NYSE$THS

TreeHouse Foods Inc. · Q4 2020 earnings

Q4 2020 earnings · · Investor relations

Briefing

Reported top-line growth, strong cash flow, and deleveraging, while also providing an update on the Riviana acquisition and value creation initiatives.

TreeHouse Foods reported a 3.3% increase in net sales and a 4.0% increase in organic net sales for the fourth quarter of 2020. Earnings per diluted share from continuing operations was $1.29, and adjusted earnings per diluted share from continuing operations was $1.07. The company completed the acquisition of Ebro's Riviana Foods U.S. branded pasta business in December and issued 2021 guidance for adjusted earnings per diluted share from continuing operations of $2.80 to $3.20 and revenue guidance of $4.40 to $4.60 billion.

  • Net sales grew by 3.3% with organic net sales up by 4.0% compared to Q4 2019.
  • Earnings per diluted share from continuing operations was $1.29, significantly higher than the $0.27 reported in Q4 2019.
  • Adjusted earnings per diluted share from continuing operations was $1.07, within the company's guidance range.
  • The acquisition of Ebro's Riviana Foods U.S. branded pasta business was completed in December, expected to contribute $25 to $30 million in adjusted EBITDA and $0.20 to $0.30 in adjusted earnings per diluted share in 2021.

Headline financials

Total Revenue

$1.18B

Previous: $1.14B+3.2%
EPS (adj)

$1.07

Previous: $1.10-2.7%
Capital Expenditures

$23.3M

Previous: $37.2M-37.4%
Free Cash Flow

$298M

Previous: $225M+32.5%
Net Income

$73.2M

Previous: $15.3M+378.4%
Operating Income

$53.8M

Previous: $31.9M+68.7%
Gross Profit

$228M

Previous: $225M+1.2%
Cash & Equivalents

$365M

Previous: $202M+80.2%
Total Assets

$5.49B

Previous: $5.14B+6.7%
Stock-Based Comp

$5.4M

Previous: $5.1M+5.9%

Revenue & EPS history

TreeHouse · Revenue · Quarterly

$1.18B

Q4 2020+3.2%vs Q4 2019
Beat estimate in 13 of 16 quarters(81%)
ActualEstimate

Forward guidance

TreeHouse Foods provided 2021 guidance ranges, anticipating continued focus on customer service amidst uncertainties related to COVID-19, while remaining confident in the private label opportunity.

Tailwinds

  • Adjusted earnings per diluted share from continuing operations of $2.80 to $3.20.
  • Reported net sales between $4.40 to $4.60 billion.
  • Adjusted EBITDA from continuing operations between $525 to $570 million.
  • Adjusted effective tax rate between 24% and 25%.
  • Diluted weighted average shares outstanding of approximately 56.0 to 56.5 million shares.

Headwinds

  • Significant inflation across several agricultural commodities, specifically oils (coconut, soybean, and palm), wheat, and oats.
  • Uncertainties around COVID-19 persist and continue to affect the business.
  • Interest expense between $84 and $90 million.
  • Capital expenditures of approximately $140 million.
  • Impact of pricing actions to offset inflation will be evident in the second half of 2021.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 15 quarterly earnings reports

Historical avg

-1.1%

Avg return

Earnings day

+0.5%

Avg return

5 days after

-1.9%

Avg return

30 days after

43%

29 / 67 earnings

Positive

+23.3%

Q3 2025

Best reaction

-36.5%

Q3 2017

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q4 2025
Q3 2025+23.3%+25.9%+25.4%
Q2 2025-6.5%-3.5%-10.7%
Q1 2025-5.5%-3.5%-6.6%
Q4 2024-0.6%-8.4%-15.2%
Q3 2024-15.1%-12.9%-8.5%
Q2 2024-5.1%+0.4%+5.1%
Q1 2024-4.7%-5.2%-0.9%
Q4 2023-14.2%-14.1%-14.1%
Q3 2023-9.0%-8.8%-2.8%
Q2 2023-9.9%-8.9%-14.0%
Q1 2023-1.4%-4.1%-10.4%
Q4 2022-1.4%+1.1%-2.1%
Q3 2022-2.5%-2.6%-2.1%
Q2 2022+8.0%+11.4%+3.5%
Q1 2022+22.7%+27.0%+28.1%
Q4 2021+15.4%+14.8%-5.6%
Q3 2021+3.9%
Q2 2021-6.3%
Q1 2021+0.8%
Q4 2020-2.5%
Q3 2020-6.0%
Q2 2020-4.6%
Q1 2020+5.2%
Q4 2019-0.7%
Q3 2019-11.0%
Q2 2019-3.8%
Q1 2019-13.0%
Q4 2018+0.0%
Q3 2018-1.9%
Q2 2018+8.6%
Q1 2018+20.6%
Q4 2017-11.0%
Q3 2017-36.5%
Q2 2017-11.6%
Q1 2017-12.1%
Q4 2016+12.1%
Q3 2016-20.5%
Q2 2016-1.5%
Q1 2016+8.1%
Q4 2015+2.4%
Q3 2015+1.3%
Q2 2015-3.0%
Q1 2015-10.4%
Q4 2014-9.8%
Q3 2014-5.8%
Q2 2014+3.1%
Q1 2014-4.0%
Q4 2013+10.7%
Q3 2013-2.1%
Q2 2013+4.0%
Q1 2013-0.0%
Q4 2012+11.0%
Q3 2012-1.8%
Q2 2012-12.7%
Q1 2012+0.1%
Q4 2008+2.1%
Q4 2011+2.1%
Q3 2011-1.7%
Q2 2011+2.8%
Q1 2010+0.7%
Q1 2011+2.2%
Q4 2010-0.5%
Q3 2009+5.9%
Q3 2010+5.9%
Q4 2009+4.4%
Q2 2009+4.4%
Q2 2010+4.4%

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