After a disappointing 2018 for Dean Foods, it revealed last month that it was considering a sale. Investment management firm Bernstein has announced that it is “discontinuing coverage of Dean Foods (DF) due to the stock's diminished market cap and...
A disappointing fourth quarter for Dean Foods rounded out an under-performing 2018, causing the dairy giant to explore alternatives in its ‘business transformation.’ It is considering a joint venture, business combination or even a sale.
Dean Foods posted a loss of 28 cents per share, or $26.4m in its third quarter. It also closed and consolidated seven manufacturing facilities within six weeks, racking up ‘significant transitory costs’ that are expected to continue.
Dean Foods saw its gross profit drop 8% year-over-year to $1.8bn, driven primarily by a 6% decrease in reported volumes and higher mix of private label products, which the company intends to turn around with an enterprise-wide cost productivity program.
Dean Foods announced a minority investment and distribution deal with Good Karma Foods, adding resources to expansion plans of the latter, a small Colorado-based independent company that specializes in flaxseed beverages and yogurt.
Atlanta-based Hi-Tech Pharmaceuticals is taking over a former Dean Foods production facility in Belleville, Pennsylvania, and will make a multi-million investment to increase capacity and make improvements to the plant’s infrastructure.
Dean Foods saw an 0.8% decline in fluid milk volume sales during Q4 and a 2.1% decrease for the full-year 2016, mirroring a similar trend reported by the USDA, which showed a 1.25% decline in volumes of fluid milk during the fourth quarter of 2016.
Dean Foods has reported its first quarter 2016 results, ending March 31, 2016, with the takeover of Friendly’s ice cream business proving to be the center of attention at the company’s analysts conference call.