Tag Archives: WBD

Emerging markets week in review

A mixed week for the BRIC left Russian and Indian stocks surging. Brazil gained ground as well, but China — considered a bellwether for the entire asset class — is now in correction territory.

BRICs

Wimm-Bill-Dann fares better than expected

Russian dairy giant Wimm-Bill-Dann held up relatively well through the summer grain crunch. If anything, consumer demand for milk and yogurt is getting better than ever.

WBD (quote) says it had trouble finding enough raw milk last quarter to keep its profit margins intact amid the worst drought in decades.

However, much of the bad news had already been baked into the stock.

In fact, WBD still reported a decent operating profit of $375 million over the first half of the year on revenue of $1.2 billion, which reveals a margin slightly (0.60%) better than analysts had expected.

And revenue surged 17% as Russian domestic demand for dairy products and baby food is, in the CEO’s words, “back to levels we have not seen since before the global economic crisis.”

This is a decent story that will get better. Meanwhile, it will be close to two years until an integrated Unimilk-Danone (DANOY, quote) becomes a real threat in the baby food arena.

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