Dreyer’s Reports Wider Loss

Dreyer’s Grand Ice Cream Holdings Inc. posted a wider second-quarter loss Friday, primarily because of higher interest expenses and royalty payments to affiliates.

The Oakland-based company reported a loss for the quarter that ended June 25 of $26.2 million, or $1.04 a share, compared with a loss of $24.3 million, or 94 cents, a year earlier.

Dreyer’s, which makes nearly a quarter of the packaged ice cream sold nationally, had revenue for the quarter of $467.6 million, up 9% from $429.8 million a year earlier.

But the company’s interest expenses almost doubled to $4.3 million, primarily because of borrowing funds for the $100 million it invested to expand its Bakersfield plant and the $180 million it spent to modernize a plant in Laurel, Md.

Also, royalty expenses paid to brands and technology licensed to Dreyer’s rose 23% to $9.5 million.

The company is 67% owned by Swiss food giant Nestle, which is slated to begin buying the rest of the outstanding shares in December.

Last year Dreyer’s sold more than 152 million gallons of ice cream under the Dreyer’s, Edy’s, Haagen-Dazs, Nestle, Starbucks and Skinny Cow brands.

Dreyer’s shares rose 8 cents Friday to $81.67.