Wimm-Bill-Dann "gaining share" in dairy, baby food and beverages

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."