RUSSIA: Wimm-Bill-Dann shares sour after profit warning

By: just-food.com | 25 January 2010

Shares in Russian dairy group Wimm-Bill-Dann fell today (25 January) after the company said milk shortages in the last quarter of 2009 would hit its full-year earnings.

Wimm-Bill-Dann shares were down by more than 4% in early trading on the New York Stock Exchange after issuing a surprise trading update on its projected annual profits.

An "acute shortage" of raw milk and "an unforseen shortage" of dry milk meant the company had to cut production late last year, which hit sales.

The shortage of raw milk supplies also pushed up prices and squeezed Wimm-Bill-Dann's dairy margins.

The company said it now sees full-year EBITDA to be in the range of US$300-310m, lower than market expectations, a spokesperson told just-food.

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