Dean Foods Revenue Declines Continue Amid Falling Volume
August 08 2016 - 9:30AM
Dow Jones News
Dean Foods Co. said revenue slid in its latest quarter, hurt by
declining volumes, though profit was again buoyed by lower milk
prices.
Shares of the company tumbled 4.3% premarket to $18.01. It is
the sixth straight quarter of declining sales for Dean, according
to FactSet data.
Dallas-based Dean Foods has been aiming to shift more of its
business toward branded milk and ice cream products that command
higher profits, at a time when alternatives like almond and soy
milk have cut into sales of traditional cow's milk.
Lower raw milk prices have helped the company's results in
recent quarters, working to offset declining volumes. During the
June quarter, raw milk costs fell 7% from the same quarter a year
ago. Overall volume declined 3.2% and the company lost market
share.
In all for the quarter, Dean Foods reported a profit of $33.4
million, or 36 cents a share, up from $26.5 million, or 28 cents a
share, a year earlier.
Excluding certain items, adjusted earnings rose to 38 cents a
share from 33 cents a share. The company had guided for adjusted
earnings per share between 32 cents and 40 cents. Revenue slipped
8.2% to $1.85 billion, in line with analyst estimates.
For the current quarter, the company guided for earnings of 32
cents to 40 cents a share, straddling analysts estimates for 37
cents, according to Thomson Reuters.
Write to Anne Steele at Anne.Steele@wsj.com
(END) Dow Jones Newswires
August 08, 2016 09:15 ET (13:15 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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