Solid Start to the Year by Dairy Crest
Dairy Crest has reported that it has started the year well and trading in the first quarter has been in line with expectations, as the UK dairy group continues to make good progress with its strategy to grow added value sales and reduce costs and borrowings.
The strategy of investing in its five key brands (Cathedral City, Country Life, Clover, Frijj and St Hubert Omega 3) is delivering growth and sales of these brands have increased by 3% compared to the same period last year. This builds on the strong growth that these brands have achieved over the last three years.
Dairy Crest has also reported continued good progress with sales of liquid milk to its major retail customers. Cost reduction projects are going to plan and the recently announced investment in the liquid milk dairies is on track to improve efficiencies and provide additional capacity.
Mark Allen, chief executive of Dairy Crest.
Dairy Crest is also maintaining good progress in managing its cashflow and expects this to deliver a meaningful reduction in year-end debt. The cash proceeds of Eur9m, resulting from the recent reduction in Dairy Crest’s stake in Wexford Creamery to 30%, have been used to repay debt.
“Dairy Crest continues to benefit from being a broadly based business. At the start of the year we set out our objective to increase profits, generate cash and further reduce our borrowings and our performance in the first quarter is in line with our expectations,” says Mark Allen, chief executive of Dairy Crest. “We remain well placed to deliver over the rest of the year.”
The group expects to issue its half-year trading update on 30th September 2010 and its interim results for the six months ending 30th September 2010 on 11th November 2010.
