US private-label manufacturer TreeHouse Foods has announced plans for expansion, following an increase in sales and profits in its third-quarter.
TreeHouse chairman, president and CEO Sam Reed said the company will grow in 2012, driven internally by organic growth and externally by strategic expansions.
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“As always, we are focused on strategy, category dynamics and go-to-market synergies as we evaluate potential acquisition candidates,” Reed said.
On Friday (4 November) the company booked an increase in profits, on the back of higher prices. Net income was US$30.4m for the three months ended 30 September, up 22.2%. Operating income reached $52.7m, up 10.2% on the same period last year. Net sales jumped 13.7%, reaching $528.1m.
Sales for the North American retail grocery segment increased 15.8% (4.9% excluding acquisitions) as sales of private label food grew as consumers and retailers “maintained their emphasis” on value products.
However, sales for the food away from home segment were down 4.7% compared to last year (4.9% decrease excluding acquisitions), due to “exiting unprofitable processed pickle businesses”. The industrial and export segment jumped 28% during the period.
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By GlobalDataFor the nine months ended 30 September, TreeHouse posted a 2.7% increase in net income, reaching $64.5m. Operating profit grew 9.2% to $130.9m. The group saw a 15.8% increase in sales, reaching $1.51bn for the nine month period.
Reed said the company expects to finish the year with the “strongest quarterly results” in the company’s history and its guidance of $2.90 and $3.00 per share for the full-year remains unchanged.
