The company said on a conference call on Wednesday that it expects to continue to grow despite expectations for a rising dairy commodity environment,cheap oakley sunglasses.
Analysts at Bernstein Research led by Alexia Howard said Dean Foods was more successful at securing milk supply early in the year when a shortage arose,fake oakleys.
“We also suspect that a mix shift into branded milk was a benefit to profit growth this quarter,cheap oakley sunglasses,” analyst Howard wrote in a client note.
Bernstein analysts also said Dean Foods is less exposed to the supermarket channel and more exposed to faster-growing outlets like club and dollar stores and other non-grocery channels,cheap oakley sunglasses.
Dean Foods on Tuesday said it would sell 20 percent of WhiteWave Foods Co,cheap oakley sunglasses, which consists of Dean Foods’ White Wave-Al pro segment and which also sells International Delight coffee creamer products,cheap oakley sunglasses, in the initial public offering.
“This was earlier than we had expected, and was presumably enabled by the strong free cash flow and leverage reduction seen this quarter,” Howard said.
Dean Foods plans to pay down its debt with proceeds from the offering,fake oakleys, as well as $800 million to $925 million to be borrowed under a new credit facility at WhiteWave Foods.
The company’s shares were trading up 36 percent at $16.89 on Wednesday on the New York Stock Exchange,cheap oakley sunglasses, making them the top percentage gainer on the Exchange. They touched a high of $17.10 earlier.
(Reporting by Arpita Mukherjee in Bangalore; Editing by Sriraj Kalluvila)