Solid First Half by Dairy Crest
Dairy Crest has performed solidly during the first six months of the year, benefiting from being a broadly based dairy business with strong brands. Adjusted profit before tax (before exceptional items, amortisation of acquired intangibles and pension interest) was up 5% to £40.1m on the comparable period in the previous year. Reported profit before tax advanced 6% to £36.1m.
Mark Allen, chief executive of Dairy Crest.
Half-year revenue at the UK dairy group slipped 3% to £776.9m. Increased sales of its five key brands and of milk to major retailers were offset by lower sales of doorstep and middle ground milk and lower revenues following the sale of a controlling interest in Wexford Creamery.
“Dairy Crest has enjoyed another good six months. In line with our strategy, we have continued to grow our brands, reduce our costs and control our debt. At the same time the improvements we have made to our quality, service and cost base have paid off with new contracts to supply fresh milk to major retailers,” says Mark Allen, chief executive of Dairy Crest. “With operational efficiencies and selling price increases in certain categories limiting the impact of higher input costs, we are confident that we can continue to deliver profits in line with our expectations.”
