Dean Foods has posted a 43% fall in first-quarter profits, as costs linked to acquisitions made last year and to restructuring throughout the business hit the US dairy group’s bottom line.
The company, which announced a further round of job cuts today (10 May), booked net income of US$43.1m for the three months to 31 March – compared to $76.2m a year earlier.
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Operating income fell from $192.8m last year to $119.1m in the first quarter of the current fiscal year.
Adjusted operating costs rose $74m in the quarter due to acquisitions made year, including the purchase of Alpro, and “transformation initiative support” expenses.
Net sales were up almost 10% to $2.97bn thanks to Dean Foods’ ability to pass through higher commodity costs and to “solid” growth from the “value-added brands” within its WhiteWave-Alpro division.
Click here for the first-quarter earnings statement from Dean Foods. Check back later for coverage of the company’s conference call with analysts.
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