{"id":523807,"date":"2021-08-05T06:58:10","date_gmt":"2021-08-05T10:58:10","guid":{"rendered":"https:\/\/www.marketnewsdesk.com\/index.php\/treehouse-foods-inc-reports-second-quarter-2021-results\/"},"modified":"2021-08-05T06:58:10","modified_gmt":"2021-08-05T10:58:10","slug":"treehouse-foods-inc-reports-second-quarter-2021-results","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/treehouse-foods-inc-reports-second-quarter-2021-results\/","title":{"rendered":"TreeHouse Foods, Inc. Reports Second Quarter 2021 Results"},"content":{"rendered":"
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Delivered Strategic Progress Through the Completion of Ready-to-eat Cereal Sale<\/h2>\n

Completed $25 Million in Share Repurchase in Q2<\/h2>\n

Service Levels Remain Strong at 98%; TreeHouse Share Outperformed Private Label in the Majority of its Categories<\/h2>\n

HIGHLIGHTS<\/h2>\n

– Revenue of $1.00 billion compared to COVID-impacted $1.04 billion for the same period in 2020.<\/h2>\n

– Loss per diluted share from continuing operations was $(0.09) compared to $(0.05) for the same period in 2020.<\/h2>\n

– Adjusted earnings per diluted share from continuing operations was $0.26 compared to $0.58 for the same period in 2020.<\/h2>\n

– TreeHouse revised its full year 2021 guidance ranges and now expects $2.00 – $2.50 for adjusted earnings per diluted share from continuing operations and $4.20 to $4.45 billion of reported net sales.<\/h2>\n

PR Newswire<\/p>\n<\/p><\/div>\n

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\n OAK BROOK, Ill.<\/span>, Aug. 5, 2021<\/span> \/PRNewswire\/ —\u00a0TreeHouse Foods, Inc. (NYSE: THS) today reported second quarter GAAP loss per diluted share from continuing operations of $(0.09)<\/span> compared to $(0.05)<\/span> for the second quarter of 2020. Adjusted earnings per diluted share from continuing operations1<\/sup>\u00a0was $0.26<\/span> in the second quarter of 2021 compared to $0.58<\/span> in the second quarter of 2020. <\/p>\n

\n Steve Oakland<\/span>, Chief Executive Officer and President commented, “In the second quarter, we continued to navigate an unprecedented operating environment. We lapped last year’s heightened COVID-related demand and took actions to offset the impact of inflation through pricing increases and to address supply chain disruptions. While macroeconomic factors have temporarily driven lower-than-expected consumer demand for private brands, we outperformed private label in the majority of our categories, as our service levels remain strong and we continue to engage our retail partners. We have even greater resolve today to execute on our strategy, and we continue to believe the macro impact of government stimulus and other factors will be transitory. As the environment normalizes and inflation translates into higher prices, we believe the demand for private brands will return to its pattern of historical growth.”<\/p>\n

“In addition to addressing the industry headwinds, we made solid strategic progress in the quarter, completing the sale of the Ready-to-eat Cereal business in June and returning $25 million<\/span> in capital to shareholders in the form of share repurchase,” Mr. Oakland continued. “We remain diligently focused on our long-term strategic objectives to build a company that is well positioned to deliver long-term sustainable growth and create value for our customers and shareholders.”<\/p>\n

“Second quarter adjusted earnings per diluted share was $0.26<\/span>, as lower selling, general and administrative expenses lessened the impact of lower than anticipated sales,” said Bill Kelley<\/span>, EVP and Chief Financial Officer. “The decline in our gross profit margin in the quarter was driven by the timing lag between inflation and pricing initiatives. Pricing necessary to recover our initial expectations for commodity inflation this year has tracked according to our plans, and we anticipate the impact will increasingly be reflected in our results as we move through the second half of the year.”<\/p>\n

OUTLOOK2<\/sup><\/p>\n

TreeHouse revised its full year 2021 guidance ranges for adjusted earnings per diluted share from continuing operations of $2.00<\/span> to $2.50<\/span>, reported net sales between $4.20<\/span> to $4.45 billion<\/span>, and free cash flow1<\/sup>\u00a0of $250<\/span> – $300 million<\/span>. The reduction was primarily driven by the second quarter revenue shortfall, continued uncertainty within the macroeconomic environment and its impact on consumer purchasing behavior, further escalation in commodity, freight, and packaging costs and the timing lag related to the impact of pricing actions taken to recover higher input costs.<\/p>\n

“Ongoing retailer support for private label and the strategic investments we are making in our business give me confidence that we have meaningful growth and shareholder value creation opportunities ahead. While I am disappointed to reduce our full year 2021 guidance, we remain focused on accelerating our strategic journey to build depth and competitive advantage in our growth categories,” said Mr. Oakland.<\/p>\n

“We believe we are well positioned to capitalize on the opportunities across the private label landscape, while maintaining a balanced capital allocation approach of investing in our business, maintaining a strong balance sheet and returning capital to shareholders,” he continued. “The strength of our balance sheet enables us to consider sizable, programmatic, or bolt-on accretive acquisitions that are near-in or closely adjacent to our growth engine categories, as we actively manage our portfolio to drive enhanced growth and value.”<\/p>\n

TreeHouse is providing the following guidance ranges on a continuing operations basis for the third quarter:<\/p>\n