FDBusiness.com

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

 Breaking News
  • Vion Names New CEO Vion, the international meat group, has appointed Ronald Lotgerink as its new CEO with effect from 1 September. Ronald Lotgerink is currently the CEO of Zwanenberg Food Group, a leading European producer and exporter of meat products, canned meat, snacks, soups and sauces. Ronald Lotgerink started his career at KPMG. In 1989 he joined Zwanenberg Food [...]...
  • Harrogate Water Reports Record Sales Harrogate Water has announced another year of record sales with growth of 24 per cent – almost four times higher than market growth for bottled water. The company has seen increased sales in the high-volume supermarket sector, continued strong growth in export and travel markets and greater demand for premium glass products in both grocery [...]...
  • Alcohol Worth £16 Billion is UK’s Leading FMCG Category Innovation in the drinks sector and a reduction in the amount of trade promotions has seen Alcohol retain its place as the top selling FMCG category in the UK, worth £16.1 billion (€18.2 billion) in value sales to the economy. This is according to big data and technology expert for consumer industries, IRI’s Top Categories Special Report – an analysis [...]...
  • Irish Grocery Market Fends Off the Beast from the East The latest grocery market share figures from Kantar Worldpanel, published today for the 12 weeks ending 25 March 2018, show that the Irish grocery market brushed off the Beast from the East to post strong sales growth of 3.8%. Douglas Faughnan, consumer insight director at Kantar Worldpanel, comments: “Although shoppers had upped their spend in preparation for [...]...
  • TrayTrack – A Unique Inline Overhead Concept For Optimum Tray Logistics Once trays have been filled with product, poultry processors will often be faced with how to transport them to packaging equipment elsewhere in the plant. This job can be done manually using crates. Alternatively, product can be transported on a complex system of belt conveyors, usually criss-crossing other similar systems. TrayTrack, a unique automated solution [...]...

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

  • April 18, 2018Int'l Food Exhibition (IFFIP)
  • April 19, 2018GastroPan Exhibition
  • April 19, 2018Expo Drink & Wine
  • April 22, 2018Natural & Organic Products 
AEC v1.0.4

find food jobs

The Magazine

F&D Business Preferred Suppliers

New Subscriber





Subscribe Here



Advertisements