WhiteWave has disclosed acquisition in Mexico, finalised in June

WhiteWave has disclosed acquisition in Mexico, finalised in June

WhiteWave Foods, the US group set to be taken over by Danone, revealed a recent acquisition in Mexico as it published its half-year results yesterday (9 August).

The Alpro owner said it had snapped up Innovation Packaging and Process, a Mexico-based manufacturer of aseptic drinks, in June. WhiteWave said it paid US$18m in cash for a business that makes "a variety of products for WhiteWave and other parties".

The company added: "The acquisition supports WhiteWave's growth initiatives in Latin America with internal production capacity."

WhiteWave's results for the six months to 30 June included higher net sales, operating income and net income, as did the company's numbers for the second quarter.

However, WhiteWave disclosed second-quarter net sales from its fresh food arm - which consists of the Earthbound Farm produce brand - saw net sales decline 2%. WhiteWave said "tighter industry supplies of organic salad could not fully service demand". The company also pointed to its moves to rebuild its distribution following SAP implementation-related disruptions during the fourth quarter of 2015. WhiteWave forecast "strong" sales in the fourth quarter of this year will lead to the division generated higher net sales year-on-year in 2016.

First-half group net sales were up 13.9% at US$2.09bn. Operating income increased 25.6% to $184.7m. Net income rose by a third to $94.4m.

Reflecting on the second-quarter numbers, WhiteWave said its net sales "were driven by strong organic growth in both the Americas and Europe segments, as well as contributions from acquisitions".

"We are pleased with the double-digit topline growth, continued strong margin expansion and robust earnings growth we generated in the second quarter and for the first half of 2016," Gregg Engles, WhiteWave's chairman and CEO, said.

WhiteWave expects its $12.5bn sale to Danone, which was announced last month, to be completed by the end of the year. Of the takeover, Engles said yesterday: "This transaction represents an exciting next chapter of growth for WhiteWave as we bring together two companies with a shared mission of changing the way the world eats for the better."

Click here for our analysis of how Danone's planned takeover of WhiteWave will affect both companies.