Dairy Crest’s profit before tax for the nine months ended 31 December 2009 was slightly ahead of expectations, buoyed by strong performance in the last three months. This strong performance has been achieved through its strategy of delivering growth by investing in brands, controlling costs and generating cash.
As anticipated, sales for the nine months ended 31 December 2009, excluding joint ventures, are down 1% on the corresponding period last year due to lower sales of commodity ingredients and milk to non-major retail customers.
Mark Allen, chief executive of Dairy Crest, commented: “We are encouraged by the strong progress we have made so far this year and anticipate that we will maintain our momentum into the fourth quarter. Over the last two years our five key brands (Cathedral City, Country Life, St Hubert Omega-3, Clover and Frijj) have grown by 39%. We will continue to focus on the strategy that has helped us deliver this success. Cash generation remains key and we have identified opportunities to continue the drive that has delivered a significant reduction in our net debt.
“Looking forward, the increased investment in our liquid milk dairies will allow us to drive further cost efficiencies, remain competitive and maintain high levels of service to our customers.
“We remain cautious about the trading environment for 2010 but the improvements we have made to our business during 2009 leave us well positioned to cope with the challenges.”
Source: Dairy Crest plc
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