Dairy Crest booked a 7% increase in full-year adjusted earnings this morning (23 May), as the UK dairy firm hailed a “transformational year” that saw it pay down debt and refocus on its domestic market. The company revealed that adjusted pre-tax profit rose to GBP50.6m (US$76.27m) in the 12 months to end-March, up from GBP47.5m last year. Net profit rose to GBP54.5m, compared to a net loss of GBP17.1m in fiscal 2011/12. The bottom line was boosted by the sale of Dairy Crest’s St Hubert French spread brand, the proceeds of which were used to reduce debt by 82% and contribute to the group’s pension fund. Dairy Crest CEO Mark Allen commented: “This has been an important year in the history of Dairy Crest. The sale of our French spreads business and subsequent restructuring of our balance sheet has strengthened our financial position and leaves us well placed to invest for growth in the UK, either internally or through acquisitions.” The St Hubert’s disposal hit sales, which dropped 9% on the year to GBP1.38bn. Sales of Dairy Crest’s four largest brands – Cathedral City, Clover, Country Life and Davidstow – remained flat in the year. However, Allen emphasised that the brands increased market share in the face of falling UK consumption. Dairy Crest proposed a 2% increase in its final dividend. Shares in the UK cheese-to-spreads group fell 1.31% in morning trade today, dipping to 469.84 pence at 11am (BST). Check back later for just-food’s interview with Allen.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
