Dairy Crest, the UK firm behind brands including Cathedral City cheese and Clover butter, said today (31 March) that annual profits will be higher than the year before as lower costs buoy its dairies division.
The company said pre-tax profits in the year to the end of March will be “ahead” of the level posted at the end of the 2008/09 financial year.
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Dairy Crest’s dairies division has put in a “very strong” performance during the year as the unit benefited from lower costs.
However, increased investment in advertising and promotions will weigh on earnings from Dairy Crest’s spreads and cheese business, the company said.
Nevertheless, Dairy Crest insisted the investment had paid off, with its five key brands – which also include Country Life butter, Frijj milkshakes and St Hubert Omega 3 cheese – performing “strongly” against “very tough prior-year comparatives”.
“Over recent years we have driven consistent growth in these brands and continue to outperform the market,” the company said.
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By GlobalDataDairy Crest is set to issue its preliminary results on 18 May.
