Arla Foods UK gains from Express merger
In the company’s interim results, the Chairman, Sir David Naish, reported that in addition to the synergies achieved from the merger, the company delivered results in line with expectations.
06/06/05 Arla Foods UK plc may gain up to £20 million in synergies from the merger with Express Dairies 12 months earlier than expected.
In the company’s interim results, the Chairman, Sir David Naish, reported that in addition to the synergies achieved from the merger, the company has delivered results in line with expectations. Profit before taxation doubled to £10.1 million (2004: £5.0 million).
"Led by Lurpak, our brands continue to perform strongly,” said Sir David. “We expect to make satisfactory progress in the second half as we derive growing benefits from both merger synergies and our investment programme."
He also confirmed that Arla Foods had succeeded in maintaining its share of supermarket milk following substantial changes to retailers' sourcing arrangements.
For the first six months of 2005, Arla Foods UK plc’s sales from continuing operations grew to £685.2 million (2004: £676.1 million). Pre-tax profit doubled to £10.1 million (2004: £5.0 million). The improvement reflects reduced exceptional costs related principally to the closure of HT Webb and the Stratford distribution depot.
