US private-label manufacturer TreeHouse Foods today (7 August) raised its 2014 earnings forecast despite a fall in the first half of the year.
The company lifted adjusted earnings per share guidance by US$0.10 to US$0.15 to a range of US$3.60 to US$3.75, reflecting the “accretion” from the recently-completed acquisitions of snacks group Flagstone Foods and soup maker Protenergy Natural Foods.
TreeHouse said the forecast was subject to asset valuation work on goodwill and amortisation of intangibles.
In the six months to the end of June, TreeHouse generated net income of US$36.1m, compared to US$41.5m a year earlier. Interest and the loss on the extinguishment of debt hit TreeHouse’s bottom line.
The group’s operating income reached US$94.9m, up from US$85.3m a year ago.
Higher sales offset increases in the cost of goods sold and SG&A expenses. Net sales were up 16.9% to US$1.24bn, helped in part by the company’s recent acquisitions. TreeHouse pointed to a benefit from underlying volume and mix in the second quarter.
Shares in TreeHouse wree up 3.01% at US$78.29 at 13:08 ET.