TreeHouse Foods Q4 Revenue Increases
TreeHouse Foods has reported net sales of $404.78m for the fourth quarter ended December 31, 2009, an increase of 1.7% compared to $398.82m for the same quarter previous year.
Operating income for the quarter was $31.11m compared to $31.49 for the corresponding quarter prior year. Net income for the quarter was $22.1m or $0.66 per diluted share compared to $6.8m or $0.21 for the previous year quarter.
Retail grocery sales increased 5.1% compared to last year's quarter and unit sales increased 3.2%, as the company's private label offerings continue to realize share gains across nearly all product categories.
The Food Away From Home segment sales were up 4.2% (2.0% excluding currency) and unit sales were up 2.1% compared to last year as new products and increased distribution points offset the negative trends in the food away from home marketplace.
Sales in the Industrial and Export segment declined 11.9% compared to the prior year due to lower selling prices associated with lower commodity costs and lower unit sales of co-packed products.
Total gross margins for the quarter improved by 320 basis points to 23.3% compared to 20.1% last year. The improvement was due to carry over pricing compared to last year, more favorable input costs, and internal efficiencies from productivity gains. The margins improved principally in pickles, non-dairy creamer, salad dressings and soup.
Sam Reed, chairman and CEO of TreeHouse Foods, said, We finished the year on an excellent note with continued unit sales growth and further improvement in margins. Private label continues to be fueled by both consumer preference for value and our customers' goal to increase profitability. We see strong momentum heading into 2010.
For the fiscal 2010 TreeHouse believes that private label volume growth will continue to outpace the overall market for retail grocery sales, and as such, expects unit volumes to increase in the range of 2%. Pricing is not anticipated to be a factor in revenue growth in 2010 as the company's input costs appear to be relatively stable.
TreeHouse expects to close the Sturm transaction later in the first quarter. The company expects the transaction will add another $0.27 to $0.3 in EPS in calendar year 2010. On a full year, proforma basis, it is anticipated that Sturm will contribute $0.38 to $0.4 in earnings, resulting in over 16% accretion before one-time items.
Related Insight
Suppliers Directory
Processed Foods Bakery & Cereals Confectionary Pasta & Noodles Savory Snacks Sweets & Desserts
Condiments & Ingredients Ingredients Oil & Fats Sauces & Spreads Soups
Chilled & Deli Food
Special Foods Baby Food Health Foods
Food Technology Process & Production IT & Software Packaging Sustainability
Marketing & Regulatory Regulatory & Food Safety Supply Chain Retail
Sauces & Spreads Intelligence
Until recently, the beverages market was divided simply between alcoholic and non-alcoholic beverages. As consumers’ tastes grew more sophisticated and demand surged for a variety of beverage options catering to lifestyle changes and health concerns, the beverages industry has responded with a dizzying array of options to choose from. This report focuses on the U.S. and world markets for beverages across several broad categories. For the purposes of this study, TriMark Publications has divided the global beverages markets into the following product segments include: 1) alcoholic beverages such as wines, beers and spirits; 2) non-alcoholic beverages such as bottled water and milk; 3) brewed beverages such as coffees and teas; 4) carbonated beverages such as sodas and soft drinks; 5) non-carbonated juice products both fresh and pre-packaged; and 6) energy drinks which are generally caffeinated beverages in both carbonated and non-carbonated forms. For each market segment, this study presents the latest information on size, growth rates, sales projections and factors influencing growth in the U.S. and internationally. Reports Buy online from $449
Comments may be moderated for spam, obscenities or defamation.