The WhiteWave Foods Company (WWAV, Financial) is a consumer packaged food and beverage company that manufactures, markets, distributes, and sells branded plant-based foods and beverages, coffee creamers and beverages, premium dairy products and organic produce throughout North America and Europe. The company has been on a good run as the stock has moved over 55% in last 12 months. The stocks may look costly, it still warrants a buy as the company’s future look bright.
In Q1 FY15, WhiteWave Foods reported earnings per share of $0.22, in line with analyst estimate of $0.22. The company stated revenue of $911 million, miss by $0.1 million compared to consensus estimate of $911.1 million. Revenue was mainly driven by continued growth in company’s Americas and Europe foods and beverages segments.
On a constant currency basis, the company’s consolidated segment operating income growth was 19%. The company’s Americans food and beverages division operating income escalated 14% in the 1st quarter driven by double digit sales growth across all platforms.
Again, on a currency basis, the company’s total operating income raised 21% with 57 basis points of margin expansion after an upsurge in marketing that significantly outpaced their sales growth rate.
WhiteWave Foods expects annual interest expense to be $54 million to $57 million based upon expected debt levels and an updated forward outlook on rates.
Big Presence in the Market
WhiteWave has limited very robust brands in edict to take benefit of health trends nearby food, emphasis on health and weight, protein, local sourcing and waste management. With brands like Silk, Alpro, Horizon Organic, Earthbound Farm and International Delight the company grasps solid positions in significant markets.
Superior familiarity between households results in more frequent repeat purchases, purchases in other categories and approval of this new food category. United with the geographical attention on China in the upcoming years, the company has plenty of opportunities to carry on the sturdy organic growth.
Addition of Yulu
WhiteWave Foods, a leading customer packaged food and beverage company in North America, presented Yulu, a new Australian-style yogurt brand. Encouraged by a genuine Australian recipe, Yulu Double Smoothed is prepared with fresh ingredients to produce an extra creamy texture.
Yulu Aussie-style yogurt is a complete fat yogurt, prepared with real fruit and double-blended to craft a creamy, smooth taste. Each 5.3-ounce cup of Yulu yogurt is packed with nine grams of protein. Yulu is presently available in five varieties, including:
- Honey
- Strawberry
- Vanilla Bean
- Raspberry
- Blueberry
The first Aussie-style yogurt from WhiteWave Foods, Yulu come into the rising yogurt category as a good solution for customers who need a delicious and nutritious yogurt without the tangy, tart taste often allied with high-protein yogurts.
Conclusion
WhiteWave Foods share price growth is reflected in the company’s sales. The company has been steadily improving top-line while enhancing earnings as well. The company’s growth plans have secured benefits and I expect the company will continue on the long run. The company will benefit from the addition of Yulu brand. So, I think WhiteWave Foods is a good buy.
