Dairy Crest announces unaudited results

Strong first half performance

• Operating cash flow improved by £45m
• >Half-year net debt lowest for three years.

Continued brand growth

• 10% increase in sales of five key brands
• Cathedral City annual retail sales exceed £200m for the first time.

Good growth in other added value markets

• 50% growth in retailer own-label fresh flavoured milk sales.

Continued focus on cost reduction and efficiency improvements

• Further rationalisation of glass bottling capacity planned, building on decisive action taken last year.

Reduced risk

• Defined benefit pension scheme closing to future accrual.

Mark Allen, chief executive, said: “Dairy Crest has had a strong six months. This time last year, we set out our strategy to invest in our brands, control our costs and focus on cash generation to lower our debt. The results we’re announcing today confirm that we have delivered against this strategy. We’re encouraged by the good progress we’ve made, which has delivered a 9% improvement in adjusted pre-tax profit, a £45m improvement in operating cash flow and has allowed us to reduce our net debt by over £110m since September 2008.”

Source: Dairy Crest