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Sep 30, 2021
TreeHouse Q3 2021 Earnings Report
Third quarter top- and bottom-line results were delivered within guidance range and successful pricing actions to recover inflation were reflected in net sales.
Key Takeaways
TreeHouse Foods reported a 5.3% increase in net sales to $1.10 billion, driven by pricing actions and the pasta acquisition. However, earnings per diluted share decreased to $0.12, and adjusted earnings per diluted share fell to $0.46 due to commodity inflation and supply chain disruptions.
Net sales increased by 5.3% compared to the same period in 2020, reaching $1.10 billion.
Earnings per diluted share from continuing operations was $0.12, down from $0.20 in 2020.
Adjusted earnings per diluted share from continuing operations was $0.46, compared to $0.71 in the previous year.
Full year 2021 guidance updated: net sales expected in the $4.20 to $4.325 billion range; adjusted earnings per diluted share of $1.08 to $1.28; and free cash flow of at least $100 million.
Forward Guidance
TreeHouse updated its full year 2021 guidance ranges and provided fourth quarter 2021 guidance. Net sales are expected to be in the $4.20 to $4.325 billion range, with $1.04 to $1.16 billion expected in the fourth quarter.Adjusted earnings per diluted share from continuing operations of $1.08 to $1.28, with $0.00 to $0.20 expected in the fourth quarter. Free cash flow of at least $100 million.
Challenges Ahead
- Current operating constraints are expected to limit the Company's ability to service strengthening demand.
- Escalating inflation
- Timing lag for pricing recovery to be reflected
- Significantly higher costs related to labor
- Supply chain disruption
Historical Earnings Impact
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Avg. Return Before/After Earnings
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