OAK BROOK, Ill., Aug. 6, 2015 /PRNewswire/ -- TreeHouse Foods, Inc. today reported second quarter earnings of$0.72 per fully diluted share compared to $0.57 per fully diluted share reported for the second quarter of last year. The Company reported adjusted earnings per share in the second quarter of $0.66 compared to $0.84 in the prior year, excluding the items described below.
Net sales for the second quarter totaled $759.2 million compared to $628.0 million last year, an increase of 20.9%, due to sales from acquisitions. Partially offsetting the increase in net sales was unfavorable volume/mix, foreign exchange and lower pricing. Compared to the second quarter of last year, sales in the second quarter of 2015 for the North American Retail Grocery segment increased 30.3%, sales for the Food Away From Home segment increased 0.6% and sales for the Industrial and Export segment decreased 4.4%.
Food Away From Home net sales for the second quarter of 2015 increased 0.6% to $97.8 million from $97.3 million during the same quarter of the previous year primarily due to volume/mix increases of 3.0%, partially offset by reduced pricing and the unfavorable impact of foreign exchange. The Company posted a volume/mix increase in the quarter as growth in the aseptic category was partially offset by a reduction in the other sauces and beverages categories (primarily single serve hot beverages). Direct operating income margin in the second quarter increased to 14.9% in 2015 from 12.4% in 2014 due to more efficient plant operations in the second quarter of 2015 versus 2014 and favorable input costs. During the second quarter of 2014, plant operations were recovering from a temporary labor shortage that lowered margins. Partially offsetting the increase in margins was higher cost of sales of U.S. sourced raw materials for the Canadian operations and reduced year-over-year pricing.
"Challenges in the single serve beverages market have escalated, driven by aggressive private label pricing that resulted in coffee margin deterioration of roughly 20 percentage points year-over-year in the second quarter. We had not expected this level of competitive pressure, most of which is being driven by the brand leader. Despite the price competition, we have made progress in expanding distribution that will manifest in 2016 as our customers see that we are committed to customer brands and custom products," said Sam K. Reed, Chairman, President and Chief Executive Officer.
