TreeHouse Foods tightened its full-year outlook today (6 November) but booked a drop in third-quarter earnings, as one-time charges dented the bottom line.
Reported net earnings fell to US$19.88m in the third quarter to 30 September, down from $22.65m in the prior year period. The US private-label company registered charges related to acquisition and integration expenses, as well as a foreign currency loss on the translation of inter-company notes.
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Shares in the group were down 1.59% to $83.78 at 12:41 ET.
However, on an adjusted basis, TreeHouse earnings were up 8.5%. Adjusted EBITDA was $103.5m, a 32.7% increase compared to the prior year.
Net sales also rose, reaching $795.7m, compared to $567.2m last year, an increase of 40.3%. TreeHouse attributed the gains to “sales from acquisitions and favourable volume/mix”.
The company tightened its full-year EPS range to $3.60-$3.70 from $3.60-$3.75.
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By GlobalDataTreeHouse CEO Sam Reed said he was “extremely impressed” with the quality of recent acquisitions, which have included Protenergy Natural Foods and Flagstone Foods. The company remains on the lookout for further M&A to drive growth, he added.
“The acquisition environment remains robust, and we continue to evaluate potential strategic prospects. The opportunity to consolidate the private-label landscape remains attractive, and we expect to finish the year with substantial availability under our credit facility,” Reed said.
