Oak Brook / IL. (thf) TreeHouse Foods Inc. reported fourth quarter GAAP earnings per diluted share from continuing operations of USD 1.29 compared to USD 0.27 reported for the fourth quarter of 2019. The Company generated adjusted earnings per diluted share from continuing operations of USD 1.07 in the fourth quarter of 2020 compared to USD 1.10 in the fourth quarter of 2019.
«I’m incredibly proud of our TreeHouse teammates and all that we accomplished in 2020,» said Steve Oakland, Chief Executive Officer and President. «The progress we’ve made at TreeHouse over the last several years against our strategic pillars has strengthened our business, improved our efficiency and profitability. Our reorganization early last year to a two-division structure – Snacking + Beverages and Meal Preparation – enabled each of our businesses to focus on their unique strategies and tactics that would best position them for success – delivering for our customers and keeping our communities nourished. This differentiated us from our competition as we serviced increased food-at-home demand this past year.»
Oakland continued, «Although we faced significant challenges in 2020 related to the Covid-19 pandemic, we demonstrated great resilience. We have also identified clear learnings that shape our path forward to further advance our customer relationships and create opportunities to drive growth and greater profit expansion. As we move into 2021, we look to capitalize on our leading portfolio of private label foods and beverages and build upon our successes from 2020 to drive greater value for all of our stakeholders.»
«Fourth quarter net sales of USD 1.18 billion grew 3.3 percent, while adjusted earnings per diluted share from continuing operations of USD 1.07 reflected the impact of significantly higher labor and freight costs and disruptions caused by the Covid-19 pandemic,» said Bill Kelley, EVP and Chief Financial Officer. «In addition to delivering improved profitability, I’m especially pleased that we generated very strong free cash flow of USD 298 million in 2020. This allowed us to accelerate our deleveraging efforts, and we finished the year well within our target range of 3.0 – 3.5x net debt to Ebitda, per our bank covenants. As a result, we have revised our capital allocation strategy to focus on maintaining a strong balance sheet; business reinvestment – such as the acquisition of Ebro’s Riviana Foods U.S. branded pasta business; and returning capital to shareholders via stock buybacks, with our repurchase of USD 25 million in shares in the fourth quarter.»
For additional information please read the Company’s PDF file below (182 KB):
20210213-TREEHOUSE-Q4-2020.