Dairy Crest reports “much improved” financial position

The UK dairy giant Dairy Crest has reported a  much improved financial position following the successful disposal of its St Hubert division, which sold for €430 million, generating a post-tax profit on sale of £47.7 million. The firms says it is now “well placed to make targeted, value-enhancing acquisitions in the UK.”

New products saw strong performace in its six-month report, from key brands and new products. New products such as Chedds and Frijj are now firmly establishe, and its ongoing savingsplan is ahead of its £20 million target. However, dairies profit is lower with sales down by 11%, and plans are afoot to reduce the company’s exposure in this sector.

Mark Allen, chief executive, says: “Dairy Crest has had a busy first six months as we continued to navigate a challenging trading environment. 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 focused 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. espite 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.”