Clover-to-Cathedral City maker Dairy Crest said actions to reduce costs have resulted in “good progress” for the company in the first six months of its fiscal year.
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Ahead of its interim results on 12 November, Dairy Crest said it has “performed well” during the period to 30 September, and it is seeing the benefits of being a “broadly-based dairy business”.
“This has been a strong six months for Dairy Crest,” said Mark Allen, chief executive. “In the autumn of last year we made it clear that we would continue to invest in our brands, control our costs and focus on cash generation to lower our debt. We believed this was the best strategy to meet the changing economic environment. Against this background we have made good progress and Dairy Crest is well positioned for the future.”
Lower borrowings and interest rates led to a reduced finance charge for the period, the company said, offsetting the absence of a contribution from Yoplait Dairy Crest, in which the company sold its 49% stake in March.
The dairy group said its key brands continue to perform “strongly”, supported by high levels of advertising and promotional spend.
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By GlobalDataIt added that Dairy Crest will continue to advertise and promote its key brands strongly in the second half and remains committed to improving profitability by creating new products and improving the way it does business.
“Looking forward we intend to maintain this strategy. We are confident that it will be successful and will continue to deliver shareholder value,” Allen said.
