FDBusiness.com

Dairy Crest Looks Forward to Long-term Profitable and Sustainable Growth

 Breaking News
  • Royal A-Ware and Glanbia Ireland to Build New €140 Million Continental Cheese Facility Royal A-ware, a leading global cheese and dairy producer in The Netherlands, and Glanbia Ireland, Ireland’s largest dairy processor, plan to enter a strategic partnership that proposes to build a new continental cheese manufacturing facility in Belview, County Kilkenny, Ireland. It is proposed that a total of €140 million will be invested in this best-in-class [...]...
  • Pladis Appoints Global CEO Pladis, one of the world’s leading snacking companies, has appointed A Salman Amin as global CEO. He will take over the leadership officially in February. With a strong reputation in the food and drink sector, Salman Amin takes up the role after a highly successful international career spanning 30 years and three continents. Most recently, he [...]...
  • ADM Adds New Line of Specialty Tapioca Starches For the EMEA Region Archer Daniels Midland Company has announced a long term partnership with General Starch Limited (GSL), a leading tapioca starch producer located in Thailand. ADM will have exclusive distribution rights of the GSL modified tapioca starch products in the majority of the European countries, as well as in the Middle East and Africa. This range of [...]...
  • Louis Dreyfus Company to Exit Dairy Louis Dreyfus Company, a leading international merchant and processor of agricultural goods, has announced its decision to exit its dairy business by mid-2019. The move is in line with the company’s strategy over the past three years to exit non-core areas and refocus on its core businesses, including investments in origination markets and expansion along [...]...
  • Lucozade Ribena Suntory to Invest £13 Million in UK Factory Japan-based Suntory Beverage & Food is investing £13 million in its UK-based subsidiary Lucozade Ribena Suntory to install a new, high-speed bottle filler at its factory in Coleford, Gloucestershire. The new filler will produce 1.3 million bottles a day and will be instrumental in increasing productivity and efficiency at the Lucozade Ribena Suntory factory. The investment [...]...

Dairy Crest Looks Forward to Long-term Profitable and Sustainable Growth

Dairy Crest Looks Forward to Long-term Profitable and Sustainable Growth
November 06
15:05 2015

UK dairy group Dairy Crest has reported a 5% drop in first half revenue to £203.8 million with adjusted profit before tax from continuing operations down 38% to £16.0 million. In November 2014, Dairy Crest agreed to sell its Dairies operations to Muller UK & Ireland Group and this deal is now due to complete on 26 December 2015. Dairy Crest expects proceeds from the disposal to be in the range of £40–50 million subject to working capital adjustments. The additional amount due from selling properties not included in the sale to Müller remains unchanged at £20 million. The disposal will leave Dairy Crest focused on its Spreads, Butters, Cheese and Whey activities.

The decline in Dairy Crest’s revenue during the first half reflects lower selling prices across the business and reduced Spreads and Butters product group volumes. Total product group profit from continuing operations fell 32% to £20.0 million. Cheese and Whey product group profits fell by £7.7 million reflecting lower cheese realisations in advance of reduced cheese costs and lower whey realisations. Spreads and Butters product group profits were also down due to lower volumes, although margins were broadly maintained at 14.9% (2014: 15.5%).

Mark Allen, chief executive of Dairy Crest, comments: “The sale of our Dairies operations leaves Dairy Crest well positioned for long-term profitable and sustainable growth alongside strong cash generation. We expect this to start in the second half of 2015/16 despite the continuing challenging environment.”

He adds: “Following the sale of our Dairies business, Dairy Crest will be a predominantly branded, simpler, more focused business with a significantly reduced overhead base. Future sales of ingredients for infant formula, which will start in the second half, will provide added impetus. We expect the increased focus on growth and cash generation to allow us to maintain our strong track record of rewarding shareholders with higher dividends.”

About Author

mike

mike

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