Dean Foods Company’s (DF) management stated that they delivered a third consecutive quarter of year-over-year improvements to gross profit and operating income due to their volume performance coming in line with their expectations.
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Gregg Tanner, the chief executive officer of Dean Foods (DF), stated, “I’m very pleased with our third quarter results that demonstrate we are driving the right initiatives and agenda. We view our portfolio of brands, especially with our national brands of DairyPure in fresh white milk and TruMoo in flavored milk, as a competitive advantage that complements our customer set and leverages the national scale of our network and one of the nation’s largest best-in-class refrigerated direct store delivery distribution systems.”
He continued, “DairyPure has provided our sales organization with a strong selling story and value proposition to present to our customers while concurrently allowing us to effect the successful go-to-market strategy for our national brands this year.”
According to the management of Dean Foods, the company has important opportunities to build strong brands. Management also stated its intent to focus on cost structure and on growing its business. This included plans to extend its products to the lactose-free and nutrient-enriched categories.
The company’s peers in the industry include Hershey (HSY), Cal-Maine Foods (CALM), and Kellogg (K). Hershey reported YTD (year-to-date) returns of -17.4% while Cal-Maine and Kellogg reported positive YTD returns of 44.5% and 2.9%, respectively, as of November 10. The Wisdom Tree Dividend Ex-Financials Fund (DTN) invests 1.2% of its portfolio in Kellogg.