Dairy Crest posts optimistic outlook

UK – Following a decent first half of the year, Dairy Crest has forecast a successful conclusion to the financial year ending March 2005.

Profits rose 10% in the first half of 2004, and the rapid growth of its Cathedral City Cheddar brand, as reported last week, have helped boost that figure.

However, looking to 2006, the company warned that it would be hit by the loss of fresh milk supply contracts to supermarket chains Asda and Tesco.

Chief executive Drummond Hall said: “We are continuing to invest in developing the business at the same time as taking action to address the ongoing profitability of the fresh milk business.”