TreeHouse Foods, Inc. reported that net sales for the second quarter of 2021 totaled USD1.003bn compared to USD1.04bn for the same period last year, a decrease of 3.7%. As a consequence, TreeHouse revised its full year 2021 guidance ranges for adjusted earnings per diluted share from continuing operations of USD2.00 to USD2.50, reported net sales between USD4.20 to USD4.45bn, and free cash flow1 of USD250 – USD300m. The reduction was primarily driven by the second quarter revenue shortfall, continued uncertainty within the macroeconomic environment and its impact on consumer purchasing behavior, further escalation in commodity, freight, and packaging costs and the timing lag related to the impact of pricing actions taken to recover higher input costs, according to a company statement.
“In the second quarter, we continued to navigate an unprecedented operating environment. We lapped last year’s heightened COVID-related demand and took actions to offset the impact of inflation through pricing increases and to address supply chain disruptions,” Steve Oakland, CEO and president said. “While macroeconomic factors have temporarily driven lower-than-expected consumer demand for private brands, we outperformed private label in the majority of our categories, as our service levels remain strong and we continue to engage our retail partners. We have even greater resolve today to execute on our strategy, and we continue to believe the macro impact of government stimulus and other factors will be transitory. As the environment normalizes and inflation translates into higher prices, we believe the demand for private brands will return to its pattern of historical growth.”