Dean Foods, the US dairy group, has reported lower sales and earnings for the third quarter of the year but stressed its adjusted performance improved year-on-year.

In three months to 30 September, net sales slipped to US$1.96bn compared to $2.03bn in the comparable period of last year. Milk volumes dropped 1%, although Dean Foods stressed the result represented the “strongest volume performance in at least four years”.

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The company also revealed operating profit in the three-month period was lower. EBIT declined to $42m compared to $50.5m. Net income dropped to $14.5m versus $20.23m in the third quarter of 2015. 

While earnings were lower, Dean Foods stressed that on an adjusted basis – stripping out one-time costs associated with restructuring, facility closures and its closing costs linked to its spin-off from WhiteWave Foods – its operating performance improved year-on-year with adjusted EBIT climbing to $69m versus $62m. 

“I am extremely pleased with our third-quarter results, which reflect the strongest volume performance we’ve seen in years, a disciplined go-to-market strategy and continued focus on reducing costs. Our entire organisation is focused on executing our strategic plan, and you see that in our results,” CEO Greg Tanner said. 

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“With improving volume performance, in addition to continued pricing and cost discipline, we expect the fourth quarter to be our eighth consecutive quarter of year-over-year adjusted operating income improvement.”

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Last month, The Financial Times reported Hangzhou Wahaha Group, the Chinese dairy-to-soft drinks company, was working on a bid for Dean Foods.

The FT, citing four unnamed sources, said on Friday (28 October) Hongsheng Beverage, a subsidiary of Wahaha, has contacted banks, including Goldman Sachs, as it prepares a move for Dean Foods.

Two of the sources said Hongsheng Beverage had also approached private-equity firms to partner the business on its offer.

When contacted by just-food last week, a spokesperson for Dean Foods said: “It’s our policy not to comment on rumours or market speculation.” Wahaha could not be contacted out of office hours.