WhiteWave Foods, the US group behind brands including Silk and Alpro, today (9 November) raised its profit forecasts after a third quarter of higher sales and earnings.
The company estimates its adjusted diluted earnings per share will hit $1.17 to $1.18 in 2015, up from its previous $1.14-1.17 forecast.
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WhiteWave's management expects adjusted operating income will grow at a percentage rate "in the mid- to high twenties" on a constant-currency basis. Based on current foreign exchange rates, WhiteWave predicts a rate of percentage growth in the "low- to mid-twenties".
In August, WhiteWave forecast constant-currency adjusted operating income would increase at a rate in the mid-twenties and in the low twenties growth on foreign exchange rates.
In WhiteWave's third quarterm which ran until 30 September, the company generated net income of $50m, up from $40.9m a year earlier.
Operating income stood at $93.1m, versus $73.3m in the third quarter of 2014. Adjusted operating income, which stripped out items including acquisition-related transaction and integration costs, as well as the elimination of a gain linked to an asset disposal, rose 25%, reflecting what WhiteWave called "continued operating margin expansion".
Net sales increased 17% to $1bn; on an adjusted, constant-currency basis, net sales were up 20%.
WhiteWave did see its adjusted operating income from its Americas fresh foods division, which comprises the Earthbound Farms business, fall 12% in the quarter. The company pointed to higher farming costs as it upped crop inventories "to ensure higher customer service levels".
Shares in WhiteWave were up 4.58% at $43.35 at 14:52. The company's stock has risen 23.78% so far this year.
