- Q1 net loss of US$74m
- Stripping out charges, net income of $22m
- Net sales down 12%
Shares in Dean Foods jumped today (11 May) despite a reported first-quarter loss as the US milk supplier's underlying earnings beat analyst forecasts.
Dean Foods booked a net loss of US$74m for the three months to 31 March, deeper than the $9m loss it generated a year earlier.
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However, the company's bottom line was affected by costs including a $109.9m impairment charge as part of its launch of national milk brand DairyPure.
The group's adjusted net income was $22.3m, or $0.24 a share. Sanford Bernstein analyst Alexia Howard said Wall Street had forecast earnings of $0.18.
Dean Foods posted an operating loss of $59m, compared to profit of $5m a year ago. Adjusted for charges, the company made operating income of $51.6m.
The company's underlying profitability was helped by falling raw milk prices and "significant price realisation" on its own selling prices.
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By GlobalDataThe decision to hold prices meant net sales were down 12.4% at $2.05bn. Volumes fell 3% year-on-year, which Dean Foods said was in-line with its expectations.
CEO Gregg Tanner said: "This past quarter, we continued to deliver sequential improvements to our operational and financial results, and we recapitalised our balance sheet to provide the organisation with significant flexibility going forward."
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