TreeHouse Foods: Pre-Announces Fourth Quarter 2015, Issues Preliminary 2016 Earnings Guidance

Oak Brook / IL. (thf) TreeHouse Foods announced that preliminary earnings per share on a fully diluted basis for the full year 2015 are expected to be 2.61 USD to 2.64 USD. Adjusted earnings per share on a fully diluted basis for the full year 2015 are expected to be 3.14 USD to 3.17 USD. Preliminary net sales for the fourth quarter of 2015 of approximately 860 to 870 million USD, represents a decrease of over four percent from the same period last year. The expected decrease in net sales is primarily due to unfavorable Canadian foreign exchange and lower coffee pricing. Gross margins in the quarter are expected to show a 150 basis points improvement, due to improved operating performance and lower commodity costs. The expected tax rate for the quarter is 39.8 percent, higher than anticipated as a result of a state tax ruling late in the fourth quarter. The higher tax rate resulted in approximately a 0.05 USD decline in adjusted EPS.

2016 Preliminary Outlook

With regard to the outlook for 2016, TreeHouse Foods announced that upon completion of the acquisition of ConAgra’s private brands business in the first quarter, the Company anticipates full year earnings of 2.95 USD to 3.10 USD per fully diluted share.

Further details will be provided on TreeHouse’s fourth quarter 2015 earnings webcast on Thursday, February 11, 2016.

«We will be true to our strategy, established at our founding in 2005, to drive shareholder value by building an industry leading portfolio of private label products that offer our customers value without compromise», said Sam K. Reed, Chairman and Chief Executive Officer of TreeHouse Foods.

«We are delighted to be entering the final stages to unite TreeHouse with ConAgra’s private brands businesses. Together, we will grow stronger as the industry leader in customer brands and custom products, extending our reach in the grocery store by over ten shelf stable and refrigerated food categories, as we continue to support our customers’ efforts to build their corporate brands and offer consumers the best combination of choice and value», said Reed.