focus: ConAgra own-label exit plan is about growth
- How the CGF plans to halve global food waste
- IRI – The opportunity of range optimisation
- Focus: Mexican dairies focus on adding value
- Focus: Will synergies lift Ahold Delhaize in US?
- ConAgra confirms private-label exit
- Kraft Heinz unveils management structure
- Kellogg eyes trends with product launches
- CMA "accepts" Muller's revised Dairy Crest offer
- Kraft faces lawsuit over 'natural' claims