- 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."
Click here for the full statement.
