Nestlé CFO Wolfgang Reichenberger still expects to close the company’s acquisition of Dreyer’s Grand Ice Cream in June this year.
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According to a report by Reuters, the deal has been held back by competition difficulties.
Dreyer’s today [Wednesday] reported a drop in first quarter profit as it struggled with significant costs incurred in relation to the takeover by Nestlé and the bankruptcy of US grocer Fleming. The company, based in Oakland, California, posted a quarterly profit of US$871,000, or 2 cents a share, compared with $1.3m, or 4 cents a share a year earlier.
Dreyer’s said it incurred $4.5m of merger transaction expenses during the first quarter, and it anticipates a total expense tag for the transaction to be about $34m.
Nestlé earlier reported a 7.5% drop fall in sales to SFr19.71bn ($14.3bn), below expectations. Core growth – which strips out the effects of acquisitions, price changes, and currency effects – was just 2.5%.
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