Sector News

TreeHouse Foods profit halves; CFO to retire

August 5, 2016
Consumer Packaged Goods

TreeHouse Foods Inc. said revenue doubled in its latest quarter while profit halved, as the company works to integrate the private-label business it bought from ConAgra Foods Inc.

TreeHouse also said Chief Financial Officer Dennis Riordan would retire and that Chief Operating Officer Christopher Sliva would become its president. The company has begun a search for its new CFO.

TreeHouse’s earnings per share met Wall Street expectations, though revenue missed them. The company said its bottom line was hurt by a voluntary recall of sunflower seeds potentially contaminated with Listeria.

The Oak Brook, Ill., food company recently acquired the ConAgra Foods Inc.’s private-label business for about $2.7 billion, a bet that comes amid stiff competition for shelf space and sluggish growth for conventional packaged foods. In the segment that sells branded and private-label products, sales more than doubled, to $1.27 billion, almost exclusively due to the acquisition.

Sales in its segment that sells to restaurant chains and food distributors rose 28%, to $124.7 million. Sales in its industrial segment rose 84%, to $152.3 million.

In all, Treehouse reported a profit of $15.6 million for the period, or 27 cents a share, compared with a profit of $31.4 million, or 72 cents, a year prior. The number of shares outstanding increased 31% in the period. Excluding certain items, such as the sunflower seed recall, the company said it earned 54 cents a share. Revenue more than doubled, to $1.54 billion.

Analysts polled by Thomson Reuters projected 54 cents in earnings per share on $1.56 billion in sales.

Shares in the company, up 16% in the past three months, fell 1.9% to $99.60 in morning trading.

The company reaffirmed its annual adjusted earnings per share guidance.

By Austen Hufford

Source: Wall Street Journal

comments closed

Related News

June 16, 2024

Mondelēz, Lotus Bakeries partner to expand Biscoff brand in India, develop co-branded Chocolates

Consumer Packaged Goods

In addition, the two companies will collaborate on developing and launching new chocolate innovations that combine the signature Biscoff flavour and texture with Mondelēz’s iconic brands like Cadbury and Milka. The first co-branded chocolate products are expected to hit the shelves in the UK and Europe in early 2025.

June 16, 2024

Danone, DMC, Michelin and Crédit Agricole Centre France to create precision fermentation platform

Consumer Packaged Goods

The Biotech Open Platform aims to accelerate precision fermentation development by scaling up lab-tested innovative products and processes. By 2025, the project plans to install a demo-scale production line, including a fermenter and purification equipment, with additional equipment and a second production line to follow.

June 16, 2024

Kikkoman breaks ground on $560m US production facility

Consumer Packaged Goods

The new 240,000-square-foot Jefferson site is set on a 100-acre plot at the heart of what will be the 200-acre Food and Beverage Innovation Campus. The plant will be fully integrated and automated using advanced mobile technology. It has been designed for flexibility, speed, efficiency and scalability, with the ability to make smaller or larger batch sizes as needed.

How can we help you?

We're easy to reach