TreeHouse Foods Recalls More L.mono Contaminated Items

TreeHouse Foods Inc. (NYSE:THS) announced is recalling some additional products which contain sunflower seeds feared to be contaminated with Listeria monocytogenes (L.mono).

On May 3, 2016, TreeHouse Foods had announced the recall of products which are expected to be impacted by the L mono germ. A supplier SunOpta Inc. (NASDAQ:STKL) had notified TreeHouse of the possibility of contamination of the products. The products had been distributed nationwide at retail stores. The bacteria are known to cause serious and at times serious infections in young children, weak or elderly people. It also causes harm to people with weakened immune systems. However, till date no illness was reported from the products that were distributed by the company.

L.mono can also cause miscarriages and stillbirths among pregnant women. However, healthy individuals may suffer only short-term symptoms such as high fever, severe headache, stiffness, nausea, abdominal pain and diarrhea. Consumers who have purchased the products can ask for a full refundIf they return the product at the place of purchase.

The voluntary recall is expected to affect revenues for the company. TreeHouse Foods reported better-than-expected first-quarter 2016 results in May 2016. However, it has tightened its earnings view for 2016 owing to a lower margin structure of the acquired business of Private Brands.

TreeHouse has issued a dismal outlook for 2016. For 2016, the company anticipates the overall food industry to face weakness which will likely affect the revenues as well. TreeHouse Foods plans to focus on integrating its recently closed acquisition of the Private Brands Business.

Further, the company expects second-quarter earnings to be weak due to the duplicative costs resulting from the Private Brands acquisition and its lower margin structure.

TreeHouse Foods has a Zacks Rank #3 (Hold).

Better-ranked food companies in the industry include Omega Protein Corporation (NYSE:OME) , Post Holdings, Inc. (NYSE:POST) . Both these stocks sport a Zacks Rank #1 (Strong Buy).