RUSSIA: Margin slip sours Wimm-Bill-Dann Q1 profits rise
Wimm-Bill-Dann "gaining share" in dairy, baby food and beverages
Russian drinks and dairy group Wimm-Bill-Dann Foods has reported a jump in first quarter net profits, but raw milk costs soured margins.
Wimm-Bill-Dann reported net profits of US$33.7m for the three months to the end of March, up from $12.6m in the same period a year earlier, when the company notched up $33.7m in finance costs.
Sales rose 19.1% to $615.3m thanks to volume growth "across dairy, beverages and baby food", as well as a boost from foreign exchange.
However, "sharp increases" in raw milk costs weighed on margins. Gross margin fell from 32.5% a year ago to 28%.
"The disruption in the supply of raw milk we saw in the fourth quarter of last year continued into the first quarter, impacting our profitability in the dairy segment in the short-term but the fundamentals of this market are solid nonetheless," said CEO Tony Maher.
He added that Wimm-Bill-Dann was gaining ground in its three main categories.
"We are not just benefiting from demand recovery, we are gaining market share in all three segments outperforming the market."
- Review of the Year 2014 - Part IV: Spirits
- Cuba-US Normalisation: Bacardi, Pernod Winners?
- Review of the Year 2014 - Part V: Wine
- just Five Years Ago - Belvedere Group's Bumpy Ride
- just the Ten - Editor's Viewpoints of 2014
- Belvédère to sell assets, streamline portfolio
- Campari to bag EUR19m with "non-core" assets sale
- Pernod agrees Caribe Cooler sale to Grupo Bepensa
- Pernod wins consent for Glenlivet upgrade
- Thailand pulls back from New Year alcohol ban