Dairy Crest has booked a 16% drop in first-half adjusted profits as continued difficulties at its milk unit weighed on the bottom line.
The Cathedral City cheese maker said adjusted pre-tax profit fell to GBP19.1m (US$30.5m) for the six months ended 30 September, down from GBP22.7m last year. Revenue fell to GBP688.2m from GBP739.1m.
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Sales of Dairy Crests four key brands – Cathedral City, Country Life, Clover and Frijj – rose 11% in the half year period. However its dairies business suffered lower profits and sales were down 11% as the company moves to reduce its exposure to the sector.
Dairy Crest said it is on track with a plan to restore 3% return on sales in the medium term.
Dairy Crest also emphasised the strength of its balance sheet following the sale of its St Hubert French spreads brand. Including proceeds from the sale, Dairy Crest’s total profit was up 65%.
“We now have the ability to make UK acquisitions,” the company added.
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By GlobalData
