Shares of Dean Foods Co rose as much as 38 percent after the top U.S. dairy company posted a larger-than-expected quarterly profit as it was able to better manage milk supplies and announced an IPO for its health food business.
The company said on a conference call on Wednesday that it expects to continue to grow despite expectations for a rising dairy commodity environment.
Analysts at Bernstein Research led by Alexia Howard said Dean Foods was more successful at securing milk supply early in the year when a shortage arose.
"We also suspect that a mix shift into branded milk was a benefit to profit growth this quarter," analyst Howard wrote in a client note.
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