Dairy Crest reported an increase in profitability for the first half of the year, its first full trading period since the sale of its liquid milk business to Muller.
The company revealed that operating profit increased to GBP20m from GBP17m in the comparable period of last year. On an adjusted basis, profit before tax rose 19% to GBP19.1m. Net profit climbed to GBP10.2m compared to a loss of GBP109.4m in the prior year.
CEO Mark Allen said that the company’s “strong” profit growth was the result of its “transformation into a leaner and more focused organisation”.
Dairy Crest did, however, report a 7% drop in revenue, which decreased to GBP190m. Looking at its branded portfolio, Dairy Crest reported volume growth across all its brands with the exception of Cathedral City, with cheese volumes down 5%.
On a value basis, branded sales fell by a total of 8% due to pricing. Value sales were down for Clover, Country Life and Cathedral City, dropping 8%, 2% and 11% respectively. Value sales for FryLight increased 16%, in line with volume growth.
“Our four key brands are continuing to perform well in a challenging marketplace, with strong volume growth for Clover, Country Life and Frylight and a successful launch of new branding and packaging for Cathedral City,” Allen commented.