US dairy giant Dean Foods raised its full-year earnings outlook after booking better than expected third-quarter profits.
Dean Foods said third-quarter net income rose to US$36.4m, up from a loss of $1.5bn last year when the company booked a $1.9bn goodwill impairment charge. Adjusted earnings were up 83%, Dean Foods said. Profits were up across all its businesses.
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Sales fell 8% to $3.14bn, despite a 13% increase in WhiteWave-Alpro revenues. The pass-through of lower commodity costs at Dean Foods’ Fresh Dairy Direct and Morningstar units hit revenues.
Nevertheless, Dean Foods upped its full-year adjusted EPS outlook to $1.27-1.32, from a previous range of $1.18-1.28.
Dean Foods is undergoing a period of change. Last month, it spun off part of its WhiteWave business last month and it is also considering selling its Morningstar unit.
It confirmed the sale process for Morningstar is “ongoing” and insisted an announcement would be made if a deal is reached. If the company does proceed with the sale, it said the move would further deleverage the group and provide future financial flexibility.
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By GlobalDataThe company, meanwhile, revealed CFO Shaun Mara will leave the company after the end of the year to “pursue other opportunities”. General counsel Steve Kemps will also exit the company.
The latest management changes follow the departure last month of chief executive Gregg Engles, who left Dean Foods to head up WhiteWave. Gregg Tanner, former Fresh Dairy Direct chief, took the helm as Dean Foods CEO.
Chris Bellairs, currently fresh dairy CFO, will take over as group CFO.
