FDBusiness.com

Transformational Year For Dairy Crest

 Breaking News
  • HKScan Strengthens its Meals Offering With Investment in Estonia HKScan, the leading Nordic food company, plans to invest in its Rakvere unit in Estonia. The €8 million investment will go towards modernising the unit’s frying department, including the expansion of the building and the installation of new cooking and packaging lines enabling implementation of new technologies and packaging solutions. Construction is to commence in [...]...
  • Food and Drink is at the Heart of the UK’s Largest Packaging Show Packaging Innovations, Empack and Label&Print returns to Birmingham’s NEC on 28 February-1 March 2018, and is set to be the most innovative show to date. With over 290 exhibitors already signed up, the UK’s largest annual event for the entire packaging supply chain will feature the latest industry innovations and technologies, alongside a major free-to-attend [...]...
  • AGRO Merchants Group Acquires Grocontinental AGRO Merchants Group, a global leader in cold storage and logistics solutions, announced today the acquisition of UK-based Grocontinental Limited. This transaction reinforces AGRO’s position as the leading cold storage and logistics provider in the United Kingdom and Ireland, deepens its commodity expertise, and substantially enhances its value-added service offerings for customers. David Grocott and Linda Grocott, third generation owners of [...]...
  • Trade Fair and More – The Event and Congress Programme For Anuga FoodTec 2018 Resource efficiency will be the primary focus of Anuga FoodTec 2018, the leading international supplier fair for the food and beverage industry, which will be held in Cologne, Germany from 20 to 23 March 2018. Around 1,700 suppliers from more than 50 countries will be presenting their new products for the production and packing of [...]...
  • TINE to Invest €77 Million in New Jarlsberg Plant in Ireland TINE, Norway’s largest farmer-owned dairy co-operative, is to invest €77 million in a dairy with the capacity to produce 20,000 tonnes of Jarlsberg cheese a year. The goal is to secure and strengthen Jarlsberg sales outside of Norway as export supports are phased out in 2020. This will make export of Jarlsberg from Norway unprofitable. “Jarlsberg [...]...

Transformational Year For Dairy Crest

Transformational Year For Dairy Crest
May 20
09:27 2016

2015/16 was a significant year for Dairy Crest as it disposed of its Dairies business and completed a programme of significant investment in functional ingredients manufacture at its Davidstow facility in Cornwall to transform the group into a simpler business focused on growth and innovation in branded and value-added products.

For the year ended 31 March 2016, group revenue fell by 5.8% to £422.3 million and adjusted profit before tax (before exceptional items and amortisation of acquired intangibles), which is Dairy Crest’s key group profit measure, decreased by 1.9% to £57.7 million. Reported profit before tax of £45.4 increased by 23.4% from 2015 predominantly due to the lower level of exceptional items incurred.

Despite sales volumes of its four key brands increasing by 1.7%, Dairy Crest faced price deflation throughout the year across its cheese, whey and butter operations. Cheese and whey revenues fell by £10.7 million (3.9%) despite increased sales volumes. Revenue in Butter, Spreads and Oils fell by £17.4 million (10.2%). Other revenue comprised warehousing and distribution services provided to third parties.

The very difficult conditions in the liquid milk market throughout 2015 impacted the group’s Dairies business, which made pre-exceptional operating losses of £33.3 million in the nine months before its sale to Muller Group.

Mark Allen, chief executive of Dairy Crest.

Mark Allen, chief executive of Dairy Crest.

Capital expenditure in the continuing business amounted to £56.4 million (down from £63.9 million in 2015) with the majority having been incurred at the Davidstow site where the demineralised whey and GOS facilities have been built. Commissioning started in the final quarter and finished in the first quarter of 2016/17. Dairy Crest now has well invested facilities and, following the new project expenditure at Davidstow, future levels of capital expenditure will fall further.

“This is an exciting time to be leading Dairy Crest. Although we expect food price deflation to persist in the short term, the business is well positioned to deliver profitable and sustainable growth,” comments Mark Allen, chief executive of Dairy Crest.

“We are making progress with all of our four key brands and the continued investment we are putting behind them this year gives me confidence that we can continue to grow their market share. The other focus for 2016/17 will be on accelerating sales of demineralised whey and GOS, the new infant formula ingredients and continuing to explore further applications for GOS.” He continues: “Future cash generation will improve as the sale of our Dairies business and completion of the investment at Davidstow removes a significant drain on cash.”

About Author

mike

mike

Related Articles



Food & Drink Business Conference & Exhibition 2016

Upcoming Events

  • January 8, 2018RAI Exhibition
  • January 16, 2018Sival Plant Production Trade Show
  • January 17, 2018Dutch Organic Trade Fair
  • January 17, 2018Anfas Food Product
AEC v1.0.4

find food jobs

The Magazine

F&D Business Preferred Suppliers

New Subscriber





Subscribe Here



Advertisements