FDBusiness.com

Encouraging First Half Performance By Dairy Crest

 Breaking News
  • Glanbia’s Strategic Evolution Continues Glanbia, the global nutrition group, has reported a 7% rise in wholly owned revenue from continuing operations to €2.387 billion (up 9.2% constant currency) for the financial year ended 30 December 2017. The drivers of this revenue growth were a 5.3% improvement in volume, a 0.2% increase in price and a 3.7% contribution from acquisitions. [...]...
  • Green Light For Acquisition of Bake & Co by Dr Oetker The European Commission has approved, under the EU Merger Regulation, the acquisition of Bake & Co of Belgium by Dr Oetker of Germany. Bake & Co supplies frozen bakery products sold as ‘bake-off’ to retail and food service customers. Dr Oetker is active in the supply of food products, alcoholic and non-alcoholic beverages, specialty phosphates, [...]...
  • Harrogate Water Announces Move to Recycled PET Plastic In a landmark move towards achieving a circular economy, Harrogate Water, Britain’s oldest bottled water brand, has announced it has successfully secured sufficient availability of recycled PET (rPET), to ensure all product shall contain 50 per cent recycled content from April 2018. The amount of recycled PET content, all guaranteed UK post-consumer supply, will match that [...]...
  • Meyn Introduces New Meyn Vent Cutter 240 For Vent Drilling at High Speeds The new Vent cutter 240 has been designed to operate at high speeds, up to 13,500 bph without sacrificing accuracy or adding yield loss. Optimal positioning of the bird relative to the vent knife before and during drilling ensures the most optimal cut independent of the weight ranges that are processed. The machine ensures consistently low [...]...
  • Arla Foods Achieves Record Organic Revenue Growth in 2017 Strong performances by Arla Foods’ global brands, its international markets, and the ingredients business ensured a year of high growth for international dairy co-operative Arla Foods in 2017, as it delivered a 27.4% increase in pre-paid milk price to its farmer owners, and a net profit of 2.8% of revenue within its target range. This was [...]...

Encouraging First Half Performance By Dairy Crest

Encouraging First Half Performance By Dairy Crest
November 13
10:38 2017

Reflecting strong volume and value growth across most of its brand portfolio, Dairy Crest has reported an 8% increase in adjusted profit before tax to £20.6 million on revenue from continuing operations up 16% to £220.1 million for the six months to 30 September 2017 compared to the corresponding period last year. Revenue increased in both of Dairy Crest’s product groups – cheese and functional ingredients by 17% and butters, spreads and oils by 19%.

Total product group profit from continuing operations increased by 9% to £25.1 million. Cheese and functional ingredients group profits increased by 91%, to £22.1 million. This more than offset the impact of high butter input costs in the butters, spreads and oils product group where profits of £3.0 million represent an £8.5 million reduction compared to last year.

In aggregate, volumes of the group’s four key brands (Cathedral City, Clover, Country Life and Frylight) grew by 4% in the first half, in spite of the input cost challenges faced by Country Life. Overall value growth of 6% was ahead of volume growth – a trend that is expected to continue in the second half of the financial year.

All of Dairy Crest’s spreads brands were in growth for the six month period, delivering a combined 8% uplift in volume versus a spreads market which declined by 3%, according to IRI Kantar data. The pace of decline of the spreads market has started to slow, reflecting the impact of increased butter pricing on demand.

Dairy Crest’s functional ingredients business is progressing well and is successfully building momentum in securing a customer base in the infant formula market for demineralised whey and GOS through its partner, Fonterra.

Mark Allen, chief executive of Dairy Crest, comments: “We have had an encouraging first half, with Cathedral City, Clover and Frylight delivering good growth in both volumes and value. Cathedral City, the nation’s favourite cheese, continues to go from strength to strength and has produced exceptional growth over the period. We have delivered good profit growth despite a record high cream price, which has a temporary but significant impact on input costs in our butter and spreads business.”

He adds: “We expect to accelerate sales of demineralised whey and GOS in the second half of this year. In conjunction with our partner Fonterra we are making good progress in developing sales channels for our products. Our strong brands and the quality and efficiency of our operating facilities mean that we are well positioned to grow. While we expect butter input costs to continue to be challenging for the remainder of the year, we are confident in delivering our full year expectations.”

About Author

mike

mike

Related Articles



Food & Drink Business Conference & Exhibition 2016

Upcoming Events

  • February 25, 2018fish international
  • February 27, 2018Warsaw Gastro Show
  • February 27, 2018Int'l Food Fair
  • February 28, 2018GAST
AEC v1.0.4

find food jobs

The Magazine

F&D Business Preferred Suppliers

New Subscriber





Subscribe Here



Advertisements