Dairy Crest has announced revenues down 7% to £688m for its half year ended September. Profit and earnings per share were up 65%, but adjusted profit before tax was down 16%.
According to the company, the sale of St. Hubert – which generated a post-yax profit of £47.7m – ‘transformed’ its balance sheet and left it well placed to make targeted, value-enhancing acquisitions in the UK.
Dairy Crest noted that sales of UK Spreads and Cheese sales were jointly up 3%, and that its four key brands together recorded double digit volume and value growth. New products - Chedds and FRijj the Incredible - are now, it said, firmly established. The company plans further innovation in the second half, as well as increased A&P investment to maintain momentum.
Annual cost savings were said to be ahead of the £20 million target
Dairies profits were lower in what the company said was a continuing difficult trading environment, with sales down 11% in line with Dairy Crest’s strategy to reduce exposure to this sector.
"Dairy Crest has had a busy first six months as we continued to navigate a challenging trading environment,” said Mark Allen, chief executive. “The decisive actions we have taken during the period leave us well placed as we move forward. The sale of St Hubert has created a more focussed business and a much stronger balance sheet. We now have the ability to make UK acquisitions, but we will take time to ensure that any transaction creates value for our shareholders.”
“Despite the challenging environment we have continued to grow our key brands. We have reduced our cost base and made improvements to our Dairies business. We expect this to benefit future profitability. We remain confident that full year performance will be in line with our expectations."
