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Mar 31, 2021

TreeHouse Q1 2021 Earnings Report

Delivered strong Q1 profitability despite challenging macro conditions and improved capital structure through redemption of 2024 notes and credit facility refinancing.

Key Takeaways

TreeHouse Foods reported a decrease in net sales by 2.5% to $1.06 billion, but delivered strong profitability with an adjusted gross profit margin of 18.1% and adjusted EPS of $0.36. The company reaffirmed its full year 2021 guidance.

Revenue of $1.06 billion, gross profit margin of 17.1% and adjusted gross profit margin of 18.1%.

Earnings per diluted share from continuing operations was $0.01 compared to a loss of $(0.58) for the same period in 2020.

Adjusted earnings per diluted share from continuing operations was $0.36 compared to $0.37 for the same period in 2020.

TreeHouse reaffirmed its full year 2021 guidance ranges of $2.80 - $3.20 for adjusted earnings per diluted share from continuing operations and $4.40 to $4.60 billion of reported net sales.

Total Revenue
$1.06B
Previous year: $1.09B
-2.6%
EPS
$0.36
Previous year: $0.37
-2.7%
Gross Profit
$181M
Previous year: $195M
-7.1%
Cash and Equivalents
$48.8M
Previous year: $330M
-85.2%
Free Cash Flow
-$36.8M
Previous year: $37.4M
-198.4%
Total Assets
$5.14B
Previous year: $5.27B
-2.4%

TreeHouse

TreeHouse

Forward Guidance

TreeHouse reaffirmed its full year 2021 guidance ranges for adjusted earnings per diluted share from continuing operations of $2.80 to $3.20 and reported net sales between $4.40 to $4.60 billion. TreeHouse is providing the following guidance ranges on a continuing operations basis for the second quarter: •Adjusted earnings per diluted share from continuing operations of $0.20 to $0.30 •Reported net sales between $1.02 and $1.07 billion •Interest expense between $18 and $19 million •Adjusted effective tax rate between 25% and 27%