Quarterly sales, profits rise for dairy processors
Sales increase 10% for WhiteWave; Saputo reports 27.8% rise; Lifeway sees 15% increase
Sales increase 10% for WhiteWave
The WhiteWave Foods Co., Denver, (NYSE: WWAV) reported net sales for the third quarter ended Sept. 30 increased 10% to $639 million compared to the third quarter of 2012. This was due to continued volume growth across the company’s North America and Europe segments, WhiteWave said.
Adjusted operating income for the third quarter of 2013 totaled $54 million, representing an increase of 19% compared to $46 million in the third quarter of 2012.
The company’s North America segment is comprised of three platforms:
- Plant-based Foods and Beverages
- Premium Dairy
- Coffee Creamers and Beverages
Third quarter net sales for the North America segment were $534 million, an 8% increase over the 2012 period. The growth in the North America segment continues to be driven by category expansion, increased volumes, and new product innovations, the company said.
In the North America Plant-based Foods and Beverages platform, which includes Silk soy milk, almond milk and coconut milk, third quarter net sales increased 14%, primarily because of the growth of Silk almond milk which grew over 60% during the third quarter.
In Premium Dairy, which includes Horizon Organic branded dairy products, volume growth drove net sales to increase 3% in the third quarter of 2013 compared to the third quarter of 2012. Growth was driven by Horizon Organic brand half-gallon offerings. The growth rate in the quarter was negatively impacted by approximately 3 percentage points due to the Company’s decision to exit some private label manufacturing arrangements, and the discontinuation of a contract with a national coffee chain that is now focused on only offering its own brands within its stores.
In Coffee Creamers and Beverages, which includes coffee creamers under the International Delight and Land O Lakes brands, as well as International Delight Iced Coffee, net sales increased 9% in the third quarter of 2013 compared to the third quarter of 2012, due in part to strong growth in club stores, foodservice, convenience stores and other away-from-home channels.
The Company’s Europe segment is comprised of its European Plant-based Foods and Beverages platform, which operates primarily under the Alpro name. Net sales in the segment increased 19% in the third quarter of 2013 compared to the third quarter of 2012, on a reported basis; and increased 15% on a constant currency basis.
3-month sales for Saputo rose 27.8%
Saputo Inc., Montréal, Québec (TSX:SAP) said revenues for the three months ended Sept. 30 were Cdn$2.230 billion, an increase of 27.8%. The period is the company's second quarter of fiscal 2014. Net earnings increased 2.8% to Cdn $133.3 million.
Consolidated revenues for the quarter amounted to Cdn$2.230 billion, an increase of 27.8% compared to the corresponding quarter last fiscal year. This increase was mainly due to the inclusion of the revenues derived from the Morningstar acquisition, the company said.
Also, higher selling prices in relation to the higher cost of milk in both the Canada and International Sectors, as well as a better product mix in the Canada Sector, contributed to this increase. Lower cheese sales volumes in the USA Sector, as compared to the corresponding quarter last fiscal year, partially offset this increase.
The fluctuation of the Canadian dollar versus the US dollar and Argentinean peso increased revenues by approximately $10 million.
For the six-month period ended Sept. 30, revenues totalled $4.404 billion, an increase of 27.9% in comparison to the corresponding period last fiscal year. The inclusion of revenues derived from the Morningstar Acquisition principally contributed to this increase.
Lifeway Foods sees net sales increase 15%
Lifeway Foods, Inc., Morton Grove, Ill., (Nasdaq: LWAY), reported that gross sales for the third quarter ended Sept. 30 increased 18% to $26.6 million compared to $22.6 million for the third quarter of 2012. This increase is primarily attributable to increased sales and awareness of Kefir, ProBugs Organic Kefir for kids and BioKefir, the company said.
Total consolidated net sales increased 15% or $3.2 million to $23.8 million during the three-month period ended September 30, 2013 from $20.6 million during the same three-month period in 2012.
Gross profit for the third quarter of 2013 was $6.9 million, which was approximately the same in the third quarter of the prior year. Lifeway's gross profit margin was 29% in the third quarter of 2013 compared to 33% in the same period in 2012. Lifeway said this was primarily attributable to a 35% increase in the cost of milk, its largest raw material.
Year-to-date consolidated gross sales for the period ended Sept. 30 increased by $13.2 million, or approximately 20%, to $80 million. Total consolidated net sales increased by $10.7 million, or approximately 18%, to $71.3 million.