Dreyer’s Posts First Profit in 3 Years
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Dreyer’s Grand Ice Cream Holdings Inc., which controls about a quarter of the U.S. ice cream market, reported its first profitable quarter in three years after sales of Haagen-Dazs, Dreyer’s and Edy’s products rose.
Net income in the third quarter was $859,000, contrasted with a net loss of $10.5 million a year earlier, Oakland-based Dreyer’s said Monday. Revenue rose 10% to $520.3 million from $473.7 million.
Dreyer’s benefited from lower milk and cream costs during the quarter. The company said the cost of cream fell by $4.9 million. Prices of milk traded on the Chicago Mercantile Exchange have fallen about 9.4% in the last year.
Before the recent quarter, Dreyer’s had 12 consecutive quarterly losses since the second quarter of 2002, as the company was unable to raise ice cream prices enough to cover higher dairy costs.
Shares of Dreyer’s Grand Ice Cream Holdings rose 6 cents to $82.46.
Nestle, the world’s largest food company, purchased about 68% of Dreyer’s in 2003.
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