TreeHouse Foods again emphasised its belief in the potential for private-label in the US after rising sales drove a jump in first-quarter profits and led the company to raise its earnings targets.
The US group, which makes own-label ambient goods for US retailers, posted a 28% rise in net income to US$16.3m for the three months to the end of March.
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TreeHouse booked an 11.7% rise in net sales to $397.1m, thanks in part to the first contributions of Sturm Foods, which the company bought in December.
Chairman and CEO Sam Reed said: “We believe our strong first-quarter results are not only reflective of the overall strength of the private-label market, but also support our belief that private label will continue to grow twice as fast as brands, as it has for the last two decades.”
Reed added: “Given the strength we are seeing across the board in our operating segments, we are raising our previously issued guidance of $2.62 to $2.66 in adjusted earnings per share for 2010 to $2.65 to $2.70.”
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