US jam-to-salsa maker TreeHouse Foods has booked a fall in half-year profits despite rising sales as higher commodity costs ate into earnings.
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The company saw operating income tumble 10.1% to US$31.5m during the first six months of 2008 as commodity and energy costs rose.
Chairman and CEO Sam Reed said “pricing plans” put into place during the second quarter of the year would boost margins in the months ahead. “We will see more pricing materialise in the third and fourth quarters as we ship our winter season products like soup and non-dairy creamer,” Reed said.
Net sales were up 41.3% to $728m on the back of recent acquisitions San Antonio Farms, E.D. Smith and DeGraffenreid.
Reed said TreeHouse was keeping its full-year earnings share per guidance of $1.50-1.55 before unusual items.
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