Sale of Dairy Business Provides Turnaround for Dairy Crest

Mark Allen, Chief Executive, said: “The sale of our Dairies operations leaves Dairy Crest well positioned for long term profitable and sustainable growth alongside strong cash generation.  We expect this to start in the second half of 2015/16 despite the continuing challenging environment.”

“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.”