FDBusiness.com

Steady First Half Performance by Dairy Crest

 Breaking News
  • Arla Foods Acquires Middle East and Africa Kraft Branded Cheese Business From Mondeléz International European dairy co-operative Arla Foods has reached an agreement with US-based international confectionery, food, and beverage company Mondeléz International to acquire its processed cheese business in the Middle East region, which is currently licensed under the Kraft brand. The acquisition also gives Arla full ownership of a state-of-the-art cheese production site in Bahrain, which provides [...]...
  • UK Grocery Market Growth Cools as Christmas Nears Despite retailers and shoppers getting into the festive spirit, the latest grocery market share figures from Kantar Worldpanel, for the 12 weeks to 2 December 2018, show the sector is now growing at 2.0% – its slowest rate since March 2017. Fraser McKevitt, head of retail and consumer insight at Kantar Worldpanel, comments: “Consumers are benefiting [...]...
  • Cleveland Clinic Studies Reveal Role of Red Meat in Gut Bacteria, Heart Disease Development In concurrent studies, Cleveland Clinic researchers have uncovered new mechanisms that demonstrate why and how regularly eating red meat can increase the risk of heart disease, and the role gut bacteria play in that process. The research, led by Stanley Hazen, M.D., Ph.D., builds upon previous work showing TMAO (trimethylamine N-oxide) – a gut bacteria [...]...
  • The Complete Package at Contract Pack 2019 Packaging Innovations 2019 is set to welcome back Contract Pack for the twelfth-year at Birmingham’s NEC on 27 & 28 February 2019. Supported by the British Contract Manufacturers and Packers Association (BCMPA), the Contract Pack 2019 zone will host 20 BCMPA accredited exhibitors, offering an unrivaled opportunity for brand owners and manufacturers to meet potential [...]...
  • Müller Completes Largest Single Investment in Scottish Dairy Processing in a Decade Müller Milk & Ingredients has completed a £15 million project to substantially upgrade Scotland’s largest fresh milk dairy in Bellshill and secure 265 jobs. The project represents the largest single investment in Scottish dairy processing for more than a decade. It gives Müller’s Bellshill dairy the capacity to process more than 370 million litres of fresh [...]...

Steady First Half Performance by Dairy Crest

Steady First Half Performance by Dairy Crest
November 08
12:54 2013

Dairy Crest has reported a 2% fall in revenue to £672.2 million, reflecting lower spreads and milk volumes, for the six months ended 30 September 2013. Group pre-exceptional profit from continuing operations fell 7% to £27.0 million. However, group adjusted profit before tax (before exceptional items, amortisation of acquired intangibles and pension interest) was £21.9 million, up 18% versus £18.6 million in 2012.

In line with its well-established strategy, the UK dairy group continues to focus on growing added value sales and reducing its cost base. In aggregate, sales of its four key brands (CathedralCity, Country Life, Clover and FRijj) were up 1% despite trading against tough comparatives last year when sales were up 11%.

Dairy Crest’s cost reduction programme remains ahead of target and the group has made good progress to improve efficiency across the business during the first half. Dairy Crest anticipates that cost reduction projects initiated this year will deliver annual benefits ahead of its £20 million target.

Cheese revenues and profits increased compared to the same period last year. However, Dairy Crest encountered more difficult in its Butters and Spreads business.

Dairy Crest made solid progress in its Dairies division during the first half and remains committed to improve profits with a medium-term target of 3% return on sales. The key drivers are cutting costs, growing FRijj sales and maximising the profits from the sale of redundant properties. Dairy Crest needs these to more than offset higher farmgate milk prices and declining doorstep sales.

Dairy Crest is investing around £45 million to manufacture demineralised whey powder, a base ingredient for baby food – a fast growing global market. Dairy Crest expects production to start in the first half of 2015 and that the project will have a five year cash payback and enhance annual operating profits by over £5 million.

Mark Allen, chief executive of Dairy Crest, comments: “Dairy Crest has had a steady first half. Despite the challenging environment we have continued to grow our key brands through innovation and reduce our cost base. We have committed to an exciting whey project which will increase future profits and widen our customer base. This is a significant move for Dairy Crest which demonstrates our focus on growing the business in added value markets. We remain confident that full year performance will be in line with our expectations.”

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