Dean Foods is in the food and beverage industry. It operates through two segments, the Dairy Group and WhiteWave Foods. It sells products to grocery stores, club stores, natural foods stores, mass merchandisers, convenience stores, and foodservice outlets.
Dean Foods shares rise as Q1 profit up almost 50%
Food and beverage company Dean Foods (NYSE:DF) said Wednesday first-quarter net income nearly rose 50 percent, driven by stronger-than-expected growth across its operating segments.
The news sent the company’s share price up 12.11 percent reaching $14.26 each in trade on the New York Stock Exchange.
Net earnings jumped to $37.8 million, or 20 cents a share, on $3.21 billion in revenue for the first three months of the year.
This compared with a year-ago profit of $25.2 million, or 14 cents a share, on $3.04 billion in sales.
On an adjusted basis, the company earned 31 cents a share, topping Bloomberg analyst estimates for earnings of 21 cents, on $3.1 billion in revenue.
"Today we announced strong first quarter results, driven by stronger than forecasted growth across each of our three operating segments, and supported by tight expense control across the business," chief executive Gregg Engles said.
"As a result, consolidated adjusted operating income increased 42 percent above year ago levels," he added.
The WhiteWave-Alpro division hit an all-time record at $571 million in revenue, up 13 percent from a year-prior, the company said.
Revenue at its Morningstar unit rose five percent to $325 million, but volumes were essentially flat.
The maker of Horizon Organic dairy products, Silk soy milk and International Delight coffee creamers said its fresh dairy segment saw operating profit grow 18 percent to $101 million on cost reductions, pricing improvements and sales volumes.
Gross margins slipped to 24.5 percent from 24.6 percent a year earlier.
Looking ahead, the company now expects full-year adjusted per-share earnings of $1.10 to $1.20, up from its prior guidance of 87 to 95 cents per share. Analysts expect 93 cents a share in profit for the year.