Price increases lead TreeHouse income higher
OAK BROOK, ILL. — Price increases contributed to an 11% increase in income at TreeHouse Foods, Inc. during the first quarter.
For the quarter ended March 31 the company had income of $22,074,000, equal to 61c per share on the common stock, which compared with income of $19,808,000, or 56c per share, during the same quarter of the previous year. Sales for the quarter were $523,811,000, up 6% from $493,513,000.
“Although the macro environment for food manufacturers remained challenging, we are encouraged by our first-quarter results,” said Sam K. Reed, chairman, president and chief executive officer. “We experienced continued softness in our cold weather products due to unseasonably warm weather; however, the remainder of our retail grocery portfolio performed very well and posted volume growth of 5.5%.
“In April, we were also pleased to close the acquisition of Naturally Fresh with its portfolio of premium refrigerated dressings, sauces, marinades and dips. Naturally Fresh complements our existing lineup of private label dressings, dips and salsa; expands our refrigerated manufacturing and packaging capabilities and broadens our distribution footprint.”
The company also said it is reaffirming 2012 adjusted earnings per share guidance of $3 to $3.15 but expects its revenue growth to be slightly below the original guidance of 8% to 9%.
“We remain steadfast in our belief that private label is absolutely the right place to be as both consumers and customers seek quality, convenience and value without compromise,” Mr. Reed said. “With a healthy balance sheet and strong cash flow, we are well positioned to continue our pursuit of acquisitions — both tuck-in and larger scale — that present opportunities for organic growth, favorable category dynamics and go-to-market synergies.”