UK: Dairy Crest shares curdle despite H1 profits

By just-food.com | 12 November 2009

Shares in Dairy Crest, the UK's largest dairy group, have fallen by more than 3% today (12 November) despite a 9% rise in half-year profits.

The company, which sells brands including Clover butter and Catheral City cheese, booked underlying pre-tax profits of GBP38.1m (US$63.1m) for the six months to the end of September.

Robust cheese and spreads sales helped offset weaker showings from Dairy Crest's dairy commodities and its milk delivery business.

However, the group's turnover was still down 1% at GBP803.7m.

Nevertheless, chief executive Mark Allen insisted: "Dairy Crest has had a strong six months. At this time last year we set out our strategy to invest in our brands, control our costs and focus on cash generation to lower our debt. The results we are announcing today confirm that we have delivered against this strategy."

Dairy Crest's shares stood at 393.1p - down 3.7% - at 13:25 this afternoon.

Sectors: Commodities & ingredients, Dairy

Companies: Dairy Crest