TreeHouse Q4 2019 Earnings Report
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.
TreeHouse
TreeHouse
TreeHouse Revenue by Segment
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
- Pivot to growth is taking longer than originally anticipated
- Carryover impact of business that was lost last year
Revenue & Expenses
Visualization of income flow from segment revenue to net income