Treehouse Foods (NYSE: THS) reported Q1 EPS of $0.36, $0.04 better than the analyst estimate of $0.32. Revenue for the quarter came in at $1.06 billion versus the consensus estimate of $1.09 billion.

"I'm proud of the underlying strength in our business that is reflected in our first quarter results, as revenue across most of our growth categories continued to outpace the rest of private label, while delivering strong profitability," said Steve Oakland, Chief Executive Officer and President. "Our results demonstrate ongoing progress on our strategic journey to build a company with long-term sustainable growth. We remain focused on improving our operational and commercial platforms, optimizing our portfolio and investing in people and talent to create value for our customers as their preferred manufacturing and distribution partner."

"We posted a strong start to the year, even as we lapped the unprecedented pantry stocking event last spring related to the pandemic," said Bill Kelley, EVP and Chief Financial Officer. "Importantly, we delivered adjusted gross profit margin1 of 18.1% and adjusted EPS of $0.36 in the face of increased inflationary pressures and weather-related disruption. In addition to delivering strong profitability, we improved our capital structure with the full redemption of our 6.000% notes due in 2024 and the refinancing of our credit facility. The enhanced strength of our balance sheet and our strong free cash flow will enable us to continue to execute a balanced capital allocation approach - focusing on investing to drive organic growth and returning capital to shareholders."

GUIDANCE:

Treehouse Foods sees Q2 2021 EPS of $0.20-$0.30, versus the consensus of $0.54. Treehouse Foods sees Q2 2021 revenue of $1.02-1.07 billion, versus the consensus of $1.06 billion.

Treehouse Foods sees FY2021 EPS of $2.80-$3.20, versus the consensus of $2.96. Treehouse Foods sees FY2021 revenue of $4.4-4.6 billion, versus the consensus of $4.51 billion.

OUTLOOK

TreeHouse reaffirmed its full year 2021 guidance ranges for adjusted earnings per diluted share from continuing operations of $2.80 to $3.20 and reported net sales between $4.40 to $4.60 billion.

"The enhancements we have made to strengthen our business and improve our operating performance, combined with our commitment to excellent service and focus on our customers are critical as we navigate today's inflationary environment and continued pandemic-related uncertainty," Mr. Oakland continued. "As we make investments in our capabilities and adapt our supply chain to build greater depth in our growth categories, we are confident we will further capitalize on our leading portfolio of private label foods and beverages to drive greater value for all of our stakeholders."

TreeHouse continues to expect inflation to accelerate across several agricultural commodities, particularly edible oils, and higher transportation costs. Coupled with the higher cost inventory produced in the first quarter as a result of ingredient cost inflation and weather disruption, the Company expects temporary pressure on margins and earnings for the second quarter due to the timing lag of when pricing initiatives are realized. TreeHouse has initiated additional pricing actions to mitigate the impact of inflation and expects the benefit of these actions will be reflected in the results of the second half of 2021.

TreeHouse is providing the following guidance ranges on a continuing operations basis for the second quarter:

• Adjusted earnings per diluted share from continuing operations of $0.20 to $0.30
• Reported net sales between $1.02 and $1.07 billion
• Interest expense between $18 and $19 million
• Adjusted effective tax rate between 25% and 27%

For earnings history and earnings-related data on Treehouse Foods (THS) click here.