Sale of Dairy Business Provides Turnaround for Dairy Crest
05 Nov 2015 --- UK dairy product group Dairy Crest has announced a strong first half performance on many of its leading brands including a sales increase of 7% for Cathedral City cheese, and has confirmed that full year expectations remain unchanged. The sale of its loss-making dairy business is due to complete at the end of December and the company sees this as the turnaround moment.
“We highlighted early in the current financial year that profits would be weighted towards the second half,” he continued. “With the benefit of lower cheese costs and an expected improved performance from our Spreads and Butters business in the second half, our full year expectations remain unchanged. Following the sale of our Dairies business, Dairy Crest will be a predominantly branded, simpler, more focused business with a significantly reduced overhead base. Future sales of ingredients for infant formula, which will start in the second half, will provide added impetus.”
“We expect the increased focus on growth and cash generation to allow us to maintain our strong track record of rewarding shareholders with higher dividends,” he concluded.
