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Dec 31, 2019
TreeHouse Q4 2019 Earnings Report
Reported fourth quarter results within guidance range and issued 2020 guidance.
Key Takeaways
TreeHouse Foods reported Q4 2019 earnings per diluted share of $0.27, with adjusted earnings per diluted share at $1.10, falling within the company's guidance. The company issued 2020 guidance for adjusted earnings per diluted share of $2.40 to $2.65.
Earnings per diluted share from continuing operations was $0.27 compared to loss per diluted share of $(0.08) for the same period in 2018.
Adjusted earnings per diluted share from continuing operations was $1.10, within the Company's guidance range of $1.03 to $1.23.
Adjusted EBIT margin expanded 90 basis points to 6.2%.
Adjusted earnings per share growth of 21% to $2.39.
Forward Guidance
TreeHouse provided 2020 guidance with adjusted earnings per diluted share from continuing operations of $2.40 to $2.65 and net sales between $4.10 to $4.40 billion.
Positive Outlook
- Second half 2020 revenue is anticipated to accelerate to 2% to 3% growth driven by innovation
- Second half 2020 revenue is anticipated to accelerate to 2% to 3% growth driven by new business wins in Meal Solutions and Baked Goods
- Adjusted EBITDA from continuing operations between $480 to $510 million
- Effective tax rate of 22% to 24%
- Free cash flow of $250 to $300 million, with the priority for cash proceeds to reduce debt
Challenges Ahead
- First half 2020 revenue expected to decline 3% to 5%
- Revenue loss from the prior year that will carry over into 2020 is approximately $175 - $200 million
- Net interest expense between $93 and $97 million
Historical Earnings Impact
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Avg. Return Before/After Earnings
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