The chief executive of Dean Foods, the largest dairy firm in the US, today (13 February) spoke of the “most challenging” year in the company’s history after seeing fourth-quarter profits tumble.
Go deeper with GlobalData
Gregg Engles said rising dairy commodity prices and a glut of organic milk had hit the business in 2007.
Dean Foods booked underlying fourth-quarter operating profits of US$149.2m, a fall of over 19% on the year.
Costs were the main factor in the fall in profits. Net sales during the last three months of the year rose 24.6% to $3.2bn.
Engles insisted Dean Foods had a bright future. “These near-term challenges did not slow our progress toward transforming the company into a stronger long-term competitor,” he said.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalData“In 2007, we laid much of the groundwork that we will build on as we transform the business to drive productivity and increase efficiency in the years to come.”
Fourth-quarter profits from both Dean Foods’ Dairy Group and WhiteWave Foods divisions slumped as costs continued to bite.
However, net sales from the WhiteWave Foods division rose 13% as Dean managed to pass on some of its higher commodity bill.
For the full year, Dean Foods saw underlying operating profit fall 12.7% to $589.7m. Revenue rose 17.1% to $11.8bn.
