Dean Foods has posted a jump in fourth-quarter profits despite falling sales as the US dairy group benefited from declining energy and commodity prices.
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The largest dairy processor and distributor in the US said today (11 February) that net income more than doubled in the fourth quarter of 2008 to US$66.4m, up from $32.6m a year earlier
The company’s profits were boosted by a decline in commodity prices and energy costs, Dean Foods said.
“Commodities continued to be favourable in the fourth quarter, particularly energy related commodities, which, combined with operational improvements across the business, bolstered our financial results in the period,” Gregg Engles, chairman and CEO, said.
During the period, gross margin increased to 25.5% from 21.8%. However, fourth-quarter sales slipped 4.7% to $3.08bn.
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By GlobalDataFourth-quarter gains lifted Dean Foods’ net income to $184.8m for the year ended 31 December, up from $130.5m in the previous year
Full-year sales at the WhiteWave-Morningstar segment, which includes ice cream and yoghurt as well as organic products, rose 10%, to $2.65bn, while earnings remained steady at $205.4m.
The DSD Dairy segment, which primarily consists of Dean Foods’ conventional dairy operations, saw a 1.5% lift in full-year milk volume, while profits increased 10% to $591.3m.
