FDBusiness.com

Although turnover slipped by 2% to £1.61b for year ended March 31st 2011, Dairy Crest managed to increase adjusted profit before tax by 5% to £87.6m in challenging trading conditions. Profit before tax remained static at £77.8m.

In line with its development strategy, the UK dairy group again increased added value sales and its five key brands all performed well. The dairy group also grew sales of milk to major retailers during the year and started to supply liquid milk to Tesco.

Dairy Crest delivered £20m of annualised cost reduction initiatives during the year and has identified a further £20m for 2011/12.

“Dairy Crest’s results for the year demonstrate the benefit of being a broadly based business. A strong performance from our branded spreads and cheese businesses has more than offset tougher trading in dairies,” remarks Mark Allen (pictured), chief executive of Dairy Crest. “We have also been successful in making cost savings across the business to reduce the effect that commodity inflation is having on our customers and consumers, and have lowered net debt again this year.”

He adds: “Against a background of higher input costs and increasingly cash-constrained consumers we will continue to focus on doing the right things for long-term benefit, including making efficiency improvements and investing in the long-term health of our brands and facilities. We are soundly positioned to deal with the challenges ahead.”