US: TreeHouse sees Q1 sales strength
TreeHouse upbeat on FY earnings outlook
TreeHouse Foods has said it expects to report a 15% rise in first-quarter sales, boosted by acquisitions and the contribution from higher volumes and sales mix.
The US company said sales are estimated to have risen 14.6% to a "better than expected" US$619m in the three months to the end of March. North American grocery retail sales gained 17.2%.
Growth more than offset the impact of lower than anticipated Canadian exchange rates and deferred manufacturing costs, TreeHouse said. Adjusted earnings per share is expected to fall in a range of $0.77-0.80 in the period.
Looking to the full year, TreeHouse reiterated its outlook for 10-13% EPS growth, with is expected to fall in a range of $3.50-3.60 per share.
In a separate announcement, TreeHouse revealed it has entered into a deal to acquire Canadian soup and broth manufacturer Protenergy Natural Foods. The acquisition, which is expected to close in the back half of the year, is expected to add a further $0.05-0.07 to EPS.
TreeHouse Foods Confirms First Quarter and Full Year 2014 Adjusted EPS Guidance; Announces Strong First Quarter Net Sales Growth
OAK BROOK, Ill., April 21, 2014 /PRNewswire/ -- TreeHouse Foods, Inc. (NYSE:THS) today confirmed that it expects to report first quarter 2014 adjusted earnings per share in the range of $0.77 to $0.80. Additionally, the Company said that net sales in the first quarter finished better than expected, up 14.6% from last year, to approximately $619 million, due to acquisitions and 3.4% volume/mix contribution. Sales in the North American Retail Grocery segment rose 17.2%, of which 12.2% was due to recent acquisitions while volume/mix contributed 5.9%, led by continued growth of its single serve hot beverage program. The strong total Company net sales growth offset the negative effects of lower than anticipated Canadian exchange rates and deferred manufacturing costs that reduced consolidated gross margins.
The Company also reaffirmed its full year 2014 guidance for 10% to 13% earnings per share growth to a range of $3.50 to $3.60 per share before considering the accretion expected from the Protenergy acquisition.
"We have a very promising year ahead of us, and are pleased with our operating results in the first quarter. We remain confident that we are on track to deliver full year earnings per share growth of 10% to 13%, which is in line with our original guidance," said Sam K. Reed, Chairman, President and Chief Executive Officer ofTreeHouse Foods.
"Separately, we are also pleased to be announcing the acquisition of Protenergy Natural Foods this morning, a manufacturer of premium quality food and beverage products," Mr. Reed continued. "The acquisition of Protenergy is expected to expand our packaging capabilities, leverage our R&D proficiency as shelf stable liquid packaging evolves from cans to cartons, and presents meaningful growth opportunities in both existing and adjacent food and beverage categories."
Original source: TreeHouse Foods
Companies: TreeHouse Foods
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