UK: Profit hike, lower debt boosts Dairy Crest shares

By just-food.com | 18 May 2010

Adjusted pre-tax profits up 5%
Revenue dips 1%
Net debt down 19%

Dairy Crest cited "strong growth" of key brands

Shares in Dairy Crest rose this morning (18 May) after the UK's largest dairy processor posted higher underlying profits and lower debts for its last financial year.

The maker of Clover butter and Cathedral City cheese booked a 5% rise in adjusted pre-tax profits to GBP83.5m (US$120.8m) for the year to the end of March.

On a reported basis, pre-tax profits were down 25% at GBP77.8m, although last year's numbers were boosted by the March 2009 sale of Dairy Crest's stake in a venture with Yoplait.

Revenue dipped 1% to GBP1.63bn as lower dairy ingredients and doorstep milk sales offset "strong growth" in sales of key brands, chief executive Mark Allen said.

During the year, Dairy Crest cut net debt by 19% to GBP337.2m.

Shares in the Frijj milkshakes and Country Life butter maker were up 1.1% at 357.5p at 08:41 BST this morning.

For the full earnings statement from Dairy Crest, click here.

Sectors: Dairy, Financials

Companies: Dairy Crest, Yoplait