US dairy giant Dean Foods has reported higher quarterly earnings as sales were boosted by acquisitions and higher selling prices.
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The company reported net income of US$98.9m, or 64 cents per share, for the fourth quarter to 31 December, compared to $86.5m, or 54 cents per share, in the year-ago period. Net sales were $2.8bn, up 11% due to the acquisitions of Horizon Organic and Ross-Swiss Dairies, the increased selling prices as the company passed on increases in raw milk and butterfat costs, and continued strong volume growth at the company’s dairy group and White Wave Foods.
“We are encouraged by our performance in the fourth quarter,” said Gregg Engles, chairman and chief executive officer. “We delivered 14% adjusted earnings per share growth for the quarter and enter 2005 with significant momentum. Our consolidated branded products group, which we have renamed White Wave Foods, continued to see robust growth in our most important brands,” he added.
In addition, the company’s dairy group continued to expand its market presence, posting 2.7% volume growth for fresh fluid milk and cream in the quarter.
“We believe these results, combined with the ongoing consolidation of White Wave Foods and the planned spin-off of our specialty businesses, position us to create significant shareholder value in the coming year,” Engles said.
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