US dairy giant Dean Food raised its full-year outlook today (9 May) after it booked an increase in first-quarter profits driven by “solid” growth across all units and tight expense control.
In the three months to the end of March, net income increased 52% to US$37.9m, the company reported.
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First quarter operating income totalled $123m, a 16.1% increase on the prior-year period. Sales grew 6.7% to $3.2bn.
“Today we announced strong first quarter results, driven by stronger than forecasted growth across each of our three operating segments, and supported by tight expense control across the business,” said Gregg Engles, chairman and CEO.
“Our financial performance was further bolstered by declining interest expense, resulting in first quarter adjusted diluted earnings per share of $0.31, more than double the previous year and the sixth straight quarter we have delivered adjusted EPS at or above our guidance.”
Given the “significant momentum” that the company has built up in the first quarter, Dean Foods’ said the “cautious optimism” the company expressed last quarter has turned “less cautious”.
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By GlobalData“All three operating segments performed well in the first quarter and we expect strong full year growth across the business,” Engles added.
The company raised its full-year outlook and said that it expects full-year adjusted earnings of $1.10 to $1.20 per share, up from its prior outlook 0f 87 to 95 cents per share.
Click here to view the full earnings release.
