WhiteWave Foods Q2 Profit Up 18%; Lifts Low End Of Full-year Earnings Outlook

(RTTNews) - Consumer packaged food and beverage company WhiteWave Foods Co. (WWAV) on Friday reported an 18 percent increase in profit for the second quarter from last year, helped primarily by volume growth across its North America and Europe segments.

Looking ahead, the Dallas, Texas-based company forecast earnings for the third quarter below analysts' expectations, but raised the lower end of its adjusted earnings outlook for fiscal 2013.

WhiteWave Foods makes plant-based foods and beverages, coffee creamers and beverages, and dairy products. The company's spin off from dairy company Dean Foods Co. (DF) was completed in May 2013.

Kelly Haecker, Executive Vice President and Chief Financial Officer of WhiteWave Foods said, "We are pleased with the strong second quarter results we achieved despite ongoing higher supply chain costs largely attributable to our current capacity constraints. We are making steady progress on the capacity expansion plans we previously communicated in order to lower these costs over time."

WhiteWave Foods' North America segment is comprised of its Plant-based Foods and Beverages, Premium Dairy, and Coffee Creamers and Beverages platforms. The Europe segment is comprised of the company's European Plant-based Foods and Beverages platform, which operates primarily under the Alpro name.

North America segment sales for the second quarter grew 10 percent from the year-ago period to $514 million, led by strong double-digit growth in both Plant-Based Foods and Beverages, and Coffee Creamers and Beverages. Europe segment sales for the quarter rose 13 percent to $102 million.

WhiteWave Foods' net income for the second quarter rose to $31.21 million from $26.38 million in the year-ago period. On a per share basis, earnings were flat with the prior-year period at $0.18.

Adjusted net income for the quarter was $28.50 million or $0.16 per share, compared to $22.18 million or $0.13 per share in the same period last year. On average, eleven analysts polled by Thomson Reuters expected the company to earn $0.16 per share for the quarter. Analysts' estimates typically exclude special items.

Net sales for the quarter rose 11 percent to $615.99 million from $554.45 million in the year-ago period. Net sales increased 10 percent from adjusted net sales of $558 million in the prior-year period. Analysts had a consensus revenue estimate of $605.25 million.

Looking ahead to the third quarter, WhiteWave Foods forecasts adjusted earnings in a range of $0.17 to $0.18 per share. The company expects core growth of its leading brands, along with recent innovations, to continue to drive sales growth rate in the high-single digits for the quarter.

Street expects the company to earn $0.19 per share for the quarter on revenues of $634.03 million.

For fiscal 2013, WhiteWave Foods raised the lower end of its earnings guidance range. The company now anticipates adjusted earnings for the year of $0.69 to $0.72 per share, compared to the prior range of $0.68 to $0.72 per share. Consistent with previous guidance, the company expects a high single-digit growth rate for full-year revenue.

Analysts expect the company to report earnings of $0.71 per share for the year on revenues of $2.51 billion.

In Friday's regular trading session, WWAV is trading at $18.78, down $0.09 or 0.50 percent on a volume of 30,662 shares.