FDBusiness.com

Dairy Crest Delivers on Key Objectives

 Breaking News
  • Orkla Moves into New HQ Orkla, the Nordic region’s largest branded consumer goods company, has moved into new headquarters in Oslo, Norway. The move marks a new era in the company’s history, with Orkla’s businesses in Norway now assembled under one roof. More than 900 Orkla employees are based in the new office premises. “The building we are now moving into is [...]...
  • New Heads For Carlsberg Group’s European Businesses Lars Lehmann has been appointed as Executive Vice President (EVP) for Carlsberg Group’s Eastern European region and as a member of the global brewer’s Executive Committee (ExCom). He will replace Jacek Pastuszka, who will change from EVP Eastern Europe to Western Europe, while current Western Europe EVP Chris Warmoth reverts to Group Strategy as EVP. Effective [...]...
  • Rising Prices Drive Irish Grocery Sales Growth The latest figures from Kantar Worldpanel show the Irish grocery market grew by 3.5% in the 12 weeks to 24 February 2019, putting the sector on a solid footing as the UK finalises preparations to leave the EU. After a prolonged period of deflation, an upward trajectory in grocery prices is making a significant contribution [...]...
  • New EU Rules to Ensure Fairness in the Food Supply Chain The European Parliament has approved a new set of EU rules that will blacklist practices, such as late payments for delivered products, late unilateral cancellations or retroactive order changes, refusal by the buyer to sign a written contract with a supplier and the misuse of confidential information. Threats of retaliation against suppliers, for instance delisting [...]...
  • Mondelēz International Invests in Prebiotic Functional Snacks Mondelēz International has taken a minority investment in Uplift Food, a US-based early-stage start-up focusing on prebiotic functional foods. This is the first venture investment the company is making as part of SnackFutures, the company’s innovation and venture hub aimed at unlocking snacking growth opportunities around the world. A key pillar of the company’s consumer-centric growth [...]...

Dairy Crest Delivers on Key Objectives

June 09
14:44 2010

Dairy Crest is continuing to reap the benefits of its development strategy of brand investment, cost reduction and cash generation.

Dairy Crest has reported a slight decline in revenue from £1.648 billion to £1.63 billion for the year ended March 31st 2010, as strong sales growth of key brands and liquid milk to retailers, which together increased by £52 million, was offset by planned lower sales of dairy ingredients and lower sales to doorstep and middle ground milk customers. Adjusted profit before tax at the UK-based dairy group rose 5% to £83.5 million.

After adjusting for exceptional items and amortisation reported profit before tax was down 25% at £77.8 million, which was chiefly due to the £50.4 million exceptional gain on the sale of Dairy Crest’s stake in joint venture Yoplait Dairy Crest in the previous year.

During the year, Dairy Crest was able to successfully progress its development strategy of continuing to build market-leading positions in branded and added value markets; of focusing on cost reduction and efficiency improvements; and driving cash generation in order to reduce debt. Sales of key brands increased by 9% and sales of milk to major retailers were up 8%. Dairy Crest has introduced new initiatives to generate £20 million in annualised cost reductions. Net debt was reduced by £78.6 million or 19% to £337.2 million by the year end, which was better than expected.

Investing For Future Growth

Mark Allen, chief executive of Dairy Crest.

Dairy Crest is continuing to invest for the future. Increased marketing investment has strengthened key brands for further growth and the group has embarked on a major capital investment programme at its dairies division in order to improve the efficiency and infrastructure of its liquid milk operations. Dairy Crest will spend £75 million over the next three financial years in addition to its normal replacement capital expenditure, to be funded from cash generated by the business.

“The increased investment in our liquid milk dairies will allow us to drive further cost efficiencies, remain competitive and maintain high levels of service to our customers,” says Mark Allen, chief executive of Dairy Crest.

Investment until now had been focused on the cheese business, where following the opening of the new Nuneaton packing plant, Dairy Crest has a world-class supply chain supporting its Cathedral City brand. Dairy Crest has also continued to invest in other parts of the business; for example, at Foston where a modern greenfield dairy has been created, readily capable of further expansion.

Development Strategy

“We have consistently delivered on our strategy of brand investment, cost reduction and cash generation, and have strengthened the business for the future. During the year, we have increased operating profits and significantly cut our borrowings, and at the same time we have continued to develop our key brands and other added value sales,” remarks Mark Allen. “Dairy Crest has changed from the predominantly commodity focused, UK based business that it was fifteen years ago to an added value dairy food company with a significant profit stream from continental Europe. We have shown that we can grow added value sales both organically and through acquisitions and we are well placed to continue this.”

About Author

colin

colin

Related Articles



Food & Drink Business Conference & Exhibition 2016

Upcoming Events

  • June 18, 2019Multimodal 2019
AEC v1.0.4

find food jobs

The Magazine

F&D Business Preferred Suppliers

New Subscriber

Subscribe Here



Advertisements