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Dairy Crest posts higher profits, cuts costs and closes pension scheme
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12/11/2009
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The milk, butter and cheese group Dairy Crest today (12 November) reported a strong six months with a performance that was ahead of its own expectations and said it would continue to focus on cost cutting and brand development.
In the six months to 30 September, Dairy Crest said it had succeeded in improving cash flow, and reducing debt. Sales of its five key brands – which include Country Life butter, Cathedral City cheese and Clover spread – had improved, as had retailer own-label flavoured milk sales. Progress was also made in milk sales to major retail customers and the number of doorstep customers using the company's new internet proposition, milk&more.
The company also said that it had started consultation on the closure of its glass bottling operation at the Fenstanton, Cambridgeshire dairy and was closing its defined benefit pension scheme from 1 April 2010, after which employees will be given the opportunity to join a defined contribution pension scheme.
Chief executive Mark Allen (pictured) said Dairy Crest had a strong six months, delivering against its strategy to invest in its brands, control costs and focus on cash generation to lower debt. "Our second half focus will remain on cash management, cost reduction and the development of our key brands. We remain convinced that this strategy is appropriate given the challenging economic environment in which we continue to operate."
Across the group, revenue for the half year was down 1% to £803.7 million from £808.2 million last time while pre-tax profits climbed 20% to £34 million (£28.4m).
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Author
Ken Hurst
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