WhiteWave Foods has already committed to be acquired by Danone, but investors may be eyeing its third-quarter earnings report released Wednesday as the stock still actively traded.
The parent of Silk soy milk and other alternative foods has ridden a wave of healthy eating to solid growth, but during the recent period, performance was stunted by troubles by problems in its Fresh Foods division.
What happened with WhiteWave this quarter:
- Growth slowed significantly because of trouble with its fresh-produce brand, Earthbound Farm, whose revenue declined 13% because of supply chain-related constraints and other issues.
- As a result, organic constant currency net sales growth was just 2% in the quarter. The quarter’s results includes the addition of Wallaby yogurt and Vega plant-based nutrition products, both of whose acquisitions were completed last August.
- Without the problems at Earthbound Farm, organic constant currency growth would have been 5%, and total revenue growth 8%.
- The results marked the company’s slowest revenue growth in its history as a publicly traded company.
- Its China joint venture continues to be a headwind, contributing a $3 million net loss.