TreeHouse Foods, Inc (THS) has reported a 30.71 percent jump in profit for the quarter ended Sep. 30, 2016. The company has earned $37.17 million, or $0.65 a share in the quarter, compared with $28.44 million, or $0.65 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $40.30 million, or $0.70 a share compared with $37.69 million or $0.86 a share, a year ago. Revenue during the quarter surged 98.69 percent to $1,586.85 million from $798.64 million in the previous year period. Gross margin for the quarter contracted 188 basis points over the previous year period to 17.99 percent. Total expenses were 95.11 percent of quarterly revenues, up from 92.21 percent for the same period last year. That has resulted in a contraction of 290 basis points in operating margin to 4.89 percent.
Operating income for the quarter was $77.59 million, compared with $62.23 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $169.47 million compared with $99.81 million in the prior year period. At the same time, adjusted EBITDA margin contracted 182 basis points in the quarter to 10.68 percent from 12.50 percent in the last year period.
"The third quarter was a tale of two cities," said Sam K. Reed, chairman and chief executive officer. "Our legacy business continued to perform well, paced by Retail volume/mix growth of 4.6% and 80 basis points of direct operating income margin expansion. On the other hand, while the Private Brands business showed sequential improvement, its results fell short of our expectations for the quarter."
For fiscal year 2016, TreeHouse Foods, Inc expects diluted earnings per share to be in the range of $1.95 to $2. The company expects diluted earnings per share to be in the range of $2.80 to $2.85 on adjusted basis.
For the fourth-quarter 2016, TreeHouse Foods, Inc expects diluted earnings per share to be in the range of $1.07 to $1.12. On an adjusted basis, the company expects diluted earnings per share to be in the range of $1.07 to $1.12.
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