Strong results for Dairy Crest

Dairy Crest’s key brands showed strong growth in the six months to September 30.

According to a pre-close trading update for the six months ending September 30, Dairy Crest has performed well and has made good progress in the first six months of the year. The company’s key brands have been supported by high levels of advertising and promotional spend.
The Dairies Division has benefited from milk price reductions and from an ongoing cost reduction programme. This has compensated for the unwinding of stock profits in the company’s cheese business.
Lower borrowings and interest rates have led to a reduced finance charge for the period, offsetting the loss of contribution from Yoplait Dairy Crest, following the sale of its 49% stake in March.
Sales of milk to Dairy Crest’s major retail customers are up 10% compared to last year. The company has also completed its new cheese packing facility at Nuneaton and this is now fully operational.
Dairy Crest was forced to cut costs last year, with the most notable savings made through a head office restructure in September and the closure of its Nottingham dairy in February this year. These cuts have contributed to lower costs this year.