TreeHouse Foods 2Q net sales increase 7 percent
OAK BROOK — TreeHouse Foods Inc. today reported second quarter net sales increases 7.1 percent due to price increases for its products as well as additional sales from its recent acquisition of the Naturally Fresh brand.
Sales for the second quarter totaled $527.4 million compared to $492.6 million last year.
“We are very pleased with our overall performance for the second quarter,” said Sam K. Reed, Chairman, President and Chief Executive Officer. “Excluding the soup business, our retail grocery volume grew 1.9%, with dry dinners, pasta sauces and salsa all posting growth in the double-digits. Clearly our customers see the value of a strong private label portfolio of products during these difficult times.”
Earnings for the quarter were 53 cents per fully diluted share, compared to 39 cents per fully diluted share reported for the second quarter of last year. The company reported adjusted earnings per share, excluding unusual items as described below, of 60 cents compared to 43 cents in the prior year.
The results included several unusual items that affected the year-over-year quarterly comparison, the company said in a release. That included a 4 cents per share expense associated with the acquisition of Naturally Fresh Inc., a 4 cent per share loss on the mark-to-market adjustment of the company’s commodity agreements, and a 1 cent per share gain on the foreign currency translation of cash held at E.D. Smith.
Selling, distribution, general and administrative expenses were $56.6 million for the quarter, a decrease of 14.5 percent from $66.2 million in the second quarter of 2011. The decrease was due primarily to lower distribution and delivery costs resulting from the efficiencies of last year’s warehouse consolidation program and lower incentive based compensation costs.
Other operating (income) expense in the quarter was insignificant compared to $1.3 million in the prior year. Last year’s expense was primarily related to the closure of the Springfield, Missouri pickle plant.
Interest expense in the quarter was $12.4 million compared to $13.5 million last year. The decrease was due to lower interest rates.
Income tax expense increased in the quarter to $8.0 million due to higher pretax income. The Company’s second quarter effective income tax rate of 29.0% was lower than last year’s second quarter rate of 32.5% due to the impact of the repayment of certain intercompany debt and a decrease in the Canadian statutory tax rate.
Net income for the quarter totaled $19.5 million compared to $14.3 million last year.