Dean Foods lifted its second-quarter profit forecast today (25 June) on the back of lower production costs and higher milk prices.
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Dean predicted profits in excess of US$0.32 per share, excluding charges associated with restructuring costs.
The US dairy giant has struggled over the past year with rising energy costs and an oversupply of organic milk.
The company said the performance of its DSD Dairy unit, which sells milk, ice cream and juices, had beaten expectations.
“Our DSD Dairy business is performing particularly well in the second quarter,” said Gregg Engles, chairman and CEO.
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By GlobalData“Our team’s efforts to reduce the cost of production and distribution, combined with effective management of the pass-through of increased dairy commodity and energy costs through this inflationary period, is resulting in a strong overall performance in the second quarter.”
Dean reiterated its full-year guidance of EPS of $1.20 per share.
The company is due to report its second-quarter results on 6 August.
